On 26 February 2018, CSSF updated FAQ on key investor information documents, KIID.
- On which regulatory documents are at minimum to be considered for drafting KIID.
- On which procedure must be followed to file the final version of KIID with the CSSF.
- On procedure to be followed when submitting a draft of the KIID to the CSSF in the
context of a request for authorization from CSSF of UCITS or compartment thereof.
- On who bears responsibility for the content of the KIIDs, which are made available.
On 22 February 2018, EP ECON issued scrutiny paper on evaluation of short selling.
- Covered ESMA advice of 21 December 2017, evaluation of Short Selling Regulation.
- Briefing provides overview of three building blocks of the final technical advice.
- Market making activities exemption, the short term restriction on short selling
in case of a significant decline in prices under Article 23 SSR (short-term bans).
- Transparency of net short positions (NSP) and related reporting, and disclosure.
- ESMA executive director Verena Ross spoke at meeting to describe the 3 areas.
On 17 February, Consob issued a notice on Credito Valtellinese spa’s capital increase.
- Consob also issued FAQ on highly dilutive capital increases and the rolling model.
- Capital increase to begin shortly with the right of option on the shares of Credito
Valtellinese spa listed on MTA market, organized, managed by Borsa Italiana spa.
- Increase in question shows dilution characteristics, circumstances mean there is
risk that during offer period of shares, there will be anomalies in pricing process.
- Consisting of overvaluation of market price of shares regarding theoretical value.
- To prevent risk share capital increase will be managed according to rolling model.
- Described in Consob communication 88305, of Oct. 5, 2016, in the consultation
results of Apr. 28, 2016, in standards issued by Borsa Italiana, Monte Titoli spa.
- Provides that, once increase has begun, is possible to option rights on each day
of increase starting from the third, immediately receive the newly issued shares.
- Alternatively, option rights may be exercised, according to the traditional model.
On 15 February, SEBI eased requirements for foreign investor custodians.
- Will ease access for Foreign Portfolio Investors (FPIs), for use of local custodian.
- Discontinued the requirement for FPI to obtain prior approval from SEBI in case
of any change in their local custodian/ Designated Depository Participant (DDP).
Registration of Investment
- Applied to protected cell companies (PCC) and multi class share vehicles (MCV).
- Rationalized the process for submitting PCC/MCV declarations and undertakings.
- In relation to investor grouping requirements, at the continuance of registration.
- Placed reliance on due diligence at the time of change of custodian/ DDP of FPIs.
- Exemption for FPIs having Multiple Investment Managers (MIM) structure, from
seeking prior approval from SEBI, in case of the Free of Cost transfer of assets.
- Simplification of process for addition of share class, changing FAQs 49 and 100.
- Permitting FPIs operating under an MIM structure to appoint multiple custodians.
- Allowing appropriately regulated Private Bank/Merchant Bank to invest for them.
- Facility of granting conditional registration to also be extended to existing funds.
where proposing to convert as India dedicated funds, if existing, given 90 days.
On 7 February 2018, BaFin issued its final position limits, take effect from 8 February 2018.
- PXE Czech future/base; Phelix power future/option, base; Phelix power future/peak.
On 5 February 2018, ESMA updated FAQs on implementation of Short Selling Regulation.
- Updated answer on the covering of a short sale with claims to as yet unissued shares.
- Rights to subscribe for new shares cannot be used to cover a short sale in accordance
with Article 5(1)(e) of Reg 827/2012 where at time of entering into short sale there is
uncertainty as to whether the new shares will be available for settlement, in due time.