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Index Change Advice - 20151221 FTSE JSE Ground Rules Update Suspensions
FTSE/JSE Africa Index Series and
Ground Rule Update - Suspended Companies Ground Rule Change
18 December 2015
At the December 2015 meeting the FTSE Russell Governance Board approved the following revised
treatment of suspended companies. The revised treatment will be effective from 21 December 2015.
Current Rule 8.4.1:
If a constituent is suspended, FTSE/JSE will determine its treatment as follows:
* If a constituent is declared bankrupt without any indication of compensation to shareholders, the
last traded price will be adjusted down to zero value and it will subsequently be removed from
the index.
* If there is no accompanying news when a constituent is suspended, FTSE/JSE will normally allow
it to remain in the index for up to 20 business days at its last traded price before determining
whether to delete it at zero value or allow it to remain in the index.
* If a constituent is temporarily suspended but expected to recommence trading pending a
restructuring or a corporate event, for example a merger or acquisition, it may remain in the
index at its last traded price for up to 20 business days.
* If it continues to be suspended at the end of that period, it will be subject to review and a
decision will be taken to either allow the constituent to remain in the index for a further period of
up to 20 business days or to remove it at zero value. This procedure will be repeated at
successive 20 business day intervals thereafter until either trading recommences or a decision is
taken to remove it from the index.
* If a constituent has been removed from the index at zero value and trading is subsequently
restored, it will be treated as a new issue for the purposes of index eligibility.
New Rule 8.4.1:
If a constituent is suspended, FTSE/JSE will determine its treatment as follows:
* If a constituent is declared bankrupt without any indication of compensation to shareholders, the
last traded price will be adjusted down to zero value and it will subsequently be removed from
the index.
* If there is no accompanying news when a constituent is suspended, FTSE/JSE will normally allow
it to remain in the index for up to 20 business days at its last traded price before determining
whether to delete it at zero value or allow it to remain in the index.
* If a constituent is temporarily suspended but expected to recommence trading pending a
restructuring or a corporate event, for example a merger or acquisition, it may remain in the
index at its last traded price for up to 20 business days.
* If it continues to be suspended at the end of that period, it will be subject to review and a
decision will be taken to either allow the constituent to remain in the index for a further period of
up to 20 business days or to remove it at zero value. This procedure will be repeated at
successive 20 business day intervals thereafter until either trading recommences or the
suspension period reaches 80 business days.
* If the suspension period reaches 80 business days and the constituent does not resume
trading within a further 40 business days and has not given any firm date for the
resumption of trading, then it will be removed at zero value at the next index review.
* If a constituent has been removed from the index and trading is subsequently restored, it will
only be re-considered for inclusion after a period of 12 months from its deletion. For the
purposes of index eligibility it will be treated as a new issue.
An updated version of the FTSE/JSE Ground Rules is now available on the JSE website.
For further information or general enquiries please contact us at info@ftse.com or indices@jse.co.za or call:
Client Services in UK: Tel: +44 (0) 20 7866 1810
Client Services in EMEA: Tel: +44 (0) 20 7866 1810
Client Services in US: New York: (Domestic) + 1 888 747 FTSE (3873) / (International): +1 212 314 1139
Client Services in Asia Pacific: Hong Kong: + 852 2164 3333 Australia:(Domestic Toll-Free) + 1800 653 680 / (International) + 61
(2) 9293 2864 Japan + 81 (3) 3581 2764
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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Date: 18/12/2015 05:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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