Entire Section
PIB A5.8.2 PIB A5.8.2
An
Authorised Firm must include the netUnderwriting position or reduced netUnderwriting position where:(a) debtSecurities are being underwritten;(b) equities are being underwritten; or(c)Warrants are being underwritten.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]PIB A5.8.2 Guidance
1. Sub-underwriting is a commitment given by one firm to someone other than theIssuer or seller of theSecurities to sub-underwrite all or part of an issue ofSecurities . The netUnderwriting position calculated in PIB Rule A5.8.6 will also be used in calculating the netUnderwriting Exposure under Rules PIB A5.8.11 to PIB A5.8.14.2. The netUnderwriting position or reduced netUnderwriting position arising fromUnderwriting or sub-underwriting a rights orWarrants issue should be calculated using the current market price of the underlyingSecurity for the purposes of theEquity Risk Capital Requirement orOption Risk Capital Requirement . However, the riskCapital Requirements will be limited to the value of the netUnderwriting position calculated using the initial issue price of the rights orWarrants . Where there is no market price because the rights orWarrants are in relation to a new class ofSecurities and the initial price has not been set the netUnderwriting position or reduced netUnderwriting is the amount of the commitment.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]