المادة 98: Restriction on Secondary Market Activity

Article 98: Restriction on Secondary Market Activity

a. Subsequent transfers of units in a private fund offered in accordance to the provisions of Article (83) of these Regulations may only be made to any of the followings:

1) to existing unitholders,

2) to investors under the categories of institutional and qualified clients,

3) where the maximum amount payable for such units is not more than (200) thousand Saudi Riyals, or an equivalent amount.

b. In the case of closed-ended private funds, transfer of ownership of the fund’s units must not, in all cases, result in exceeding the ownership of subscribers in exchange for cash from retail clients up to (50%) of the total value of the fund’s units. FOREIGN FUNDS