Participant must return to the Investor the assets acquired through the Sale and Purchase of Paid-In Assets either as is or in the form as originally delivered to the Authorized Participant, unless the following conditions are met, in which case the Authorized Participant must promptly return the assets to the Investor in cash, with the expenses of the encashment to be borne by the investor. ¾ The investor is a non-resident foreign corporation; and ¾ The Authorized Participant conducted the Sale and Purchase of the paid-in assets through the joint account.
Settlement of the Sale and Purchase of Paid-In Assets
If the price of the assets acquired through the Sale and Purchase of Paid-In Assets does not coincide with the Valuation Price of the Portfolio Deposit File announced by the asset manager on the day the Fund creation request is made, the investor and the Authorized Participant must make settlement as follows:
If the price of the assets resulting from the Sale and Purchase of the Paid-In Assets exceeds the Valuation Price of the Portfolio Deposit File, the Investor may pay in the excess cash or securities or the Authorized Participant may sell the excess portion of the securities.
If the price falls short Participant Investor.
of the assets resulting from the Sale and Purchase of the Paid-In Assets of the Valuation Price of the Portfolio Deposit File, the Authorized shall return the cash or securities corresponding to such shortfall to the
Where the investor deposits the paid-in assets with the Authorized Participant pursuant to Paragraphs A through F, if the value of the Paid-In Assets based on the closing price of the day of the Fund creation request does not conform to the net asset value of the Creation Unit created by the asset manager on the same day after management of the Fund assets, the investor must pay the difference via the Authorized Participant by the third business day from the day the Fund creation request was made.
Notwithstanding Paragraphs (A) through (G) above, the asset manager may request that the Authorized Participant or the distributor, as the case may be, suspend accepting any request for creation of the Fund in the following cases, in which case investors may not request the creation of the Fund to the distributor or the Authorized Participant:
¾ If the Korea Exchange, in charge of calculating the Index, regularly changes the stocks comprising the Index: For three business days immediately before and after the date of change. In such case, the asset manager shall make a public notice of the suspension at the Korea Exchange by three business days prior to the commencement of suspension and announce the fact at the business offices of the distributor or the Authorized Participant; ¾ If it is necessary to replace the stocks held as Fund assets due to the bankruptcy or similar event of the issuer of the stocks comprising over 1% of the net asset value of the Fund: For three business days immediately before and after the date of such replacement (meaning the day on which the asset manager sends instructions to the Trustee for the purpose of such replacement). In such case, no later than the business day immediately preceding the commencement of the suspension, the asset manager shall make public