(1) The Commission shall not grant a licence to any company to operate as a mutual fund company unless the Commission is satisfied that-

(a) if an invitation is made to the public to subscribe for its shares, the price at which the shares will be offered will be based on the net value of the company's assets at the time of the offer with no addition except for a reasonable service charge;

(b) the company will at all times repurchase the shares from the holder at a price based on the net value of its assets at the time of the repurchase without any deduction other than a reasonable service charge, provided that where the shares of the mutual fund company are to be listed on an approved stock exchange, the Commission may waive or modify the requirements of this paragraph;

(c) a manager and custodian for the scheme have been appointed by the directors;

(d) the manager is a company incorporated in Ghana and is separate from and independent of the custodian; and

(e) the custodian being a bank or an insurance company or a wholly owned subsidiary of either of them has and maintains the required minimum paid up capital.

(2) The licence may be subject to such other conditions as the Commission may specify. [As substituted by Securities Industry (Amendment) Act, 2000 (Act 590) s. 10]