Decision No. 30/2006/QD-BTC on supplementing the Charter on the organization and operation of the Securities Investment Fund and the Fund Management Company issued together with Decision No. 73/2004/QD-BTC dated September 3, 2004, of the Minister of Finance.

DECISION

Regarding supplementing the Charter on the organization and operation of securities investment funds and fund management companies issued pursuant to Decision No. 73/2004/QD-BTC dated September 3, 2004 of the Minister of Finance

THE MINISTER OF FINANCE

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 144/2003/NĐ-CP dated November 28, 2003 of the Government on securities and the securities market;

At the proposal of the Chairman of the State Securities Commission.

Pursuant to …;

Article 1. Supplement Article 12a regarding the increase in capital of public funds in Chapter II of the Charter on the organization and operation of securities investment funds and fund management companies issued pursuant to Decision No. 73/2004/QD-BTC dated September 3, 2004 of the Minister of Finance as follows:

1. Conditions for increasing capital of public funds

a. The charter of the fund must provide for the possibility of increasing the fund's capital;

b. The fund's business operations in the two years immediately preceding the year in which permission to increase capital is sought must be profitable;

c. The fund management company must not have been subject to any administrative penalty or criminal violation due to violation of the law within the past two years;

d. Fund certificates issued to existing investors of the fund through the issuance of subscription rights for fund certificates. The issue price of fund certificates for existing investors of the fund shall be determined based on the net asset value (NAV) of the fund by the General Meeting of Investors of the fund;

e. The plan for issuing additional fund certificates must be fair, transparent, protect the interests of investors, and comply with the provisions of the law and be approved by the General Assembly of Investors.

2. Documents for requesting permission to increase capital of public funds

2.1. The documents for requesting permission to increase capital of public funds include:

a. Application for permission to increase capital of public funds;

b. Draft Offering Circular, specifying the plan for issuing additional fund certificates and the plan for using the capital raised from the additional issuance of fund certificates;

c. Resolution of the Investor General Meeting approving the increase in capital and the plan for issuing additional fund certificates to increase capital;

d. Underwriting agreement (if any);

e. Financial statements for the two consecutive years immediately preceding the year in which permission to increase capital is sought, certified by an independent auditing organization. In cases where the period from the end date of the most recent financial statement to the date of submission of the application for permission to increase the charter capital of the fund to the State Securities Commission exceeds ninety days, the fund management company needs to submit supplementary financial reports of the fund up to the latest quarter;

f. Confirmation opinion of the supervisory bank regarding the compliance with current laws of the public fund.

2.2. Within a maximum period of thirty working days from the date of receipt of complete documents, the State Securities Commission will notify in writing its approval of the increase in capital of public funds. In case of non-approval, the State Securities Commission must respond in writing and explain the reasons.

3. Distribution of fund certificates

The distribution of additional issued fund certificates shall be carried out according to Article 7 of Decision No. 73/2004/QD-BTC dated September 3, 2004 of the Minister of Finance promulgating the Charter on the organization and operation of securities investment funds and fund management companies.

4. Reporting on the results of the capital increase round of public funds

Within ten working days from the end date of the additional issuance of fund certificates for capital increase, the fund management company must report the results of the issuance to the State Securities Commission in accordance with Article 9 of Decision No. 73/2004/QD-BTC and publicly announce on mass media the following contents: total number of fund units sold, number of investors holding fund units, total additional capital raised. The fund management company must disclose information about the securities investment fund in accordance with Circular No. 57/2004/TT-BTC dated June 17, 2004 of the Minister of Finance guiding the disclosure of information on the securities market.

Article 2. This Decision takes effect fifteen days after publication in the Official Gazette.

Article 3. The Chairman of the State Securities Commission, the Director of the Office of the Ministry of Finance, fund management companies, and related parties are responsible for implementing this Decision./.