Custom print

CA-10.1.3

Past version: Effective from 01 Apr 2008 to 31 Mar 2011
To view other versions open the versions tab on the right

Convertible debt securities must be treated as equities where:

(a) the first date at which the conversion may take place is less than three months ahead, or the next such date (where the first date has passed) is less than a year ahead; and
(b) the convertible is trading at a premium of less than 10%, where the premium is defined as the current marked-to-market value of the convertible less the marked-to-market value of the underlying equity, expressed as a percentage of the latter.

In other instances, convertibles should be treated as either equity or debt securities, based reasonably on their market behaviour.

Apr 08