| Title： |
Regulations Governing Applications for Issuance of Call (Put) Warrants by Issuers(2008.12.29) |
| Date： |
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Article 8
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The underlyings to which call (put) warrants issued by an issuer are linked are limited to the following:
1. Stocks, baskets of stocks, exchange-traded funds, and Taiwan depositary receipts that are listed on the TSEC or GTSM and meet conditions prescribed by the TSEC or the GTSM.
2. Indexes as publicly announced by the TSEC or GTSM.
If a company that issued any linked underlying referred to in the preceding paragraph is involved in a merger or acquisition, the FSC may suspend further issuance by an issuer of call (put) warrants on that underlying, and shall suspend the issue of warrants that an issuer has received permission to issue but has not yet issued, provided that call (put) warrants already issued shall remain valid.
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Article 16
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If an issuer issues offshore call (put) warrants for which the linked underlying is a domestic security or index, the scope of the underlyings shall comply with the provisions of Article 8; if the linked underlying is a foreign security or index, the scope of the underlyings shall be handled pursuant to the requirements of the competent authority or exchange where the warrants are traded, provided that the following may not beincluded:
1. Mainland China stock price indices, securities listed on mainland China securities markets, and securities issued or managed by the government of, or a company from, mainland China.
2. Securities issued by companies whose stocks are components of the Hang Seng China-Affiliated Corporations Index.
3. Securities issued by a company in which a government or company of the mainland China area directly or indirectly holds equity of 30 percent or more, and which are traded on a securities market in the Hong Kong or Macao area.
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Article 22
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If an issuer issues offshore call (put) warrants for which the linked underlying is a domestic security or index, payment at exercise shall be limited to cash settlement; if the linked underlying is an offshore security or index, payment at exercise shall comply with the requirements of the competent authority or exchange where the warrants are traded.
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