Changes to the Ground Rules for the Management and Calculation of FTSE/ASE 20 and FTSE/ASE Mid 40 Indices.
The Advisory Committee of FTSE/ASE indices, constituted by executives of both ASE and FTSE, President of the Athens Stock Exchange, announces the following changes to the Ground Rules for the Management and Calculation of FTSE/ASE 20 and FTSE/ASE Mid 40 Indices: Download the english version of the file in - change in section 4.2.1., concerning the investibility screens of shares concerning the free float percentage. More specifically, it was decided for a sixth point to be added as follows: ?Portfolio investments subjected to binding provision, for the duration of this provision?. - substitution of section 7.1.1., concerning the delisting and replacement of shares on the indices as follows: ? If a constituent is delisted or ceases to have a firm quotation or is subject to a takeover offer which has been unconditionally accepted or has · in the opinion of the Chairman and the Auditor of the Advisory Committee ( or their nominated deputies)- ceased to be a viable constituent as defined by the Ground Rules, it will be removed from the list of constituents and replaced by the highest ranking non constituent security eligible as at the close of business two days prior to the effective day of the deletion?. - Following from the above paragraph, substitution of section 7.1.3. as follows: ?When a vacancy occurs in the FTSE/ASE 20, it will be filled by the highest ranking eligible non-constituent. Any subsequent vacancy in the FTSE/ASE Mid 40 will likewise be filled by the highest ranking eligible non-constituent, as at the close of business two days prior to the effective date of the deletion, ranking below 20th position?. - Substitution of section 7.2.1., concerning mergers, restructuring and complex takeovers as follows: ?If the effect of a takeover is that one constituent is absorbed by another constituent within the same index, the resulting company will remain a constituent of the appropriate index and a vacancy will be created. This vacancy will be filled by the highest ranking non-constituent security eligible as at the close of business two days prior to the replacement being required. - Following from the above paragraph, replacement of section 7.2.2., as follows: ?If a constituent in the FTSE/ASE 20 Index is absorbed by a constituent in the FTSE/ASE Mid 40 Index, the resulting company is eligible for inclusion as the replacement constituent for the FTSE/ASE 20 Index. The replacement constituent will be the highest ranking non-constituent of the FTSE/ASE 20 Index eligible as at the close of business two days prior to the replacement being required?. The remaining paragraph of section 7.2.2. is as it stands. - Following from the above paragraph, replacement of section 7.2.3. as follows: ?If a constituent company is taken over by a non constituent company, the original constituent will be removed and replaced by the highest ranking non-constituent eligible as at the close of business two days prior to the replacement required?. The remaining paragraph is as it stands. - Completion at the end of section 7.4.1., concerning suspension of dealing as follows: ?The replacement security will be the highest ranking non-constituent eligible as at the close of business two days prior to the replacement being required?. - Replacement of section 4.3., concerning eligible securities as follows: ?Liquidity- Securities (other than new issues added in accordance with rule 7.3)which do not have a minimum trading record of 30 working days since the commencement of official non-conditional trading, which do not trade on at least half of the business days in each of the preceding calendar months and whose value of trading turnover does not exceed at least 10% of the market value of the company per annum (or in the case of eligible new issues, on a pro rata basis) will not be eligible for inclusion in the index?. Finally, the following changes will be implemented from the next review, taking into consideration data as at the close of business on the last working day of March 2001: - substitution of section 4.2.3., concerning investibility screens of constituents, as follows: ?adjustment of free float will be applied in accordance with the following limits. a) free float less than or equal to 15% = ineligible b) free float greater than 15% but less than or equal to 20% = 20% c) free float greater than 20% but less than or equal to 30% = 30% d) free float greater than 30% but less than or equal to 40% = 40% e) free float greater than 40% but less than or equal to 50% = 50% f) free float greater than 50% but less than or equal to 75% = 75% g) free float greater than 75% = 100% A constituent's free float will be reviewed and adjusted, if necessary, following a corporal event. If the corporal event includes a corporal action which affects the index, any change in free float will be implemented at the same time as the corporate action. If there is not a corporate action, the change in free float will be applied as soon as practicable after the corporal change, in accordance to rule 4.2.6. below. - substitution of section 4.2.6., concerning periodic review of constituents, as follows: ?Following the application of an initial free float restriction, a constituent's free float will only be changed if its actual free float is more than 5 percentage points over the minimum or 5 percentage points below the maximum of an adjacent new band. This 5 percentage points threshold does not apply if the change is greater than 10 percentage points for the bands between 20% and 50% and 25 percentage points for the bands between 50% and 100% or to the 15% limit in 4.2.4.(a)?. - substitution of section 5.1., as follows: ? The largest 20 securities valued by full market capitalization, which have passed the investibility screens, will comprise the FTSE/ASE 20 Index?. - Substitution of section 5.2., as follows: ?The next largest 40 securities valued by full market capitalization, which have passed the investibility screens, will comprise the FTSE/ASE Mid 40 Index?. - Substitution of section 6.2.4., concerning periodic review of constituents, as follows: ?All securities are ranked by descending market capitalization?.
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