Unit Trusts Act, 1990
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Prohibition of certain transactions and making of certain profits by management companies under unit trust schemes and by certain other persons. |
13.—(1) Neither a management company under a unit trust scheme nor, where the management company is a body corporate, a subsidiary or a holding company of that body or a subsidiary of the holding company of that body or a director or person engaged in the management of such body or company, shall carry out transactions for itself or himself, or make a profit for itself or himself from transactions, in any assets held under the scheme. | |
(2) A management company or a trustee under a unit trust scheme (not being a unit trust scheme to which section 9 (2) applies) or, where the management company or trustee is a body corporate, a subsidiary or a holding company of that body, or a subsidiary of the holding company of that body, shall not— | ||
(a) borrow money on behalf of the scheme for the purpose of acquiring securities or other property for the scheme, or | ||
(b) lend money that is subject to the trusts of the scheme to a person to enable him to purchase units of the scheme, or | ||
(c) mortgage or charge, or impose any other incumbrance on, any securities or other property subject to the trusts of the scheme. | ||
(3) Subsection (1) or (2) shall not apply to the extent that the Bank may specify in a condition imposed by it under section 5 . | ||
(4) Subsection (2) shall not have effect with respect to a trustee under a unit trust scheme to which that subsection applies or, where such trustee is a body corporate, a subsidiary or a holding company of that body, or a subsidiary of the holding company of that body, until the day which is 3 months after the date of passing of this Act. | ||
(5) A person who contravenes this section shall be guilty of an offence. |