| Field | Value | Source text | Reading (model) |
|---|---|---|---|
| G1 Scope, precedence and principles · 6 fields | |||
| Nonstandard event handling | Deviant or nonstandard corporate actions are handled by the Index Administration team using industry best practices, or by custom client treatment where requested. | However, there might be special handling of corporate actions which are deviant from the standard list below and will be handled the Index Administration team in line with the best practices of the industry and the most transparent manner.Open p.4 ↗ |
Special or nonstandard corporate actions may be handled outside the standard list transparently according to industry best practices or client-recommended custom treatment. |
| Divisor adjustment | The divisor is adjusted for corporate-event changes in price adjustment factors and share adjustment factors so that the index series remains continuous. | It is a way to maintain the continuity of the Index series.Open p.4 ↗ |
The divisor compensates for corporate events that alter a constituent's market capitalization and is adjusted through price and share adjustment factors to maintain index continuity. |
| Covered indices | Equity indices administered by Mirae Asset Global Index Private Limited | The intent of this document is to record standard treatment of Corporate A ctions in Equit ies as handled by Mirae Asset Global Ind ex Pvt Ltd (Index Provider) during the administration of their indices.Open p.4 ↗ |
The guidebook records the standard corporate-action treatment applied to equities in indices administered by Mirae Asset Global Index Private Limited. |
| Precedence rule | Index-specific methodology provisions prevail over these general corporate-action rules. | Where the applicable Index Methodology contains specific provisions relating to trading suspensions, such provisions shall prevai l.Open p.19 ↗ |
Where an applicable index methodology contains specific provisions for an event such as a trading suspension, those provisions prevail over this guidebook. |
| Principles | index continuity, Consistency, Transparency, Representativeness, Investability, index integrity, industry best practices | handled the Index Administration team in line with the best practices of the industry and the most transparent manner.Open p.4 ↗ |
Corporate-action handling is intended to follow industry best practices transparently and preserve index continuity, consistency, representativeness, investability, and integrity. |
| Administrator | Mirae Asset Global Index Private Limited | Mirae Asset Global Ind ex Pvt Ltd (Index Provider) during the administration of their indices.Open p.4 ↗ |
The index provider and administrator issuing the guidebook is Mirae Asset Global Index Private Limited. |
| G4 Corporate events · 13 fields | |||
| Special cash dividend or capital payment | Gross total return index: PAF reflects the full special cash dividend; SAF=1; Net total return index with tax: PAF reflects the special dividend net of applicable withholding tax; SAF=1; Net total return index without tax: PAF reflects the full special dividend; SAF=1; Price return index: PAF reflects the special cash dividend or capital payment; SAF=1; Capital payment tax: no tax applied for capital payments or asset distributions | If this is a capital payment or asset distribution payout then taxes will not be applied.Open p.7 ↗ (not found verbatim in the PDF) |
Special cash dividends adjust gross, net, and price return index PAFs; capital payments and asset distributions are not taxed and also adjust the price return index. |
| Japanese and korean dividend adjustment | Initial treatment: use the dividend amount available on the ex-date; Post confirmation treatment: apply the difference between the ex-date amount and final confirmed amount on a Dividend Implementation Date; Schedule: weekly on Fridays; Historical revision: No; Membership condition: the company must have been an index constituent on the ex-date, regardless of current membership; Effective date: 2024-08-01 | On e x - date Mirae Asset Global Indices considers the available dividend amoun t at that time for index calculation .Open p.6 ↗ |
For Japanese and Korean dividends, the amount available on the ex-date is used, later dividend differences are applied on weekly Friday Dividend Implementation Dates without revising history, and ex-date constituent membership determines eligibility. |
| Stock dividend of different entity | Paf: parent closing price minus the value of distributed shares of the other entity, divided by parent closing price; Saf: 1 | Scenario 2 : Company 𝑖 would announce a stock dividend of say 𝑚 shares of a different entity 𝑗 for every stock held by the investor with an ex - date of 𝑡 .Open p.9 ↗ (not found verbatim in the PDF) |
When a stock dividend consists of shares of a different entity, the parent price adjustment factor reflects the distributed value and the parent share adjustment factor remains 1. |
| Cash dividend | Price index: no adjustment; PAF=1 and SAF=1; Gross total return index: PAF reflects the gross cash dividend; SAF=1; Net total return index: PAF reflects the cash dividend net of withholding tax; SAF=1; Effective timing: ex-date; Share count change: No | From an Index treatment perspective, regular cash dividends do not affect the price return Index in any way However, we do see an adjustment in the prices of the Net Total Return Index and the Gross Total Return Index versions. The SAF remains the same in all cases.Open p.5 ↗ (not found verbatim in the PDF) |
Regular cash dividends do not affect the price return index, while gross and net total return indices adjust the price adjustment factor on the ex-date and the share adjustment factor remains 1. |
| Bonus and split | Stock dividend same company: Paf: 1/(1+m); Saf: 1+m; Bonus issue or stock split: Paf: 1/m; Saf: M; Reverse split or consolidation: Paf: M; Saf: 1/m; Timing: open of ex-date | The price and share adjustment factors will be updated to reflect this chang in the company stock at the open of ex - date 𝑡 as per below :Open p.9 ↗ |
Stock dividends, bonus issues, splits, and reverse splits adjust both price and share adjustment factors at the open of the ex-date according to the stated ratio. |
| Rights issue | Out of the money: no index adjustment; In the money: Paf: (P + m * subscription_price) / (P * (1+m)); Saf: 1+m; Condition: offer price compared with current market price | In such a scenario a rational investor will never exercise the right to buy as he can purchase at a discount from the open mark Hence no adjustment needed for the Index.Open p.12 ↗ (not found verbatim in the PDF) |
An out-of-the-money rights issue requires no adjustment, while an in-the-money rights issue adjusts the price and share adjustment factors for the discounted shares. |
| Other share changes | Share conversions generally require no index adjustment unless the methodology expressly avoids the converted share class; open-market buybacks are reflected through free float at the next rebalance, while tender-offer buybacks adjust PAF and SAF. | We do not have to make any adjustments to the Index unless the methodology explicitly mentions the avoidance of the converted share classOpen p.17 ↗ |
Share conversions are not adjusted absent an index-methodology rule, and buybacks receive no adjustment for open-market purchases but PAF and SAF adjustments for tender offers. |
| Merger acquisition | Merger into existing constituent: targets are removed and their share entitlement is added to the acquiring constituent; Merger into nonconstituent: targets are removed and proceeds are reinvested by adjusting the divisor; Acquisition rules: no adjustment when only the acquirer is in the index, merger treatment when acquirer and acquired company are both constituents, no adjustment if the acquired constituent continues trading and the acquirer is outside the index, delisting treatment if the acquired constituent ceases trading and the acquirer is outside the index | All target entities will cease to be a part of the Index and a corresponding adjustment is made to the acqui – constituent as followsOpen p.15 ↗ |
Mergers remove targets and either add share consideration to an existing acquirer or reinvest proceeds through the divisor; acquisition treatment depends on constituent status and whether trading continues. |
| Spin off | Default treatment: spin-off security is temporarily added at zero price at the open of the ex-date and removed after two days of regular trading; Initial divisor effect: no adjustment to parent price or index divisor when temporarily added; Late trading rule: remove at zero price if trading has not begun within 30 calendar days and listing information is unavailable; Nonstandard equity: no adjustment for warrants, convertible bonds, private entities or other non-standard equity instruments; Retention: possible only by Index Oversight Committee discretion or where the specific index methodology explicitly permits it | The spin - off security is temporarily added to all the indices, in which parent company is a constituent of, at zero price on the open of ex - date.Open p.14 ↗ |
A spin-off is temporarily added at zero price without changing the parent or divisor, then removed after trading begins; non-standard equity is a non-event and longer retention requires committee approval or index-methodology permission. |
| Suspension | Existing constituent: retain at last available price while resumption is reasonably expected; Review frequency: at least once every 10 trading days, with earlier reviews for material developments; Retained during rebalance: remain at last available price; new index shares implemented after resumption with at least two Index Business Days' notice; Announced deletion: defer deletion until trading resumes, then remove with at least two Index Business Days' notice; Announced addition: add with zero index shares until trading resumes, then implement shares with at least two Index Business Days' notice; Permanent suspension removal: remove at zero price with at least two Index Business Days' notice if resumption is unlikely | The Index Provider will conduct an initial review of suspended security following the commencement of the suspension and will subsequently review the status of the security at least once every 10 t rading d ays.Open p.19 ↗ |
Suspended constituents are generally retained at their last available price, reviewed at least every 10 trading days, and rebalance additions, deletions, or share changes are implemented after resumption with notice; securities unlikely to resume may be removed at zero price. |
| Delisting | A company moving to an ineligible exchange, becoming private, or otherwise delisting from an eligible exchange is removed from the index and proceeds are reinvested by adjusting the divisor. | If a situation arises, where the company stops being listed on the eligible exchange and is converted to a privately - owned company, then this is called as delisting of the stock and is treated as per Scenario 2 below.Open p.18 ↗ |
Delisting or transfer to an ineligible exchange causes removal from index constituents, with proceeds reinvested through a divisor adjustment. |
| Bankruptcy | Bankrupt company: remove from the index; Chapter 7: reviewed by the Index Oversight Committee for inclusion or exclusion; Chapter 11 bankruptcy protection: reviewed by the Index Oversight Committee for inclusion or exclusion; Liquidation: reviewed by the Index Oversight Committee for inclusion or exclusion | The index constituent will be dropped from the index if the company has become bankrupt .Open p.21 ↗ |
A bankrupt constituent is dropped from the index, while Chapter 7, Chapter 11 protection, or liquidation is reviewed by the Index Oversight Committee. |
| Transfer of listing | Eligible to eligible exchange: no index adjustment; Eligible to ineligible exchange: remove from the index and reinvest proceeds by adjusting the divisor | Scenario 1: Company 𝑖 changes its listing from an eligible exchange to another eligible exchange.Open p.18 ↗ |
A transfer between eligible exchanges requires no adjustment, while a transfer from an eligible to an ineligible exchange results in index removal and divisor reinvestment. |
Open points · 11Model-written, for reference
- 1No printed rulebook version label was found.
- 2No general effective date for the rulebook itself was found; only the Japan/Korea post-ex-date dividend treatment was stated to be effective from 1 August 2024.
- 3No treatment for new listings or IPO fast entry was found.
- 4No treatment for risk-warning securities or altered trading-status labels such as ST was found.
- 5No standalone treatment for capital reductions other than special cash dividends or capital payments was found.
- 6Not coveredG2 Calculation and publication: not covered by this edition
- 7Not coveredG3 Prices and market data: not covered by this edition
- 8Not coveredG5 Shares, free float and weight factors: not covered by this edition
- 9Not coveredG6 Disruption, emergencies and corrections: not covered by this edition
- 10Not coveredG7 Review and constituent changes: not covered by this edition
- 11Not coveredG8 Governance, changes and termination: not covered by this edition
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