- Published regulation on issuance and requirements for sharia mutual funds (RDS).
Also provides for new product alternatives for investors, amends and replaces old law.
Regulation Key Provisions
- Provided for new types of RDS such as collective investment contracts formed for individual investors, and provisions for RDS liquidation due to certain conditions.
- Clarified investment limit per party for sukuk-based RDS (RDSBS), at most 50%.
- Added to the provisions on filing documents for issuing RDSBS not by public offering.
- Aligned regulation of limited participation RDS with conventional limited participation mutual funds (RDPT) by removing the provisions on exclusion of the asset guarantee.
- As well as reduced the minimum investment limit value from IDR 5 billion to 1 billion.
- Provided that foreign sharia securities include: shares, sukuk with maturity of one year or more, and other securities such as islamic REITS and asset backed securities.
- Set out types of sources of funds and use and distribution that cannot be recognized as net asset value of RDS; prohibits use, must get sharia supervisory board approval.
- Investment managers must disclose in the prospectus if a deduction of zakat on the assets of the RDS has been made; if deducted, must provide the basis of calculation.
- As well as selected zakat institution; must disclose deduction on annual financial report
- Regulations are effective on date of promulgation.