[Federal Register Volume 65, Number 22 (Wednesday, February 2, 2000)]
[Notices]
[Pages 5002-5003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2184]


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SECURITIES AND EXCHANGE COMMISSION


Existing Collection; Comment Request

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of the Filings and Information Services, 
Washington, DC 20549.
    Extension: Form N-23C-1, SEC File No. 270-230, OMB Control No. 
3235-0230.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501-3520), the Securities and Exchange 
Commission (the ``Commission'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this existing collection of information to the Office of 
Management and Budget (``OMB'') for extension and approval.
    Section 23(c) of the Investment Company Act of 1940 [15 U.S.C. 80a-
23(c)] (``Investment Company Act'' or ``Act'') prohibits a registered 
closed-end investment company (``closed-end fund'') from purchasing any 
security it

[[Page 5003]]

issues on a securities exchange, pursuant to tender offers, or under 
such other circumstances as the Commission may permit by rules or 
orders designed to ensure that purchases are made in a manner that does 
not unfairly discriminate against any holders of the securities to be 
purchased. Rule 23c-1 [17 CFR 270.23c1] under the Act permits a closed-
end fund that meets certain requirements to repurchase its securities 
other than on an exchange or pursuant to a tender.
    A registered closed-end fund that relies on rule 23c-1 may purchase 
its securities for cash if, among other conditions set forth in the 
rule, certain conditions are met:
     Payment of the purchase price is accompanied or preceded 
by a written confirmation of the purchase;
     The purchase is made at a price not above the market 
value, if any, or the asset value of the security, whichever is lower, 
at the time of the purchase; and
     If the security is stock, the issuer has, within the 
preceding six months, informed stockholders of its intention to 
purchase stock of the class by letter or report addressed to all the 
stockholders of the class.
    In addition, the issuer must file with the Commission, on or before 
the tenth day of the month following the date in which the purchase 
occurs, two copies of Form N-23C-1. The form requires the issuer to 
report all purchases it has made during the month, together with a copy 
of any written solicitation to purchase securities under rule 23c-1 
sent or given during the month by or on behalf of the issuer to ten or 
more persons.
    The purpose of rule 23c-1 is to protect shareholders of closed-end 
funds from fraud in connection with the repurchase by funds of their 
own securities. The purpose of the rule's requirement that the fund 
file Form N-23C-1 with the Commission is to allow the Commission to 
monitor funds' repurchase of securities as well as any written 
solicitation used by the fund to effect those repurchases, and to make 
that information available to the public. Investors may seek this 
information when determining whether to invest in certain funds.
    The requirement to file Form N-23C-1 applies to a closed-end fund 
only when the fund has repurchased its securities. If the information 
provided in the form were collected less frequently than a month after 
repurchases occur, the Commission and investing public would lack 
current information about closed-end funds that repurchase their own 
securities.
    Commission staff estimates that each year approximately 19 closed-
end funds use the repurchase procedures under rule 23c-1, and that 
these funds file a total of 115 forms each year.\1\ The number of forms 
filed by each fund ranges from 1 to 12 depending on the number of 
months in which the fund repurchases its securities under rule 23c-1. 
Commission staff estimates that each response requires 1 burden hour to 
prepare and file Form N-23C-1 with a copy of any written solicitation 
to purchase securities under the rule (if necessary). Commission staff 
estimates each burden hour consists of 15 minutes of professional time 
and 45 minutes of support staff time.\2\ Commission staff further 
estimates that each of the 19 funds expends between 1 and 12 hours 
annually in filing Form N-23C-1. The total number annual burden of the 
rule's paperwork requirements is estimated to be 115 hours.
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    \1\ These estimates are based on Form N-23C-1 filings for 1999.
    \2\ The burden hour estimates are based upon consultation with 
lawyers and accountants familiar with the practices of fund boards 
and the staff of investment advisers.
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    These estimates represent an increase of 92 hours from the prior 
estimate of 23 hours. The increase results primarily from the increase 
in the number of funds relying on the rule to purchase their 
securities. At the time of the last submission the Commission estimated 
that 4 funds filed a total of 23 Form N-23C-1s annually with the 
Commission (with each fund filing between 1 and 12 forms during the 
year). In 1999, 19 funds filed 115 forms with the Commission.
    The estimate of average burden hours is made solely for the 
purposes of the Paperwork Reduction Act. The estimate is not derived 
from a comprehensive or even a representative survey or study of the 
costs of Commission rules and forms.
    Written comments are invited on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information has practical 
utility; (b) the accuracy of the Commission's estimate of the burdens 
of the collections of information; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burdens of the collections of information on respondents, 
including through the use of automated collection techniques or other 
forms of information technology. Consideration will be given to 
comments and suggestions submitted in writing within 60 days of this 
publication.
    Please direct your written comments to Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, NW, Washington, DC 
20549.

    Dated: January 24, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-2184 Filed 2-1-00; 8:45 am]
BILLING CODE 8010-01-M