French Monetary and Financial Code
In forceFor the purposes of assessing the limits set out in Article R. 214-36 :
1° When the securities held by the fund are not admitted to trading on a financial instruments market within the meaning of I of Article L. 214-28, they are taken at their acquisition or subscription value;
2° When securities held by the fund are exchanged for securities that are not admitted to trading on a financial instruments market within the meaning of Article L. 214-28, the securities received in exchange by the fund are recorded as assets at the subscription or purchase price of the securities exchanged;
3° When securities held by the fund are admitted to trading on a financial instruments market within the meaning of I of Article L. 214-28 or when they are exchanged with securities admitted to trading on a financial instruments market within the meaning of I of Article L. 214-28, the securities held or exchanged by the fund are deemed to be held as assets at their subscription or purchase price for a period of twelve months from the date of admission or exchange or until the end of the period during which the management company has undertaken, where applicable, to hold the securities as assets of the fund if this period is longer than twelve months. At the end of this period, the ratio provided for in 1° of II of article R. 214-36 is increased to 20% and is assessed in relation to the securities held or received in exchange as any other security admitted to trading on a financial instruments market within the meaning of I of article L. 214-28 ;
4° Where the securities or rights held by the fund are issued by an entity referred to in 2° of II of Article L. 214-28, the contractual subscription or purchase commitment made by the fund is included in the numerator;
5° The denominator is the higher of the following two amounts: the net assets of the fund or the total amount of the contractual subscription or purchase commitments received by the fund.
