Decree of the Ministry of Finance No. 207 / 1998 Coll.
Ordinance of the Ministry of Finance on the calculation of the value of securities held in a mutual fund or investment fund
Valid
Order
Effective from 01.09.1998
Text versions:
09.05.2002
01.09.1998
207
DECLARATION
Ministry of Finance
of 11 August 1998
on the calculation of the value of securities held in the mutual fund or investment fund
The Ministry of Finance provides pursuant to § 17 (4) of Act No. 248 / 1992 Coll., on Investment Companies and Investment Funds, as amended by Act No. 124 / 1998 Coll.:
(1) The Decree regulates the method of calculating the value of securities held in the mutual fund or in the capital fund (hereinafter referred to as "the calculation of the value of securities") on the date on which the calculation is made pursuant to Act No. 248 / 1992 Coll., as amended (hereinafter referred to as "the Act").
(2) For the purposes of this decree, the curricular market shall be the public market at which a special legal provision is established. 1)
Calculation of the value of the share traded on the domestic public market
(1) For the calculation of the value of the share, the published closing rate of the shares published by the Prague Stock Exchange, a. s. (hereinafter referred to as "the stock exchange ') shall be used for the day on which the calculation of the value is made, provided that the shares in the exchange rate market have been traded on that day.
(2) If, for the day on which the calculation is made, it is not possible to calculate the value of the share referred to in paragraph 1, the lowest rate on the closing rates of the share shall be used for that day published by the organiser of the extra-currency market on whose currency market the share was traded on that day.
(3) If the method of calculating the value of the share referred to in paragraph 1 or paragraph 2 cannot be used, the rate referred to in paragraph 1 or 2 shall be used for the calculation of the value, as last published in the 30 days preceding the date on which the value is calculated.
(4) If the method of calculating the value of the share referred to in paragraph 3 cannot be used, the last known value of the share reduced by 1% per day for 100 calendar days shall apply to the share which has not been traded on the public currency market for more than 30 days preceding the day on which the value is calculated.
(5) The provisions of paragraphs 1 to 4 shall not apply where a public proposal for a contract for the purchase of publicly traded shares has been made pursuant to a special legislature2) and the price of the share in the draft is higher than the price calculated in accordance with paragraphs 1 to 4. In this case, the price indicated in the draft contract shall apply for the duration of the contract. 3)
Calculation of the value of the share sheet of the open holding fund
(1) For the calculation of the value of the share sheet of an open holding fund, the current value of the share sheet published by its issuer pursuant to Article 26 of the Act shall be used on the date on which the calculation is made; where the value of the unit sheet has not been published on that date, the value published last shall be used.
(2) Paragraph 1 shall not apply if an investment company which has issued a mutual fund has suspended the purchase of the mutual funds pursuant to Article 13 (4) of the Act or if the mutual fund referred to in Article 35d (1) (a) or (6) of the Act is cancelled or if the investment company which has issued the mutual fund has withdrawn pursuant to Article 34, 35a or 35b of the Act.
(3) For the calculation of the value of the unit sheet in the cases referred to in paragraph 2, the value determined by the investment company or investment fund with professional care (4) shall be used, indicating the reasons for the occurrence of the facts referred to in paragraph 2.
Calculation of the value of the bond
(1) For the calculation of the value of the bond without accrued interest, the centre between the purchase and sale price of the average reference prices declared by the exchange for the date on which the calculation of the value is made shall be used.
(2) The average price published by the Czech National Bank for the day on which the calculation of the value is made shall be used to calculate the value of the bond traded on the short-term bond market held in the Czech National Bank's register.
(3) For the calculation of the value of a bond the issuer of which does not pay the return on time or in full or does not pay the principal on time or in full, the value determined with professional care by the investment company or investment fund shall be used, but shall not be higher than 50% of the value determined in accordance with paragraph 1 or 2.
(4) If the value of the bond cannot be calculated in accordance with paragraph 1 or 2, the value determined by the investment company or investment fund with professional care shall be used, taking into account in particular the liquidity and yield of the bond.
Calculation of coupons, warrants and provisional certificates
(1) For the calculation of the value of the coupon payable and not yet paid, the yield determined by the issuer or the issue terms of the security shall be used.
(2) For the calculation of the coupon value of the bond's interest rate yield before its maturity, the aliquot interest income shall be used at the date on which the value is calculated.
(3) The value of the purchased option sheet shall be calculated using its market price. If the market price cannot be determined, the value determined by the investment company or investment fund with professional care shall be used.
(4) The amount corresponding to the value of the paid-up deposit, including the issue premium, shall be used to calculate the value of the provisional sheet.
Calculation of the value of a security traded on a foreign public market
(1) For the calculation of the value of a security not traded on the domestic public market but only on a foreign public market, the rate published for the day of calculation of its value on the foreign public market or the rate published by one of the generally accepted information systems publishing official exchange rates shall be used. For the purposes of this decree, a foreign exchange of securities or another foreign public market operator subject to national or similar supervision shall be considered as a public foreign market. The investment firm or investment fund shall determine, in agreement with the depositary, a foreign public market or an information system the published course of which will use (e.g. Bloomberg, Telerate, Reuters) in its calculation of the values of securities traded in a foreign public market.
(2) If the rate referred to in paragraph 1 cannot be determined for the day of calculation of the value of the security, the security rate published by another shall be used in advance in agreement with the depositary designated by the stock exchange or public market operator or by a generally accepted information system publishing official exchange rates.
(3) If the value of a security not traded on the domestic public market cannot be calculated in the manner determined in accordance with paragraph 1 or 2, the value determined with professional care by the investment company or investment fund shall be used.
(4) A security issued by a domestic issuer abroad denominated in foreign currency and not traded on the domestic market shall be valued in accordance with paragraphs 1 to 3.
(5) The value of the security traded only on the foreign public market is converted into domestic currency using the foreign exchange market exchange rate published by the Czech National Bank on the date of calculation of the value.
(6) For currencies whose exchange rate is not declared by the Czech National Bank, the conversion shall be applied through the US dollar exchange rate for that currency published by the central bank of the State where the currency is the legal tender.
Common provisions
(1) A zero value shall be used to calculate the value of the publicly available non-marketable security.
(2) A zero value shall be used to calculate the value of the security issued by the issuer for which bankruptcy has been declared or the application for bankruptcy for lack of assets has been rejected or a settlement procedure has been initiated or is in liquidation.
(3) If, at the time of professional care, the value determined in accordance with Articles 2 to 6 and 7 (1) and (2) is higher or lower than the price at which the security can be sold, another way of establishing the value of the security can be used to calculate the value of the security which is more appropriate in terms of the interests of the shareholders or shareholders of the fund. The reasons for another method of determining the value of the security must be recorded in writing.
(4) In order to calculate the value of the security pursuant to Articles 3 (3), 4 (3) and 4 (4), 5 (3), 6 (1) to (3) and 7 (3), the approval of the depositary is necessary. The agreed method of calculation may be changed only with the agreement of the depositary and provided that new facts have arisen that would alter the credibility of the agreed calculation.
(5) Where the depositary does not agree to the calculation of the value of the security or the method of calculation referred to in paragraph 2, it shall notify the investment firm or the investment fund and the Securities Commission without delay.
Making available calculated value of shares and bonds
The securities centre shall calculate the value of the securities on each working day. The calculated values are determined in the currency in which the security is traded. If the trading currency is the Czech koruna, the calculation of the value shall be made to two decimal places; where the security is traded in another currency, the calculation of the value shall be done with the accuracy used by the relevant public market operator for such data. The securities centre shall make available to investment firms, investment funds, fund depositories and other users a set of information containing:
(a) the value of shares traded on the domestic public market calculated in accordance with Article 2 on the basis of the documentation provided on a daily basis to the Securities Centre by the market operators in the scope, form and dates agreed with the Securities Centre, with the exception of Article 2 (5), the provisions of which are implemented by the fund manager or investment fund;
(b) the value of bonds traded on the domestic public market calculated in accordance with Article 4 on the basis of the documentation provided daily by the Securities Centre by the public market organisers and the Czech National Bank to the extent, form and terms agreed with the Securities Centre, with the exception of Article 4 (3) and (4), the provisions of which are implemented by an investment company or investment fund.
Repeal
The Order of the Ministry of Finance No. 224 / 1996 Coll., on the calculation of the value of securities held in the mutual fund or assets of the IF is hereby repealed.
Efficacy
This decree shall take effect on 1 September 1998.
Minister:
Mgr. Svoboda v. r.
1) Paragraph 6 (2) of Act No. 591 / 1992 Coll., on Securities, as amended by Act No. 152 / 1996 Coll.
2) Sections 183b (1) and 186a of Act No. 513 / 1991 Coll., Commercial Code, as amended by Act No. 142 / 1996 Coll.
3) Sections 183c and 186a (4) of Act No. 513 / 1991 Coll.
4) Article 17a of Act No. 248 / 1992 Coll., on Investment Companies and Investment Funds, as amended by Act No. 124 / 1998 Coll.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 207 / 1998 Coll., on the calculation of the value of securities held in the mutual fund or investment fund |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 01.09.1998 |
|---|---|
| Effective from | 01.09.1998 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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