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Taiwan Stock Exchange Corporation Regulations Governing Applications by Securities Firms for Resumption of Business after Suspension(2003.05.06) |
| Date： |
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Article 1
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These Regulations are specially promulgated in order to ensure the normal operation of any securities firm that has ceased operations or suspended trading (below referred to as "the suspended firm") and is resuming operations or trading (below referred to as "resume trading"), in order to maintain the security of transactions and settlements in the centralized securities exchange market.
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Article 2
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A suspended firm shall handle application for resumption of trading in accordance with these Regulations; other relevant laws and regulations shall apply with respect to matters not provided for herein.
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Article 3
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In applying to resume trading, a suspended firm shall conform to each of the following provisions:
1. Where the suspended firm has provided a business guarantee fund in accordance with regulations of the Securities and Futures Commission of the Ministry of Finance (hereinafter referred to as "the competent authority"), if a court has executed a provisional attachment and there are creditors that enjoy the right of preferential payment under Article 55, Paragraph 2 of the Securities and Exchange Law, the suspended firm shall first make up any deficiency in the fund, provided that where the executing creditor does not enjoy the right of preferential payment, the deficiency may be made up subsequent to transfer of the fund to the executing court or collection of funds by the creditors.
2. When creditors have attached the settlement and clearing fund provided to the TSEC in accordance with Article 2 of the Taiwan Stock Exchange Corporation (below referred to as "the TSEC") Contract for Use of the Centralized Securities Exchange Market, the suspended firm shall first supplement an amount equal to the attached funds.
3. The suspended firm shall conform to the provisions of Articles 5 and 6 of the Standards Governing the Establishment of Securities Firms regarding the number of firm personnel and the site and facilities of the operating venue.
4 The suspended firm may not have a net worth less than one-half of its paid-in capital as prescribed under Article 142, Paragraph 1, Subparagraph 3 of the Operating Rules of the Taiwan Stock Exchange Corporation for a period of three successive months with no indication of improvement.
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Article 4
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In applying to resume trading, a suspended firm shall make application to the TSEC with the standard form and stipulated attachments. The TSEC will in principle base review on the written application but may, where necessary, perform an on-site inspection.
The criteria for judging conformance of the suspended firm's application with the provisions of the preceding article shall be the data contained in the application as of the date of receipt by the TSEC.
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Article 5
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The suspended firm may resume trading when its application is in conformance with the provisions of these Regulations, and shall file a letter of report with the competent authority.
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Article 6
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Documents required in the application for resumption of trading may be submitted to the TSEC, at the latest, seven business days prior to the date planned for resumption of trading. If a late submission delays TSEC processing of the application, the TSEC may postpone resumption of trading by the suspended firm.
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Article 7
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Where a suspended firm applies to resume trading and upon review is found not in conformance with these Regulations, following correction and provision of formal notice to the TSEC, the TSEC may, depending on conditions, allow resumption of trading or delay resumption of trading by the suspended firm.
Where a suspended firm applies to resume trading and upon review is found not in conformance with these Regulations, and when correction is not made, the TSEC may temporarily withhold approval for resumption of trading by the suspended firm.
Where a suspended firm applies to resume trading, the conditions of the two preceding paragraphs are found during review, and resumption of trading is postponed or approval for resumption of trading is temporarily withheld, the TSEC shall file a letter of report with the competent authority and shall request ratification by the board of directors of the TSEC.
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Article 8
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These Regulations and any amendments to them shall take force upon approval by the competent authority.
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