FTSE Ground Rules - Free Float 21 September 2011 | |||||||||||||
In order to provide further transparency in the determination of free float, please note the following clarifications to Section 4.2 of the FTSE TWSE Taiwan Index Series Ground Rules with immediate effect..... Existing Rule........ Free float restrictions include: a) trade investments in an index constituent either by another constituent (i.e., cross-holdings) or non-constituent company or entity, b) significant long term holdings by founders, their families and/or directors, c) employee share schemes (if restricted), d) government holdings, e) portfolio investments subject to a lock in clause, for the duration of that clause. The following are not considered as restricted free float: a) portfolio investments, b) nominee holdings (including those supporting ADRs & GDRs), unless they represent restricted free float. c) holdings by investment companies. New Rule....... Free float restrictions include: Shares directly owned by State, Regional, Municipal and Local governments (excluding shares held by independently managed pension schemes for governments). Shares held by Sovereign Wealth Funds where each holding is 10% or greater. If the holding subsequently decreases below 10%, the shares will remain restricted until the holding falls below 7%. Shares held by directors, senior executives and managers of the company, and by their family and direct relations, and by companies that they control. Shares held within employee share plans. Shares held by public companies or by non-listed subsidiaries of public companies. Shares held by founders, promoters, former directors, founding venture capital and private equity firms, private companies and individuals (including employees) where the holding is 10% or greater. If the holding subsequently decreases below 10%, the shares will remain restricted until the holding falls below 7%. All shares where the holder is subject to a lock-in clause (for the duration of that clause). Shares held for publicly announced strategic reasons, including shares held by several holders acting in concert. For clarity, holdings not considered as restricted free float include: Portfolio holdings (such as pension and insurance funds) Nominee holdings (unless they represent restricted free float ) Holdings by investment companies ETFs An updated version of the FTSE TWSE Taiwan Index Series Ground Rules can be accessed via the FTSE website. For further information or general enquiries please contact us at info@ftse.com or Res-Dev@tse.com.tw or call:
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