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Regulations Governing Book-Entry Operations for Centrally Deposited Securities  CH

Amended Date: 2021.03.29 
Article 5    To open a new account with a CSDE, an applicant shall submit an application and other relevant documents to the CSDE.
Article 6    The CSDE shall set up participant's account books.
    The account books as referred to in the preceding paragraph shall record, in addition to the participant's name, office address, and government uniform invoice number or tax ID number, all of the following information regarding securities deposited by the participant:
  1. The respective portions owned by participants, customers, as well as the respective portions pending settlement, under pledge, and registered.
  2. Types and quantities of securities, and the name of the issuing company.
  3. Any increase or decrease in the quantity of deposited securities, and reasons for such changes.
  4. Where the securities serve as trust assets, any necessary recordation with respect thereto.
  5. Other necessary items.
    The portion of securities pending settlement referred to in Item 1 of the preceding paragraph shall refer to those deposited securities to be delivered to other participants and/or customers in performing settlement.
Article 7    A customer intending to have securities deposited with a CSDE in the name of a participant shall prepare and submit to the participant a completed account application together with a chop/signature specimen card.
    The participant, upon accepting a customer's application to open a new account, shall enter into a contract with and provide a passbook to the customer.
    The contents of the contract referred to in the preceding paragraph shall be determined by consultation among the Securities Dealers' Associations, and shall be filed with the Commission for approval.
    The passbook as referred to in paragraph 2 of this article shall not be transferable nor be used as collateral.
Article 8    Where the securities of a customer have been deposited with a CSDE by a participant in compliance with relevant laws and regulations, and the said customer has not opened an account as referred to in the preceding article with the said participant, the customer shall apply to open an account in accordance with the procedures prescribed in the preceding article prior to withdrawal or sales of such securities, or before creating a pledge on such securities.
Article 9    Where securities of a customer have been deposited with a CSDE in the name of a participant with which the customer holds an account, the withdrawal and book-entry of such securities shall be conducted through the same account.
Article 10    Upon accepting a customer's account application and having the customer's securities deposited with a CSDE in the participant's name, the participant shall set up customer’s account books recording the following information:
  1. the customer's name, identification card number, government uniform invoice number, tax ID number, and residence or domicile;
  2. types and quantities of securities, and name of the issuers;
  3. any increase and decrease in the quantity of securities and reasons for such changes;
  4. where the securities serve as trust assets, any necessary recordation with respect thereto; and
  5. other necessary items.
Article 11    A CSDE may cancel the account of a participant if one of the following situations occurs:
  1. the participant has lost the necessary qualification of a participant;
  2. the participant has not used the account for a certain period of time; or
  3. other matters requiring cancellation of the account occur.
    A participant whose account has been canceled in accordance with the preceding paragraph shall undertake the account-closing matters pursuant to the rules and regulations prescribed by a CSDE.
Article 12    A customer's account may be canceled by a participant when the consignment contract for securities transactions between the parties has been terminated.
Article 13    A CSDE shall verify daily with a participant the quantities of securities deposited, withdrawn, and the net balance recorded on the participant's account books.
    Should any discrepancies be discovered in such verification, the participant shall cooperate immediately with a CSDE to examine the reasons for such discrepancies and shall make corrections accordingly.
Article 14     The participant's account books, the customer's account books, and the entry vouchers shall be maintained for a period of at least 15 years from the entry date.