disclosure of the suspension at the Korea Exchange and announce the fact at the business offices of the distributor or the Authorized Participant; ¾ If the stocks comprising over 3% of the Fund’s net asset value were suspended from trading for a certain time and then listed as new issue and included in the Index because of a merger, split-off of the issuer or other reasons: From and including three business days prior to the date of such trading suspension until and including three business days immediately following the date on which such shares are newly included in the Index. In such case, the asset manager must make public at the Korea Exchange the suspension until one day prior to commencement of the suspension and publish the fact at the business offices of the distributor or the Authorized Participant; ¾ The asset manager may adjust the period of suspension of accepting requests for Fund creation, if the asset manager finds it necessary; and ¾ The asset manager may suspend accepting requests for Fund creation, if the asset manager finds it necessary to minimize the Tracking Error Ratio.
If the asset manager suspends acceptance of request for creation of the Fund without making prior notice thereof at the Korea Exchange or publishing the fact at the business offices of the distributor or the Authorized Participant, the Investor may revoke the Fund creation request made prior to such suspension. In the absence of such revocation, the asset manager is deemed to have accepted such request on the first business day after the end of the suspension period, provided that if the Paid-In Assets do not conform to the Portfolio Deposit File announced on the first business day after the end of the suspension period, the Investor must make up the difference.
Cancellation of Creation Request by Foreign Corporate Investor
If the Authorized Participant does not make a request to the asset manager to create the Fund due to reasons set forth in the trust deed, if the investor revokes its request to create the Fund, or if the asset manager does not approve the creation of the Fund, the Authorized Participant must return to the Investor the assets acquired through the Sale and Purchase
assets and promptly return them to the investor,
Authorized Participant must liquidate the with the expenses of the encashment to be
borne by the investor.
4) Procedure for Creation of the Fund
One Business Day before the Creation Request Date (T-1)
The asset manager prepares the Portfolio Deposit File representing net asset value per Creation Unit and publicly notifies or announces it at the Korea Exchange or the Korea Securities Depository before start of business on the following business day.
Creation Request Date (T)
The investor deposits, or has agreed in advance to deposit, the paid-in assets (stocks or cash) in the account opened with the Authorized Participant and makes a fund creation request. In such case, the investor must deposit the same kind of assets as the assets in the Portfolio Deposit File announced by the asset manager on the creation request date.