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If a listed company or secondary listed company violates these Rules or information that it has filed is erroneous, the TWSE may impose a breach penalty of NT$10,000; provided, however, if the error or omission was discovered by the competent authority, the TWSE, or an investor and is verified upon investigation, the TWSE may impose on a case-by-case basis a breach penalty of NT$30,000.
In the case of a listed company or secondary listed company on which a breach penalty shall be imposed under the preceding paragraph, where the cumulative number of penalties within the most recent year has reached two or more (inclusive of the current penalty), or where the circumstances in the individual case are due to deliberate intent or material deficiency, or have a material impact on shareholder equity or securities price, the TWSE may impose a breach penalty of NT$50,000 to NT$1 million. If supplementations or corrections are required, the TWSE shall furthermore notify via letter the aforementioned company to make supplementations or corrections within two business days after delivery of the letter. A company further failing to make supplementations or corrections by the deadline shall be subject to a breach penalty of NT$10,000 for each business day beyond the deadline until the date of supplementation or correction.
If a company has been subject to a per-day breach penalty and still has failed to make supplementations or corrections and the circumstances in the individual case are severe, the TWSE may change the original trading method of, or suspend the trading of, its listed securities pursuant to Article 49 or Article 50 of the TWSE Operating Rules.
If a SITE or futures trust enterprise with listed beneficial certificates, fund shares, or investment units of a closed-end fund or ETF, the master agent of an offshore fund institution, or securities firm, violates these Rules or discovers on its own after the deadline for filing that what has been filed is erroneous and applies to make corrections, the TWSE may impose on the SITE, futures trust enterprise, offshore fund institution, or securities firm a breach penalty of NT$10,000; provided, that if the error or omission was discovered by the competent authority, the TWSE, or an investor, and is verified upon investigation, a breach penalty of NT$50,000 shall be imposed, and the enterprise shall furthermore be notified via letter to make supplementations or corrections within two business days after delivery of the letter. An enterprise failing to make supplementations or corrections by the deadline shall be subject to a further breach penalty of NT$10,000 for each business day beyond the deadline until the date of supplementation or correction.
Breach in the input of material information by a listed company or secondary listed company shall additionally be handled under the TWSE Procedures for Verification and Disclosure of Material Information of Companies with TWSE Listed Securities; breach in the input of material information by a SITE or futures trust enterprise with listed beneficial certificates of a closed-end fund or ETF shall additionally be handled under the TWSE Procedures for Verification and Disclosure of Material Information of Trust Enterprises with TWSE Listed Beneficial Certificates and Offshore Fund Institutions.
Imposition of a penalty on a listed company or secondary listed company due to a violation of these Rules shall be disclosed in the Section Designated for Violations by TWSE Listed Companies of Rules Governing Information Filing, Material Information, and Press Conferences on the Market Observation Post System website.
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