| (1) |
Where any part of the value of a tax free investment is determined directly or indirectly with reference to any financial instrument that is a share— |
| (a) |
not more than 10 per cent of the value of that tax free investment may be derived from shares in any single company; and |
| (b) |
not less than 80 per cent of any shares must be listed on a recognised exchange as defined in paragraph 1 of the Eighth Schedule to the Income Tax Act. |
| (2) |
Where the value of a tax free investment is determined with reference to any index of listed shares, the value of shares issued by any company may not exceed an amount of 120 per cent of that company's weighting in that index, subject to a maximum of 35 per cent of the market value of the tax free investment. |
| (3) |
Where any part of the value of a tax free investment is determined directly or indirectly with reference to any commodity, not more than 10 per cent of the value of that tax free investment may be derived from that commodity. |
| (4) |
Where any part of the value of a tax free investment is determined directly or indirectly with reference to any financial instrument issued by— |
| (i) |
any public entity that is listed in Schedule 2 or 3 to the Public Finance Management Act, 1999 (Act No. 1 of 1999); |
| (ii) |
a municipality as defined in section 1 of the Local Government Municipal Finance Management Act, 2003 (Act No. 56 of 2003); or |
| (iii) |
any foreign government which has been assigned a foreign currency sovereign rating lower than that of the Republic of South Africa, |
not more than 30 per cent of the value of that tax free investment may be derived from any one of those financial instruments.
| (5) |
Where any part of the value of a tax free investment is determined directly or indirectly with reference to any financial instrument issued by any company and that financial instrument is not a share not more than 10 per cent of the value of that tax free investment may be derived from those financial instruments |
| (6) |
This regulation does not apply in respect of any financial instrument in respect of a collective investment scheme. |
Statistics Act, 1999
