These Guidelines are promulgated in accordance with Article 5, Paragraph 2 of the Operating Rules of the Taiwan Stock Exchange Corporation.
Securities underwriters engaging the Taiwan Stock Exchange Corporation ("the TSEC") to handle matters relating to subscription or private placement of securities shall execute a consignment agreement allowing the TSEC to handle such matters in accordance with the Chinese Securities Association Regulations for Underwriting and Resale of Securities by Securities Firms.
When securities underwriters undertake matters relating to subscription or private placement of securities in cooperation with securities brokers, said underwriters and brokers shall handle those matters in accordance with the Chinese Securities Association Regulations for Underwriting and Resale of Securities by Securities Firms.
Sales agents assigned by securities brokers to undertake the matters in the preceding paragraph shall be limited to those who meet the qualifications stipulated under the Rules Governing Responsible Persons and Sales Agents of Securities Firms and who have been registered with the TSEC.
The Taiwan Stock Exchange Corporation may dispatch personnel to investigate the handling of subscriptions and private placements of securities by underwriters and brokers. Underwriters and brokers may not refuse or evade such investigation. If violations of relevant regulations are found, matters pertaining to the company will be handled in accordance with Article 143 of the "Operating Rules of the Taiwan Stock Exchange Corporation" and matters pertaining to employees will be handled in accordance with Article 144 of the same Rules.
These Guidelines and any amendments to them shall be promulgated and take force upon approval by the competent authority.