Article 4. Types of investment funds The Law on Investment and Venture Funds

Home / RLA / Article 4. Types of investment funds The Law on Investment and Venture Funds

1. The following types of investment funds operate in the Republic of Kazakhstan:

1) joint-stock investment fund;

2) a mutual investment fund, which can be created in the following forms - open, interval or closed.

1-1. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (effective ten calendar days after the date of its first official publication).

2. An open-ended mutual investment fund grants the holder of its share the right to demand that the management company repurchase the share in the cases, on the terms and in accordance with the procedure established by this Law and the rules of this investment fund, but at least once every two weeks.

3. An interval mutual investment fund grants the holder of its share the right to require the management company to repurchase the share in the cases, on the terms and in accordance with the procedure established by this Law and the rules of this investment fund, but at least once a year.

4. A closed-end mutual investment fund grants the holder of its share the right to participate in the general meeting of the holders of shares of this fund, as well as to receive dividends on the share on the terms and in accordance with the procedure provided for by the rules of the fund.

A legal entity whose financial instruments and (or) other assets issued (provided) are part of the assets of a closed-end mutual investment fund and amount to five percent or more of its assets is not entitled to be a holder of shares of this investment fund.

The holder of shares of a closed-end mutual investment fund has no right to demand from the management company the redemption of shares belonging to him, unless otherwise provided by this Law and the rules of the fund.

5. An investment fund whose investment declaration or rules provide for the possibility of investing the fund's assets without complying with the investment conditions set out in subparagraphs 6) and 9) of paragraph 1 of Article 41 of this Law is a risky investment fund.

6. Risky investment funds can only be joint-stock or closed-end mutual funds. Real estate funds cannot be risky investment funds.

7. Excluded by the Law of the Republic of Kazakhstan dated December 28, 2011 No. 524-IV (effective after ten calendar days after its first official publication).

The Law of the Republic of Kazakhstan dated July 7, 2004 No. 576.

This Law defines the legal status, specifics of the creation, operation, reorganization and liquidation of a joint-stock investment fund, the conditions and procedure for the creation, operation and termination of a mutual investment fund, the specifics of the legal status and activities of venture funds in the Republic of Kazakhstan, regulates relations related to the activities of professional securities market participants to ensure the functioning of investment funds, and It also defines the procedure for state regulation of investment funds.

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