[Federal Register Volume 65, Number 68 (Friday, April 7, 2000)]
[Notices]
[Pages 18384-18385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8617]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

    Upon Written Request Copies Available From: Securities and Exchange 
Commission, Office of 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'') has submitted to the Office of 
Management and Budget (``OMB'') a request for extension and approval on 
the collection of information discussed below.
    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'' or ``fund'') from 
purchasing any security it issues except 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 270.23c-1] 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 in 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 requirements to file Form N-23C-1 applies to a closed-end fund 
only when the fund has repurchased its securities. If the information 
provided

[[Page 18385]]

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 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.
    Compliance with the collection of information requirements of the 
rule and form is necessary to obtain the benefit of relying on the rule 
and form. An agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a currently valid control number.
    Please direct general comments regarding the above information to 
the following persons: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 3208, New Executive Office Building, 
Washington, DC 20503; and (ii) Michael E. Bartell, Associate Executive 
Director, Office of Information Technology, Securities and Exchange 
Commission, 450 5th Street, NW, Washington, DC 20549. Comments must be 
submitted to OMB within 30 days of this notice.

    Dated: March 30, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-8617 Filed 4-6-00; 8:45 am]
BILLING CODE 8010-01-M