Regulation 38

Where a member has purchased any securities under Part 2 or 4 and wishes to withdraw the net realised profits arising from such purchase, the member must apply to the Board to withdraw the net realised profits within one year from the end of each accounting year in accordance with this regulation.

An application made by a member under paragraph (1) may be approved subject to such terms, conditions and procedures as the Board may impose.

The net realised profits of each accounting year are to be calculated in accordance with the following formula:GRA = A + B – C – D – E – Fwhere in relation to that accounting year — GRAis the gross realised amount; Ais the sale or disposal price of the securities; Bis the total amount of dividends, interest and income received prior to the sale or disposal of the securities, interest earned in the CPF Investment Account and the Share Profit Account and any net realised profits carried forward from the previous accounting year; Cis the total sum of the costs (including weighted average cost, where applicable) of investment in the securities sold or disposed of; Dis the total amount of expenses, charges, fees incurred on the purchase of the securities and on the sale or disposal of such securities; Eis the whole or such part (as the Board may determine) of the interest that would have been payable on the available amount withdrawn under these Regulations, had the member not withdrawn that amount from the member’s ordinary account; and Fis the net realised loss carried forward from the previous accounting year.

Where the gross realised amount is positive, it is deemed to be the net realised profits, and where the gross realised amount is negative, it is deemed to be the net realised loss.

A member is, before 1 October 2003, entitled to withdraw the net realised profits arising from the purchase of securities under Part 2 or 4 of any accounting year in the following accounting year.

A member is entitled to withdraw only 50% of the net realised profits (including accumulated profits) of the accounting year commencing on 1 October 2001.

A member must not, on or after 1 October 2003, withdraw any net realised profits arising from the purchase of securities under Part 2 or 4.

If a member does not apply under this regulation to withdraw the net realised profits for any accounting year, the profits for that year must be carried forward to the succeeding accounting year as accumulated profits.

Where the member has incurred a net realised loss for any accounting year, the loss must be carried forward to the succeeding accounting year.

This regulation does not apply to securities purchased or acquired before 1 October 1993.

A member who has applied for a loan, or is receiving moneys, from the Government pursuant to any approved loan scheme under section 14A of the Act is not permitted to withdraw any net realised profits under this regulation.

A member who has purchased securities under Part 3 is not entitled to withdraw any profits arising from such purchase.