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Index Change Advice - 20151027 FTSE JSE Ground Rules Update
FTSE/JSE Africa Index Series
Ground Rule Update
27 October 2015
FTSE/JSE announces the following Ground Rule updates which will take immediate effect.
The SA Resources Sector definition change will take effect with the December 2015 Quarterly Review.
6.2 Secondary Lines
Existing Rule:
6.2.1 Where there are multiple lines of equity capital in a company, all are included and priced
separately, provided that:
The line passes all investability screens.
The secondary line’s full market value (i.e. before the application of any investability weightings) is
greater than 25% of the full market capital of the company’s main line. Should the market value of a
secondary line that is already a constituent of the Index Series fall below 20% at the next review, the
secondary line is deleted from the index.
6.2.2 For the purposes of the FTSE/JSE Africa Index Series, companies with an approved dual listed
structure are treated as secondary lines of a single entity.
6.2.3 Where a company's shares are issued partly, or nil, paid and the call dates are already
determined and known, the market price will, for the purposes of calculating its market
capitalisation, be adjusted so as to include all such calls (i.e. the fully paid price).
New Rule:
6.2.1 Where there are multiple lines of equity capital in a company, all are included and priced
separately, provided that they pass index eligibility screens in their own right.
? All partly-paid classes of equity are priced on a fully-paid basis if the calls are fixed and
are payable at known future dates. Those where future calls are uncertain in either
respect are priced on a partly-paid basis.
8.3 New Issues
Existing Rule:
8.3.1 If, in the view of the FTSE/JSE Advisory Committee, a new issue is so large (i.e. its full
market capitalisation amounts to 1.0% or more of the full capitalisation of the FTSE/JSE All-
Share Index, before the application of individual constituent investability weightings) that the
effectiveness of the index as a market indicator would be significantly and adversely affected
by its omission, the FTSE/JSE Advisory Committee will normally decide to include the new
issue as a constituent of the FTSE/JSE Africa Index Series that it qualifies for after the close
of business on the first day of official trading. In all cases, advance notification confirming the
timing of the inclusion of the new constituent will be given accordingly. The security, which is
the lowest ranking constituent of the index, will be selected for removal and related indices
adjusted in accordance with Rule 7.1. The fast entry rule is not applicable to the FTSE/JSE
Specialist Property Indices and also not to any share that is classified as foreign, for index
purposes.
New Rule:
8.3.1 Where a company, whether an existing constituent or not, undertakes an Initial Public
Offering of a new equity security, that security will be eligible for fast entry inclusion to the
FTSE/JSE Africa Index Series if its full market capitalisation amounts to 1.0% or more of the
full capitalisation of the FTSE/JSE All-Share Index, before the application of individual
constituent investability weightings) FTSE/JSE will normally decide to include the new security
as a constituent of the FTSE/JSE Africa Index Series that it qualifies for after the close of
business on the fifth day of official trading. In all cases, advance notification confirming the
timing of the inclusion of the new constituent will be given accordingly. The security, which is
the lowest ranking constituent of indexes with a fixed number of constituents, will be selected
for removal and related indexes adjusted in accordance with Rule 7.1. The fast entry rule is
not applicable to the FTSE/JSE Specialist Property Indexes and also not to any share that is
classified as foreign, for index purposes. In the event of the fifth day of trading being in close
proximity to an index review, FTSE Russell may use its discretion to include a fast entrant at
the index review date following advance notice.
Definition Change for the SA Resources Sector
This change will take effect with the December 2015 Quarterly Review.
Existing Definition
The current SA Resources sector incorporates companies classified in the Industry Classification
Benchmark (ICB) sectors Oil & Gas Producers (0530) and Mining (1770).
New Definition
The new SA Resources sector incorporates companies classified in the Industry Classification
Benchmark (ICB) industries Oil & Gas (0001) and Basic Materials (1000).
For further information or general enquiries please contact us at info@ftse.com or indices@jse.co.za
or call:
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JSE Limited: Tel: +27 11 520 7137
Alternatively please visit our website at www.ftse.com or www.ftsejse.co.za
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