FTSE announces following changes to FTSE SET Index Series Ground rule:
Current Rule
6.1 New Issues
6.1.1 If, in the view of the FTSE SET Advisory Committee, a new issue is so large (i.e. its full market capitalisation amounts to 2% or more of the FTSE SET All-Share Index, before application of individual constituent investability weightings) that the effectiveness of the index as a market indicator would be significantly and adversely affected by its own omission, FTSE will normally decide to include the new issue as a constituent of the FTSE SET Large Cap Index and remaining FTSE SET Indices 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 according. The security which is the lowest ranking constituent of the index will be selected for removal and placed in the Reserve List for the FTSE SET Large Cap Index.
New Rule
6.1 New Issues
6.1.1 If, in the view of the FTSE SET Advisory Committee, a new issue is so large (i.e. its full market capitalisation amounts to 2% or more of the FTSE SET All-Share Index, before application of individual constituent investability weightings) that the effectiveness of the index as a market indicator would be significantly and adversely affected by its own omission, FTSE will normally decide to include the new issue as a constituent of the FTSE SET Large Cap Index and remaining FTSE SET Indices that it qualifies for after the close of business on the fifth day of trading and eligibility will be determined using the closing price on the first day of trading. In all cases, advance notification confirming the timing of the inclusion of the new constituent will be given according. The security which is the lowest ranking constituent of the index will be selected for removal and placed in the Reserve List for the FTSE SET Large Cap Index. In the event of the fifth day of trading is in close proximity to an index review, FTSE may use its discretion to include a fast entrant at the index review date following advance notice.
An updated version of the FTSE SET Index Series Ground Rules is now available on the FTSE website, www.ftse.com/Indices/ FTSE_SET_Index_Series
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