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Article 1
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These Regulations are adopted pursuant to the provisions of Paragraph 4 of Article 8 of the Statute for Investment by Overseas Chinese and Paragraph 4 of Article 8 of the Statute for Investment by Foreign Nationals.
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Article 2
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Overseas Chinese and foreign nationals may invest in securities by the following means:
1. Investment in trust fund beneficiary certificates issued by ROC securities investment trust enterprises ("SITEs") and sold offshore ("Offshore Beneficiary Certificates").
2. Investment in ROC securities.
3. Investment in overseas corporate bonds issued by ROC issuing companies ("OCBs").
4. Investment in global depository receipts sponsored by ROC issuing companies ("GDRs").
5. Investment in stocks issued or traded overseas by ROC issuing companies ("Overseas Stocks").
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Article 2-1
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Overseas Chinese and foreign nationals outside the ROC investing in ROC securities shall appoint an agent in the ROC to apply to open a New Taiwan Dollar account.
Agents so appointed to open accounts shall be limited to securities firms or financial institutions within the ROC.
Overseas Chinese and foreign nationals outside the ROC investing in securities shall open a current account or current savings account denominated in New Taiwan Dollars at a financial institution within the ROC, specifically designating the account as the custodial account of the custodian bank; such account shall be used for securities settlement purposes only.
A custodian bank as referred to in the preceding paragraph shall be responsible for controlling the total amount of investment in securities by overseas Chinese and foreign nationals outside the ROC such that it shall not exceed the ceiling provided by regulations, and on the tenth day of each month shall report by letter to the Central Bank of China the account fund utilization and balance information for the preceding month.
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Article 3
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The term "qualified foreign institutional investor" ("QFII") as used in these Regulations shall mean foreign banks, insurance companies, securities firms, fund management institutions, and other institutional investors located outside of the territory of the Republic of China (ROC) and meeting the qualifications and conditions prescribed by the competent securities authority.
"Overseas Chinese and foreign nationals within the ROC" shall mean natural persons residing within the territory of the ROC and holding an alien resident certificate, or branch offices established within the territory of the ROC by foreign juristic persons.
"Overseas Chinese and foreign nationals outside the ROC" shall mean overseas Chinese and foreign nationals outside the territory of the ROC who are not among the QFIIs provided in Paragraph 1.
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Article 4
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ROC securities in which investment may be made by SITE Managed Offshore Issued Funds, QFIIs, and overseas Chinese and foreign nationals outside the ROC shall be confined to the following:
1. Listed and over-the-counter ("OTC") stocks and bond conversion Entitlement Certificates.
2. Listed and OTC beneficiary certificates.
3. Government bonds, financial bonds, ordinary corporate bonds, and convertible corporate bonds.
4. Other securities as approved by the competent securities authority.
The Ministry of Finance may, depending on domestic economic and financial conditions and the state of the securities market, limit the use of funds remitted pursuant to the preceding paragraph that have not been invested in ROC securities. The percentage of such limitation shall be determined by the competent securities authority after consultation with the competent authority for foreign exchange operations.
Investors who have already invested in ROC securities pursuant to the provisions of Paragraph 1 may, as necessary for hedging purposes, engage in futures trading in the ROC futures market. Applicable regulations shall be prescribed by the competent securities authority after consultation with the competent authority for foreign exchange operations.
Except as otherwise provided by other laws or regulations, the scope of investment in ROC securities by overseas Chinese and foreign nationals within the ROC shall be unrestricted; such investors may furthermore engage in futures trading subject mutatis mutandis to the provisions of the preceding paragraph.
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Article 5
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The issuing companies in which investment is permitted by SITE Managed Offshore Issued Funds and by overseas Chinese and foreign nationals shall be determined by the competent securities authority. Such investment shall be exempt from the prohibitions and restrictions on investment by overseas Chinese and foreign nationals in specific industries as set forth in the Executive Yuan's negative list, except where other applicable laws or regulations prohibit investment by foreign nationals or limit the percentage of equity holdings by overseas Chinese or foreign nationals.
Investment by SITE Managed Offshore Issued Funds and by overseas Chinese and foreign nationals in stock of [ROC] companies shall be subject to the following percentage limitations; provided, if a lower percentage is set by any other law or regulation, such lower percentage shall apply:
1. The total investment by each SITE Managed Offshore Issued Fund or each overseas Chinese or foreign national in the shares of any issuing company shall not exceed 50 percent of the total outstanding shares of such company.
2. The total investment of all SITE Managed Offshore Issued Funds, overseas Chinese, and foreign nationals in the shares of any issuing company shall not exceed 50 percent of the total outstanding shares of such company.
Where the issuing companies in which the SITE Managed Offshore Issued Funds and overseas Chinese and foreign nationals are allowed to invest belong to enterprises in which ownership by overseas Chinese and/or foreign nationals is restricted by other laws or regulations, the total shares of such companies available for investment by overseas Chinese and foreign nationals in accordance with the Statute for Investment by Overseas Chinese or the Statute for Investment by Foreign Nationals shall not exceed an amount equal to the maximum amount of such investments as specified in the respective laws and regulations less the aggregate of (i) investments as specified in Item 2 of the preceding Paragraph, (ii) the amount of shares convertible from offshore convertible bonds, (iii) the amount of Entitlement Certificates or shares convertible from domestic convertible bonds invested in by overseas Chinese and foreign nationals, (iv) the amount of shares represented by GDRs and (v) the amount of Overseas Stocks. Investors whose approved investment exceeded the aforesaid amount prior to the amendment and promulgation of these Regulations, shall not make any further application for investment under the preceding Paragraph.
If the total amount invested by SITE Managed Offshore Issued Funds and by overseas Chinese and foreign nationals in a company's shares do not exceed the percentage provided in Item 2 of Paragraph 2 of this Article, the issuing company may apply to publicly offer and issue convertible OCBs or Overseas Stocks or to sponsor GDRs.
Unless otherwise provided by other laws and regulations, the provisions of Item 1 of' Paragraph 2 of' this Article shall apply mutatis mutandis to investments in listed or OTC beneficiary certificates by SITE Managed Offshore Issued Funds and overseas Chinese and foreign nationals.
The percentage limitations on investment set forth in Paragraph 2 shall not apply to SITE Managed Offshore Issued Funds, QFIIs, and overseas Chinese and foreign nationals within the ROC requesting to convert their convertible bonds of an issuing company into Entitlement Certificates or share certificates issued by the issuing company pursuant to the issuance and conversion rules of the issuing company, or to invest in Entitlement Certificates.
The Ministry of Finance may adjust the investment percentage limits set forth in Paragraph 2 after consulting with and obtaining approval from the authority in charge of the enterprise concerned and after taking into consideration domestic economic and financial conditions and the state of the securities market.
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Article 6
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An overseas Chinese or foreign national investing in securities under these Regulations shall appoint an agent or representative within the territory of the ROC to file tax returns and pay taxes on his or her behalf. Documents evidencing such appointment shall be completed and submitted to the tax authorities for approval. In case of a change of agent or the representative, the successor agent or representative shall prepare another set of such documents evidencing the appointment for tax filing and payment and submit the same to the tax authorities for approval.
An overseas Chinese or foreign national, when applying for outward remittance of earnings from securities investment, shall submit the documents evidencing appointment of the agent or representative for tax return filing and tax payment under the preceding Paragraph as approved by the tax authorities; provided that during any period that securities income [i.e. capital gains] tax is not levied, an overseas Chinese or foreign national applying for outward remittance of earnings from securities investment may, through the agent or representative appointed under these Regulations, submit the tax clearance certificate issued by the tax authorities and handle the remittance in accordance with the relevant provisions of the Statute for Regulation of Foreign Exchange. If there are earnings from securities investments in registered stocks transferred or deposited in accordance with the provisions of Articles 16 and 17 of the Statute for Upgrading of Industries and Article 13 of the former Statute for Encouragement of Investment, the agent or the representative shall carry out the procedures for tax return filing and tax payment.
The format of the documents for appointment of the agent or representative for tax return filing and tax payment under Paragraph 1 shall be prescribed by the Ministry of Finance.
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Article 7
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A SITE that issues Offshore Beneficiary Certificates for subscription by overseas Chinese and foreign nationals for the purpose of establishing a [SITE Managed Offshore Issued] Fund shall apply to the competent securities authority for approval within one month after obtaining an approval letter from the competent foreign exchange operations authority.
Inward remittance of the funds for subscription to the [SITE Managed Offshore Issued] Fund shall be handled in accordance with the relevant provisions of the Statute for Regulation of Foreign Exchange.
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Article 8
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Earnings derived from trust funds managed by SITEs may be distributed yearly to the beneficiaries of Offshore Beneficiary Certificates, provided that capital gains and stock dividends are distributed from realized earnings only.
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Article 9
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The beneficiary of an Offshore Beneficiary Certificate may, in accordance with the relevant provisions of the Statute for Regulation of Foreign Exchange, remit or reinvest in ROC securities the proceeds from their redemption, the proceeds from distribution of trust fund assets by a SITE, or the earnings distributed pursuant to the preceding article.
A QFII reinvesting in ROC securities in accordance with the preceding paragraph shall enter its investments in the accounts required under Article 20, and shall submit a report within five days to the competent securities and foreign exchange operations authorities. Where the total resulting investment amounts exceed the originally approved amounts or the limit as provided in Article 11, such excess amount shall be exempt from the approval requirement in Article 10.
The provisions of Articles 15, 16, 18, 19, 21, the latter part of Article 22, Article 25, and the latter part of Article 31, Paragraph 1 shall apply mutatis mutandis to reinvestment in ROC securities by overseas Chinese and foreign nationals outside the ROC pursuant to Paragraph 1 of this article.
The provisions of Article 23 shall apply mutatis mutandis to reinvestment in ROC securities by overseas Chinese and foreign nationals within and outside the ROC pursuant to Paragraph 1 of this article.
The provisions of Paragraph 2 of Article 5 shall apply mutatis mutandis to reinvestment in ROC securities by beneficiaries of Offshore Beneficiary Certificates pursuant to Paragraph 1 of this article.
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Article 10
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A QFII wishing to invest in ROC securities shall apply to the competent securities authority for approval and shall obtain a letter of approval from the competent foreign exchange operations authority.
With respect to applications specified in the preceding paragraph, the competent securities authority may consider the geographical distribution of applicants and relationships among them when deciding whether to grant approval.
A QFII applying for approval under Paragraph 1 of this article shall file an application specifying the intended amount of investment, and annex the following documents:
1) Power of attorney to its agent or letter of appointment of its representative.
2) Documents evidencing the applicant's conformance with the qualifications set by the competent securities authority.
3) A copy of the custodian agreement.
4) Other documents as required by the SFC.
QFIIs are not required to resubmit the above documents when subsequently applying again for approval for investment in ROC securities, unless there is a change in any such document.
If the QFII is a securities firm, a description of the source of funds is required, in addition to the documents specified in Paragraph 3.
A QFII meeting any of the following conditions may apply to open an investment sub-account after submitting documents specifying the relationship between the main account and sub-account and evidencing the necessity of opening a sub-account:
1) The source of funding is funds under separate management, 100 percent owned subsidiaries, or a contractual customer.
2) Investment strategy requires contracted outside managers to manage a pension fund, mutual fund, or unit trust.
3) Hedging is necessitated, by an issue of call (put) warrants or at the behest of an issuer of call (put) warrants.
4) A sub-account is otherwise required for operational purposes.
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Article 11
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The permitted amount of investment in ROC securities by each QFII shall be determined by the competent securities authority following consultation with the competent foreign exchange operations authority.
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Article 12
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A QFII investing in ROC securities shall remit the investment funds into the ROC and convert them to local currency within the time period set by the competent securities authority. Any portion of the funds that has not been remitted or converted to local currency within such period shall not subsequently be remitted in after expiry of such period.
Application for inward remittance and conversion of funds pursuant to the preceding paragraph shall be made in accordance with the Statute for Regulation of Foreign Exchange, annexing the approval letter of the competent securities authority.
Within 10 days of the end of each month, the QFII shall compile data on all inward remittances made during the previous month and file a report with the competent securities and foreign exchange operations authorities.
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Article 13
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After receiving approval for investment in Taiwan, a QFII may apply to remit investment capital and earnings on investments out of the ROC. However, outward remittances of capital gains and dividends on stocks shall be made from realized earnings only.
Applications for foreign exchange remittance pursuant to the preceding paragraph shall be handled in accordance with the Statute for Regulation of Foreign Exchange.
Within 10 days of the end of each month, the QFII shall compile data on all outward remittances made during the previous month and submit a report to the competent securities and foreign exchange operations authorities.
Where capital that has been remitted out pursuant to Paragraph 1 is to be remitted in again for investment purposes within the time limit specified by the competent securities authority, such investment shall be exempt from the approval requirement in Article 10.
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Article 14
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A QFII that has received approval for investment in ROC securities shall be deemed to be making an outward remittance of investment capital under any of the circumstances below; all remittances shall be recorded in the accounts required under Article 20 and reported within five days to the competent securities and foreign exchange operations authorities:
1) Investment in depository receipts issued by a foreign issuer within the ROC, where request is made to the depository institution for redemption into the underlying securities represented by the depository receipts.
2) Investment in stocks issued by a foreign issuer within the ROC and denominated and settled in New Taiwan Dollars, and resale of those stocks in an offshore securities market.
3) Investment in New Taiwan Dollar denominated ordinary corporate bonds, convertible corporate bonds, or corporate bonds with warrants issued by a foreign issuer within the ROC, where request is made for overseas redemption or conversion into stock.
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Article 15
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A QFII investing in ROC securities shall appoint a local agent or representative to undertake matters such as opening accounts for securities trading, applying for conversion of domestic corporate bonds, exercising rights in purchased securities, applying for foreign exchange remittance, and paying taxes.
The qualifications for the agent or representative in the preceding paragraph shall be set by the competent securities authority.
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Article 16
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A QFII that invests in ROC securities shall designate a bank approved by the Ministry of Finance to offer custodial services to act as its custodian institution and to handle related matters such as custody of investment funds and securities, confirmation of trades, transaction settlement, and reporting of relevant information.
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Article 17
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A QFII applying to a securities firm to open an account for securities trading shall submit a letter of approval from the competent securities authority. Upon completion of the account-opening procedures, the securities firm shall file a letter of notification with the Stock Exchange or the Over-the-Counter Securities Exchange.
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Article 18
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A QFII consigning trading of ROC securities to a domestic securities firm shall provide a written record of the consignment. The appointed custodian institution shall confirm the trade and handle settlement procedures.
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Article 19
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A QFII shall use investment capital approved for inward remittance for the purpose of investment in ROC securities in accordance with these Regulations and other applicable laws and regulations, and shall abide by the following provisions:
1) It shall not engage in securities margin trading.
2) It shall not sell securities it does not hold.
3) It shall not extend loans or provide collateral.
4) It shall not entrust custody of securities to any juristic person or individual other than a custodian institution or centralized securities depository.
5) It shall not engage in any other activities prohibited by the competent securities authority.
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Article 20
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A custodian institution shall establish accounts in which information on the utilization of the funds and securities inventories of each QFII shall be recorded on a daily basis and, within ten days of the end of each month, shall produce a statement of trades and securities inventories during the previous month and submit it to the competent securities and foreign exchange operations authorities. Within two months of the close of each calendar year, the custodian institution shall prepare an annual financial statement of the use of the investment funds remitted in by the QFII and submit the statement, duly audited and certified by a certified public accountant, to the foreign exchange operations and securities authorities.
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Article 21
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The competent securities authority may, when necessary, require a QFII to submit the following information:
1) A list of owners of beneficiary interests in the investment capital, the amount of the capital, its source, and related information.
2) Information on utilization of the investment funds remitted, securities trading details, and inventory information. The competent authority may examine the securities inventories and accounts.
3) Detailed information on derivative products issued or traded offshore and based on the stock of ROC public companies as their underlying securities; or detailed information on ROC public company stock held on behalf of a principal engaging in derivatives trading.
4) Relevant information on persons giving trading orders for investment in ROC securities, including their name, nationality, and contact information.
5) Other information as specified by the competent securities authority.
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Article 22
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The limits on investment by overseas Chinese or foreign nationals outside the ROC shall be set by the competent securities authority following consultation with the competent foreign exchange operations authority. Remittance of funds shall be carried out in accordance with the Statute for Regulation of Foreign Exchange.
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Article 23
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Overseas Chinese and foreign nationals within or outside the ROC investing in ROC securities shall file an application for approval with the Stock Exchange in accordance with its operating rules and shall annex the relevant documents; provided, overseas Chinese and foreign nationals within the ROC investing in government bonds, financial bonds, ordinary corporate bonds, and open-ended beneficiary certificates are not subject to this restriction.
Overseas Chinese and foreign nationals within or outside the ROC applying with securities firms to open accounts for securities trading shall submit a letter of approval from the Stock Exchange, and after completion of procedures for opening the account, the securities firm shall file a letter of notification with the Stock Exchange or Over-the-Counter Securities Exchange.
The qualifications necessary for overseas Chinese and foreign nationals within or outside the ROC to invest in ROC securities shall be set by the competent securities authority.
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Article 24
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The provisions of Articles 15, 16, 18, 19, and 21 shall apply mutatis mutandis with respect to investments in ROC securities by overseas Chinese and foreign nationals outside the ROC.
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Article 25
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A custodian institution shall establish account books and enter information daily on the inventory and fund utilization of each overseas Chinese and foreign national outside the ROC investing in ROC securities. Within ten days of the end of each month, it shall furthermore produce a statement of total securities trading volumes and account balances for the previous month and submit it to the Stock Exchange. The Stock Exchange in turn shall, within 20 days of the end of each month, compile such statements for overseas Chinese or foreign nationals outside the ROC and submit the information to the competent foreign exchange operations and securities authority.
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Article 26
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An overseas Chinese or foreign national outside the ROC that has received approval for investment in ROC securities shall be deemed to be making an outward remittance of investment capital under any of the circumstances below; all such remittances shall be recorded in the accounts required under Article 25:
1) Investment in depository receipts issued by a foreign issuer within the ROC, where request is made to the depository institution for redemption into the underlying securities represented by the depository receipts.
2) Investment in stocks issued by a foreign issuer within the ROC and denominated and settled in New Taiwan Dollars, and resale of those stocks in an offshore securities market.
3) Investment in New Taiwan Dollar denominated ordinary corporate bonds, convertible corporate bonds, or corporate bonds with warrants issued by a foreign issuer within the ROC, where request is made for overseas redemption or conversion into stock.
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Article 27
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ROC issuing companies offering and issuing overseas corporate bonds shall apply to the competent securities authority for approval or for registration effective upon filing.
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Article 28
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Overseas Chinese and foreign nationals may, in accordance with the terms of issuance and conversion established by the issuing company, request conversion of their holdings of overseas corporate bonds of ROC issuing companies into securities of those ROC issuing companies. Stock so converted from bonds shall not be subject to the investment percentage limits provided in Paragraph 2 of Article 5.
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Article 29
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When applying for conversion of bonds into ROC company securities in accordance with the preceding article, a QFII or an overseas Chinese or foreign national outside the ROC shall appoint an agent within the ROC to handle the application for conversion, custody of the ROC securities, opening of trading accounts, confirmation of trades, transaction settlements, remittance applications, tax payments, and exercise of shareholders' rights by proxy.
Qualifications for the agent within the ROC specified in the preceding paragraph shall be set by the competent securities authority.
The provisions of Articles 19 and 21 shall apply mutatis mutandis where a QFII or an overseas Chinese or foreign national outside the ROC makes conversions into the stock of an ROC company pursuant to the preceding article.
The provisions of Article 23 shall apply mutatis mutandis where an overseas Chinese or foreign national makes conversions into the stock of an ROC company pursuant to the preceding article.
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Article 30
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Overseas Chinese and foreign nationals may apply for remittance of earnings distributed from securities investment obtained under Article 28 and of proceeds obtained from the sale of such securities.
Overseas Chinese and foreign nationals may apply for remittance, in one lump sum, of proceeds obtained from the distribution of residual assets of the company issuing the corporate bonds.
Overseas Chinese and foreign nationals applying for remittance pursuant to the preceding two paragraphs shall comply with the provisions of the Statute for Regulation of Foreign Exchange.
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Article 31
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Funds obtained by overseas Chinese and foreign nationals through the sale of ROC securities obtained through conversion of bonds under Article 28 may be reinvested in ROC securities. The amounts reinvested in ROC securities by overseas Chinese and foreign nationals outside the ROC shall be included in the amount originally approved for investment in ROC securities.
Reinvestment in ROC securities by a QFII pursuant to the preceding paragraph shall be deemed an inward remittance of investment capital; such remittance shall be recorded in the accounts required under Article 20 and reported to the competent securities and foreign exchange operations authorities within five days. If the total resulting investment amount exceeds the originally approved amount or the limit set in Article 11, such excess amount shall be exempt from the approval requirement in Article 10.
The provisions of Articles 15, 16, 18, 19, 21, the latter part of Article 22, and Article 25 shall apply mutatis mutandis to reinvestment in ROC securities by overseas Chinese and foreign nationals outside the ROC pursuant to Paragraph 1 of this article.
The provisions of Article 23 shall apply mutatis mutandis to reinvestment in ROC securities by overseas Chinese and foreign nationals within and outside the ROC pursuant to Paragraph 1 of this article.
The provisions of Paragraph 2 of Article 5 shall apply mutatis mutandis to reinvestment in ROC securities by overseas Chinese and foreign nationals pursuant to Paragraph 1 of this article.
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Article 32
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Overseas Chinese and foreign nationals who have obtained stock shares pursuant to Article 28 may subscribe to new shares in accordance with the applicable provisions of the Company Law when the issuing company in which they have invested increases capitalization through new share issues, and may apply for the inward remittance of funds necessary for such subscription.
Overseas Chinese and foreign nationals making inward remittances of funds for share subscriptions pursuant to the preceding paragraph shall do so in compliance with the applicable provisions of the Statute for Regulation of Foreign Exchange.
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Article 33
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Except where otherwise provided by the competent securities authority, ROC issuing companies sponsoring GDRs shall apply to the competent securities authority for approval or for registration effective upon filing.
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Article 34
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Overseas Chinese and foreign nationals who hold GDRs from conversion of overseas corporate bonds or from equity investment in GDRs sponsored by issuing companies shall not be subject to the investment percentage limits provided in Paragraph 2 of Article 5.
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Article 35
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Overseas Chinese and foreign nationals may request redemption of GDRs in which they have invested. When applying for redemption, they may request that the underlying securities be transferred to them by the depository institution, or may request the sale of such underlying securities by the depository institution and payment to them of the proceeds therefrom after deduction of taxes and relevant fees.
Overseas Chinese and foreign nationals may not request redemption of GDRs within three months after issuance of the GDRs if such GDRs were sponsored by listed or OTC companies increasing their capitalization through issuance of new shares for cash.
When overseas Chinese and foreign nationals request redemption of securities represented by GDRs pursuant to Paragraph 1 of this Article and the securities are share certificates, the investment percentage limits in Paragraph 2 of Article 5 shall not apply.
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Article 36
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The provisions of Articles 15, 16, 18, 19, and 21 shall apply mutatis mutandis where a QFII or an overseas Chinese or foreign national outside the ROC requests conversion of GDRs in which they have invested into the underlying securities.
The provisions of Article 23 and Articles 30 to 32 shall apply mutatis mutandis to the handling of matters related to investment in GDRs by overseas Chinese and foreign nationals.
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Article 37
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Only after redemption of GDRs and sale of the redeemed underlying securities may overseas Chinese and foreign nationals, on their own or through the depository institution, buy the underlying securities from the ROC market in a number not exceeding the original number sold and then transfer them to the depository institution as the basis for re-issuance of GDRs. Remittance of the required funds shall be handled in accordance with the Statute for Regulation of Foreign Exchange.
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Article 38
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An ROC issuing company shall apply for approval or for registration effective upon filing to engage in the following:
1. Public offering and issuance of Overseas Stocks.
2. Trading of its own outstanding stock in offshore securities markets.
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Article 39
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Investment in Overseas Stocks by overseas Chinese and foreign nationals shall not be subject to the investment percentage limits in Paragraph 2 of Article 5.
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Article 40
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Overseas Chinese and foreign nationals may sell in the ROC market Overseas Stocks in which they have invested, provided, however, that Overseas Stocks of listed or OTC companies issued for capitalization increases by cash may not be sold within three months after issuance.
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Article 41
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Articles 15, 16, 18, 19, and 21 shall apply mutatis mutandis where a QFII or overseas Chinese or foreign national outside the ROC applies to sell, in the ROC market, Overseas Stocks in which it has invested.
Article 23 shall apply mutatis mutandis where an overseas Chinese or foreign national applies to sell, in the ROC market, Overseas Stocks in which it has invested.
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Article 42
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When cash dividends or residual assets are distributed by an ROC issuing company with respect to an Overseas Stock, application may be made for a lump-sum remittance of the proceeds distributable therefrom to an overseas Chinese or foreign national invested in such Overseas Stock.
An overseas Chinese or foreign national may apply for a lump-sum remittance of the proceeds obtained from the sale of an Overseas Stock under Article 40.
An overseas Chinese or foreign national applying for remittance pursuant to the preceding two paragraphs shall do so in accordance with the Statute for Regulation of Foreign Exchange.
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Article 43
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Overseas Chinese and foreign nationals may, after selling an Overseas Stock in the ROC market, purchase issued shares in an amount not exceeding the amount originally sold and trade such shares in an offshore market. Remittance of the necessary funds shall be handled through the custodian institution in accordance with the Statute for Regulation of Foreign Exchange.
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Article 44
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The provisions of Article 32 shall apply mutatis mutandis with respect to the issuance of new shares for capital increase by issuing companies invested by overseas Chinese and foreign nationals.
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Article 45
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An overseas Chinese or foreign national may use the proceeds from the sale of an Overseas Stock under Article 40 to reinvest in ROC securities.
Reinvestment in ROC securities by a QFII pursuant to the preceding paragraph shall be recorded in the accounts required under Article 20 and reported to the competent foreign exchange operations and securities authorities within five days. When the total resulting investment exceeds the originally approved amounts or the limit stipulated under Article 11, such excess amount shall be exempt from the approval requirement in Article 10.
The provisions of Articles 15, 16, 18, 19, 21, the latter part of Article 22, Article 25, and the latter part of Paragraph 1 of Article 31 shall apply mutatis mutandis to reinvestment in ROC securities by overseas Chinese and foreign nationals outside the ROC pursuant to Paragraph 1 of this Article.
The provisions of Article 23 shall apply mutatis mutandis to reinvestment in ROC securities by overseas Chinese and foreign nationals within and outside the ROC pursuant to Paragraph 1 of this article.
The provisions of Paragraph 2 of Article 5 shall apply mutatis mutandis to reinvestment in ROC securities by overseas Chinese and foreign nationals pursuant to Paragraph 1 of this article.
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Article 46
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Overseas Chinese and foreign nationals found in violation of these Regulations or other relevant laws and regulations shall be punished pursuant to applicable laws and regulations.
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Article 47
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These Regulations shall take force on the date of promulgation.
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