The Minister of Finance has under section42, read with section 6(l)(c) of the Unit Trusts Control Act, 1981 (Act No. 54 of 1981), made the Regulationsin the Schedule.
In these Regulations theAd' means the Unit Trusts Control Act, 1981 (Act No.
"EXCHANGE", mean:; a licensed financial exchange as defined in section 1 of the exchange as defined in section 1 of the Stock Exchanges Control Act, 1985 (Act No.
asset referred to in paragraphs (l), (2)and (3).
In the applicationofsubregulation (1) amanagementcompanymayonlysell option contracts which have previously been bought.
Thesumof thenominalexposures to liquid instrumentsasaresultofthe inclusion of financial instruments in a unit portfolio, together with the market valueof all the physical underlying securities in the unit portfolio, may not exceed 100 percent of the market value of the unit portfolio, or the nominal exposulre may not have a value at any time less than that required by section 6(2) of the Act.
of section 6(l)(a) of theAct in respect of excesseswhicharedueto appreciations or depreciations of the market value ofthe relevant securities, or an amalgamation, cession, transfer or take-over in terms of section 24 of the Act, applymutatis mutandis.
sells call options or call warrants may maintain a bought call option or bought call warrant only if the strike price of the bought call options or call warrants are lower than the soldcall option or call warrant in place of underlying assets as.
The number of contracts.
(b)The relevant contract size.
The current market value of the underlying asset, group of underlying assets or an index.
The number of optionor warrant contracts.
The current market value of one relevant underlying asset, one group of, the underlying assets, an index or index future.
The delta factor being one.
The exposure, calculated in accordance with regulation5(1) or 5(2).
The transaction sign.
The transaction sign is positive for any financial instrument purchased and negative for any financial instrument sold.
The nominal exposure to financial instruments on any underlying assetis the sum of the nominal exposure of all financial instruments on the underlying asset.
After the inclusion of a financial instrument in a unit portfolio, and while a financial furnish the registrar within30 days after the last business day of each quarter witha report substantially conforming to ReportAI, attached to these Regulations.
These Regulations shall be called the Financial Instrument Regulations, 2001, and come into operation on 1December 2001.
with the Financial Instrument Regulations, 2001 (the Regulations), promulgated under section 42, read with section6 (1) ((c), of the Unit Trusts Control Act, 1981 (Act No. 54 of 1981).
Compliance with tlhe Regulations and the maintenance of an effective system of internal control is the responsibility of the directors of the management company.
the internal controls operated as designed throughout the quarter ended.
Because of inherent limitations in any system of internal control, errors or irregularities may occur and not be detected. Also, projections of any evaluationof the internal controls to future periods are subject to the risk that the systernof internal control may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
We conducted our audit in accordance with generally accepted auditing standards. These standards require that we adlopt procedures to obtain an understanding of the system of internal control designed to ensure compliance with the Regulations, to test the operating to evaluate the adequacy of the controls and effectiveness of those controls. We consider that our auditing procedures were appropriate in the circumstances to express our opinion presented below.
the systemof'internal control designedto ensure compliance with the Regulations, operated as designed throughout the quarter ended.