Section 127
of Securities Markets Regulations, 2015
Section 127
Where the property of a body corporate or of another collective investment scheme is transferred to a collective investment scheme, or to the operator for the account of the c;ollective investment scheme, or to the trustee to hold on trust for the unit holders, in consideration of the issue of units in the collective investment scheme to unit holders in that body corporate or in that other collective investment scheme, the operator, or in the case of an investment trust, the trustee as the successor in title to the property transferred, may pay out of the collective investment scheme property any liability arising after the transfer which, had it arisen before the transfer, could properly have been paid out of the property transferred, but only if -
(a)
there is nothing in the constitution of the collective investment scheme expressly forbidding the payment; and
(b)
the operator is of the opinion that proper provision was made for meeting such liabilities as were known or could reasonably have been anticipated at the time of the transfer.