Unit Trusts Act, 1972

Prohibition of certain purchases and sales of units of unregistered unit trust schemes.

7.—(1) The manager or trustee (if any) under a unit trust scheme that is not a registered unit trust scheme or any other person concerned with the management or supervision of the scheme shall not purchase or sell units of the scheme.

(2) The prohibition contained in subsection (1) of this section does not apply to the purchase, from a holder thereof, of units of a unit trust scheme the registration of which under this Act stands cancelled.

(3) A person who contravenes this section shall be guilty of an offence.

(4) In subsection (1) of this section and in section 8 of this Act “unit trust scheme” includes any arrangements (other than a company, a building society, a friendly society or an industrial and provident society) made for the purpose, or having the effect, solely or mainly, of providing facilities for the participation by the public, as beneficiaries, otherwise than under a trust, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property whatsoever, but does not include any arrangement which is made for the purpose or has the effect, solely or mainly, of providing facilities for the participation by the public, as beneficiaries, under a trust or otherwise, in profits or income arising from the acquisition, holding, management or disposal of securities or any other property whatsoever and which is administered by the holder of a licence under the Insurance Act, 1936, and for participation in which, in respect of units first issued after the commencement of this section, a policy of assurance upon human life is required to be effected, and “manager” and “units” shall be construed accordingly.