Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)

Board Notices

Determination of Securities, Class of Securities, Assets or Classes of Assets that may be included in a portfolio of a Collective Investment Scheme in Securities and the manner in which and the limits and conditions subject to which Securities or Assets may be so included

Chapter V : Inclusion of Financial Instruments in a Portfolio

15. Exposure limits for listed financial instruments
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(1) The sum of the effective exposures of listed financial instruments to be maintained in terms of this Chapter, together with the market value of all the physical underlying assets in the portfolio, may not exceed 100 percent of the market value of the portfolio.

 

(2) The effective exposure to listed financial instruments based on any specific underlying asset, which is not an index or basket of securities, together with the market value of any physical holding of that specific underlying asset, may not exceed the limitations laid down in paragraph 3(1) or Table 1, as applicable, of Chapter I of this Notice.

 

(3) For the purposes of this paragraph, the provisions of paragraph 3(1) (b) or Table 1, to the extent applicable, of Chapter I of this Notice in respect of breaches, which are due to appreciations or depreciations of the market value of the relevant securities, or an amalgamation, cession, transfer or take-over in terms of section 99 of the Act, apply with the necessary changes.