59.What you know about investment funds services?

Equity investment fund is a joint stock company which operates, is to attract investors' funds through the issuance of its own ordinary registered shares, investing in securities and other objects, and company name that contains the word "equity investment fund" or "investment fund" .

Rules for the organization of investment funds provide a set of actions of all participants in this process, leading to the formation and improvement of the relationship between them. In accordance with the developed conditions for the functioning of investment funds, which provide for full compliance with the legal requirements of actors in order to obtain licenses and contractual obligations.

Requirements for the charter of the investment fund

Charter Investment Fund is the main constituent document of the fund. The charter must contain:

- full and abbreviated name of the fund;

- location;

- organizational and legal - - form of existence;

number, nominal value and category of shares permitted under the fund;

- the rights of shareholders of the fund;

- amount of share capital;

- structure and competence of the management of the fund and the procedure for their decision-making;

- procedure for preparation and holding of the general meeting of shareholders.

Charter Investment Fund in addition to the mentioned requirements, should include:

- a provision stating that the subject of the investment fund is to invest in listed in its investment declaration securities or securities

- investment declaration containing the main directions of the objectives and constraints of the investment activities of the fund, the limit (maximum and minimum) of the share of its assets that may be invested in securities;

- order of borrowing;

- a ban on the creation of any special funds;

- a ban on the purchase of its shares, except as otherwise expressly provided by law

- a ban on the production of other equity securities, other than common shares;

- prohibition on other than investment, activities;

- procedure, place and terms of payment of dividends.

Terms of Business Investment Funds

Investment fund is not entitled to any other activities not relating to the operations of the investment fund in accordance with the investment declaration. Thus, investment activity within the exclusive mind is not allowed to combine with other activities. This imposes certain restrictions which are expressed as follows. Investment Fund may not:

1. place other securities, except for ordinary registered shares;

2. carry out the placement of shares by closed subscription;

3. the absence of a license to place additional shares and other equity securities.

Equity investment fund shares may be paid only in cash or property provided by its investment declaration. In this case, incomplete payment on their location is not allowed.

Investment Fund has a number of limitations of their activities. For example, he is obliged to keep all belonging to him securities issued in certificated form, as well as documents proving his right to immovable property in a specialized depository.

In addition, the investment fund must keep his money belonging to a separate bank account, it is in the specialized depositary if it is a bank or other lending institution has the right to open and customer accounts.