Entire Section
Calculating the Net Underwriting Position
PIB A5.8.6
An
Authorised Firm must calculate a netUnderwriting position from the date of initial commitment until theUnderwriting process ends, as the initial gross commitment adjusted for:(a)Underwriting or sub-underwriting commitments obtained from others since the time of initial commitment;(b) purchases or sales of theSecurities since the time of initial commitment;(c) any allocation ofSecurities granted or received, arising from the commitment to underwrite theSecurities , since the time of initial commitment; and(d) in the case of sales in the grey market, as defined in PIB Rule A5.8.5, any sales of theSecurities as at the time of initial commitment or since the time of initial commitment is subject, in both cases, to the following conditions:(i) any sales of theSecurities as at the time of initial commitment must be confirmed in writing at the time of initial commitment;(ii) sales must be net of any purchases in the grey market; and(iii) any allocation ofSecurities granted or received, arising from the commitment to underwrite theSecurities , since the time of initial commitment.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]PIB A5.8.7 PIB A5.8.7
If the allocation of
Securities has not been fixed, anAuthorised Firm must calculate the gross amount of its commitment, for the purpose of PIB Rule A5.8.6, by reference to the maximum amount it has committed to underwrite until the time the allocation is set. AnUnderwriting commitment may only be reduced under thisRule on the basis of a formal agreement.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]PIB A5.8.7 Guidance
Allocations may arise, after date of initial commitment, from the agreement to underwrite. For example, obligations or rights may be allocated to or from the
Issuer , the underwritingGroup or syndicate.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]