ArmInfo. The number of participants in non-public investment funds will be increased. The RA government approved amendments to the Law "On Investment Funds" at its April 9 meeting.
As noted in the justification for the draft law, statistics from recent years show that non-public investment funds have demonstrated an active growth trend both in the number of registered companies and in their key performance indicators. Thus, between 2020 and 2024, their number increased from 36 to 112. However, despite the stable growth trends, certain legislative obstacles exist that limit the normal development of non-public investment funds and require their activities to be brought into compliance with internationally recognized norms and regulations. Currently, according to current legislation, the number of participants in non-public funds cannot exceed 49. If the number of participants exceeds this figure, the non-public fund is required to re-register as a public fund within 90 calendar days or reduce the number of its participants. Otherwise, it is subject to liquidation by a court decision. Furthermore, non-public funds are prohibited from placing their issued securities through a public offering, including an offer addressed exclusively to an unspecified number of qualified investors. A proposed amendment to the law would permit non-public funds to have 99 participants, as well as the right to place securities to more than 100 persons who are not qualified investors.
The goal of the project, as emphasized in the justification, is to create legal conditions for attracting investment into the country's investment funds and expand the opportunities for economic entities in Armenia to raise capital.
