Unit Trusts Act, 1972

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Prohibition of certain transactions and making of certain profits by managers under unit trust schemes.

14.—(1) Neither a body corporate that is a manager under a unit trust scheme or is a subsidiary or a holding company of the manager or is a subsidiary of the holding company of the manager nor a director or person engaged in the management of such a body corporate shall carry out transactions for itself or himself, or make a profit for itself or himself from transactions, in any assets held under the scheme.

(2) A body corporate that is a manager under a unit trust scheme or is a subsidiary or a holding company of the manager shall not—

(a) borrow money on behalf of the scheme for the purpose of acquiring securities or other property for the scheme, or

(b) lend money that is subject to the trusts of the scheme to a person to enable him to purchase units of the scheme, or

(c) mortgage or charge, or impose any other incumbrance on, any securities or other property subject to the trusts of the scheme.

(3) A person who contravenes subsection (1) of this section shall be guilty of an offence.