Common use of Formation Cost and its Treatment Clause in Contracts

Formation Cost and its Treatment. 14.3.1 All expenses incurred in connection with the incorporation, establishment and registration of the Fund (formation cost) as per Regulations, shall be reimbursable by the Fund to the Management Company subject to audit of expenses. The said costs shall be amortized over a period of not less than five years or within maturity date of the fund if it has life of less than five years. 14.3.2 The Formation Cost shall be reported by the Management Company to the SECP and the Trustee giving their break-up under separate heads, as soon as the distribution of the Units is completed. 14.3.3 Formation Cost shall be charged to the allocation plan(s) launched at the time of the Fund Launch, as per the Plans relative AUM size to that of the total Funds AUM and shall not exceed such limits as specified in the Regulations or directives issued thereunder.

Formation Cost and its Treatment. 14.3.1 All expenses incurred in connection with the incorporation, establishment and registration of the Fund (formation cost) as per Regulations, shall be reimbursable by the Fund to the Management Company subject to audit of expenses. The said costs shall be amortized over a period of not less than five years or within maturity date of the fund if it has life of less than five years. 14.3.2 The Formation Cost shall be reported by the Management Company to the SECP and the Trustee giving their break-up under separate heads, as soon as the distribution of the Units is completed. 14.3.3 Formation Cost shall be charged to the allocation plan(s) launched at the time of the Fund Launch, as per the Plans relative AUM size to that of the total Funds AUM and shall not exceed such limits as specified in the Regulations or directives issued thereunder.