| Title： |
Guidelines for Reporting by Securities Brokers of Consignment Sale of Stock Not Owned by the Principal(2003.05.12) |
| Date： |
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These Guidelines are adopted pursuant to Article 82-1 of the Operating Rules of the Taiwan Stock Exchange Corporation.
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A securities broker receiving consignment to sell a registered stock which has never been transferred or a registered stock which has been transferred and for which transfer registration procedures have been carried out with the issuing company and which meets conditions set forth in paragraph 2 of Article 82-1 of the Operating Rules the Taiwan Stock Exchange Corporation, where the principal is not the owner of the stock, shall request the owner to fill out a letter of consignment for the sale of the stock by others, and shall report to the Taiwan Stock Exchange Corporation ("the TSEC") in accordance with the following rules:
(1) Computer transmission:
The securities broker shall enter the information from the letter of consignment filled out by the owner of the stock into the computers maintained by the Taiwan Securities Central Depository Co., Ltd. ("Central Depository") at the request of the TSEC prior to 6:00 p.m. on the first business day following the date of the transaction.
(2) Information to be entered:
The securities broker shall enter each item of information corresponding to the fields on the computer interface provided by the Central Depository at the request of the TSEC.
(3) Accidental breakdowns:
When accidental breakdowns prevent transmission of information over the computer transmission lines, the securities broker shall immediately notify the Central Depository by telephone, and shall produce a written copy of the information to be entered, stamped with the seal of the company and the company's responsible person. The copy shall first be faxed to the Central Depository or delivered by a specially assigned person as the basis for entry of the data by the Central Depository. A report of the reasons for the breakdown and the method of its handling shall also be filed.
(4) Late reports:
Late reports of letters of consignment shall be faxed to the Central Depository prior to 6:00 p.m. on the second day following the date of the transaction; the Central Depository will enter the information on behalf of the broker. The TSEC may, depending on circumstances, handle the matter in accordance with Article 4 of these Guidelines.
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The broker shall retain the aforesaid letter of consignment along with the settlement documents for its files.
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When the securities broker does not report the consignment within the specified time period or the report is in error, the matter may be handled in accordance with the provisions of the Operating Rules of the Taiwan Stock Exchange Corporation.
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These guidelines shall take force upon approval by the competent authorities.
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