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Dec 18 2018 onwards

IFR 6.13.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) A FundG is an Islamic Exchange Traded FundG or Islamic ETFG if it:

(a) is constituted as an Open-ended Public Fund;
(b) has its UnitsG available for trading throughout the day on an exchange that meets the criteria in (2);
(c) has at least one market maker (Authorised ParticipantG ) who:
(i) purchases and redeems 'creation UnitsG ' of the FundG from the Fund ManagerG ; and
(ii) is prepared to buy and sell UnitsG of the FundG throughout the day on the relevant exchange; and
(d) meets the Shari'a related requirements in this chapter.

(2) An exchange meets the requirement in (1)(b) if it is:

(a) operated by an Authorised Market InstitutionG ;
(b) regulated by a Financial Services RegulatorG in a jurisdiction that is a signatory to the IOSCO Multilateral Memorandum of Understanding for sharing information; or
(c) regulated by a Financial Services RegulatorG in a jurisdiction which has entered into a bilateral memorandum of understanding with the DFSA for sharing information.

(3) A Fund ManagerG , or any PersonG making an OfferG of a UnitG of FundG or otherwise marketing a FundG , must not describe the FundG in its offer document or marketing material as an "Exchange Traded FundG " (or "ETFG ") or otherwise hold out the FundG as being an Exchange Traded FundG or ETFG , unless the FundG meets the criteria in (2).

(4) The Fund ManagerG of an Islamic ETFG must ensure that the FundG has an investment objective and strategy, which is to track the performance of a specified index or benchmark as specified in its ProspectusG .

Derived from DFSA RM220/2018 (Made 22nd February 2018). [VER13/12-18]