| Title： |
Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals(2000.11.29) |
| Date： |
|
|
Article 2-1
|
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.
|
|
Article 10
|
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.
|
|
Article 14
|
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.
|
|
Article 21
|
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.
|
|
Article 23
|
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.
|
|
Article 26
|
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.
|