| Title： |
Regulations Governing Securities Trading on the GreTai Securities Market(2001.09.28) |
| Date： |
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Article 1
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These Regulations are prescribed in accordance with paragraph 2 of Article 62 of the Securities and Exchange Act.
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Article 2
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The term "trading of securities on the GreTai Securities Market (GTSM)" as used in these Regulations means that the securities are not traded by competitive auction on the central stock exchange, but rather are traded over the counter specially provided by securities firms, and such trading may simply be referred to as "GTSM Trading."
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Article 3
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Securities firms operating GTSM trading shall report to the Securities and Futures Commission of the Ministry of Finance (hereinafter called "the Commission") for its approval pursuant to the relevant rules.
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Article 4
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Securities traded on the GTSM shall be limited to stocks that are publicly issued pursuant to the Securities and Exchange Act but not traded on the central stock exchange, and other securities designated by the Commission.
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Article 5
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Except for bonds issued by the government and other securities designated by the Commission for handling by the Commission on its authority, the issuers of other securities shall file an application with the GreTai Securities Market for GTSM listing or registration.
Where the stocks or bonds of corporations are already traded on the GTSM, and such corporations issue new shares or re-issue bonds, in addition to handling such pursuant to the related provisions and regulations, such corporations shall also report to the GTSM within 30 days of the issuance.
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Article 6
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GTSM trading of securities shall be effected on a spot cash and stock basis.
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Article 7
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The GTSM shall prescribe Rules Governing Securities Trading on the GTSM by including the following items and report to the Commission for its approval:
1. The application for and the termination of GTSM trading of securities.
2. Trading on behalf of itself or on behalf of clients and the way of differentiating both.
3. The way to execute the brokerage trading contract.
4. The business hours and the unit of trading.
5. The way to publicly disclose trading price.
6. The unit or range of price increase or price decrease and the standard for determining price for initial GTSM trading.
7. The timing and method of settlement and delivery.
8. The transfer procedure of traded securities.
9. The arbitration and handling of the disputes of securities trading and violation of regulations.
10. Other related items of GTSM Trading.
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Article 8
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The GTSM shall prescribe Rules Governing the Review of Securities for Trading on the GTSM and report to the Commission for its approval.
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Article 9
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When the GTSM considers securities to be qualified for GTSM trading, it shall sign the contract for securities trading on the GTSM with their issuer, and except for securities where application is made for registration, shall report to the Commission for its approval prior to approval for GTSM trading.
In the case of securities for which application for registration is made as referred to in the preceding paragraph, the GTSM shall report such to the Commission for recordation.
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Article 10
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The termination of GTSM trading of securities, with the exception of securities where application is made for registration, shall be reported by the GTSM to the Commission for its approval pursuant to the provisions of related laws and regulations or the contract of the preceding Article.
In cases of securities for which application for registration has been made as referred to in the preceding paragraph, the termination of trading of securities shall be reported by the GTSM to the Commission for recordation.
Where the termination of GTSM trading of securities is approved by the Commission, the effective date of termination shall be designated and such date shall be considered as the date of termination of the GTSM trading contract.
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Article 11
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Suspension or resumption of GTSM trading of securities by the GTSM pursuant to the provisions of related laws or regulations, the GTSM trading contract, or for the protection of the public interest shall be reported to the Commission for its approval, with the exception of securities where application is made for registration.
Suspension or resumption of trading of securities for which application for registration is made as referred to in the preceding paragraph shall be reported by the GTSM to the Commission for recordation.
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Article 12
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Where the issuers of securities traded on the GTSM violate the Securities and Exchange Act or the order promulgated pursuant thereto, the Commission for the protection of public interest may order the GTSM to suspend or terminate the trading of the securities.
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Article 13
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GTSM trading of registered securities shall be endorsed by the holder thereof.
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Article 14
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Brokerage trading fee rates shall be reported to the Commission for its approval by the Securities Dealers Association after consultation with the GTSM.
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Article 15
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Securities firms handling brokerage trading of securities shall prepare and deliver a GTSM trade report to the principle when a trade is executed.
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Article 16
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Where the situations described in Article 156 of the Securities and Exchange Act occur to securities traded on the GTSM, paragraph 3 of Article 62 thereof shall be applicable by mutatis mutandis application of the provisions of Article 156 thereof by the Commission.
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Article 17
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The issuers of securities of GTSM traded securities, unless otherwise provided by law or regulation, shall at the end of each semi-annual business year and within 15 days of completing settlement of accounts report to the Commission and publicly announce the financial statement audited and attested by a certified public accountant.
The financial statement of the preceding paragraph shall be copied and sent to the GTSM for the public to review.
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Article 18
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These Regulations shall take force from the date of promulgation.
With the exception of amended Articles 5, 9, 10 and 11, which shall take force on 1 January 2002, all other amended articles herein shall take force on the date of promulgation.
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