CA-10.3.2
Past version: Effective from 01 Apr 2008 to 31 Dec 2011
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The capital charge for specific risk is 8%, unless the portfolio is both liquid and well-diversified, in which case the capital charge will be 4%. To qualify for the reduced 4% capital charge, the following requirements need to be met:
(a) The portfolio equities should be listed on a recognised stock exchange;
(b) No individual equity position shall comprise more than 10% of the gross value of the country portfolio; and
(c) The total value of the equity positions which individually comprise between 5% and 10% of the gross value of the country portfolio, shall not exceed 50% of the gross value of the country portfolio.
Apr 08