| Title： |
Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals(2004.06.15) |
| Date： |
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Article 4
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ROC securities in which overseas Chinese and foreign nationals outside the ROC may invest shall be limited to the following:
1. stocks, bond conversion entitlement certificates, and Taiwan depositary receipts issued or privately placed by listed, over-the-counter ("OTC"), or emerging-stock companies;
2. security investment trust fund beneficiary certificates;
3. government bonds, financial bonds, ordinary corporate bonds, convertible corporate bonds, and corporate bonds with warrants;
4. beneficial securities placed publicly or privately by trustee institutions, or asset-backed securities placed publicly or privately by special-purpose companies;
5. call warrants and put warrants; and
6. other securities as approved by the competent authority for the securities industry.
Where funds have been transferred to Taiwan for the purchase of any of the securities listed in the preceding paragraph but the funds have not yet been invested, the Ministry of Finance may, depending on domestic economic and financial conditions and the state of the securities market, limit the use of such funds. The percentage of any investment cap shall be determined by the competent authority for the securities industry after consultation with the competent authority for foreign exchange business.
Overseas Chinese and foreign nationals outside the ROC investing in ROC securities may, as necessary for hedging purposes, engage in futures trading in the ROC futures market. Applicable regulations shall be prescribed by the competent authority for the securities industry after consultation with the competent authority for foreign exchange business.
Where a trust fund offered and issued overseas by a SITE invests in ROC securities, the range of securities in which it is allowed to invest shall be subject to the provisions of the Regulations Governing Securities Investment Trust Funds.
Except as otherwise provided by law, overseas Chinese and foreign nationals located within the ROC may invest in an unrestricted range of securities, and may furthermore engage in futures trading subject to the mutatis mutandis application of the provisions of paragraph 3.
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Article 10
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Overseas Chinese and foreign nationals outside the ROC wishing to invest in ROC securities shall apply to the TSEC for registration in accordance with TSEC operating rules and bylaws by submitting the relevant documents; provided, however, that this requirement shall not apply to overseas Chinese and foreign nationals within the ROC investing in government bonds, financial bonds that do not confer equity rights, ordinary corporate bonds, or open-ended beneficiary certificates.
Overseas Chinese and foreign nationals outside the ROC applying to complete the registration set forth under the preceding paragraph shall submit an application form together with the following documents:
1. a Power of Attorney for Agent or Letter of Appointment for Representative;
2. identity documents conforming to the provisions of Article 3, paragraph 2;
3. other documents as required by the SFC.
Where any of the following descriptions applies to the dedicated account of an overseas Chinese or foreign national outside the ROC, an agent or representative within the ROC shall contact the TSEC to cancel the registration set forth under paragraph 1:
1. no funds have been deposited into the account for three consecutive years, and there are no assets in the account; or
2. all assets have been withdrawn from the investment account.
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Article 14
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An overseas Chinese or foreign national outside the ROC who invests in ROC securities may apply for exchange settlement of investment capital, earnings on investments, and proceeds from the sale of borrowed securities; provided, however, that exchange settlement is only permitted for those capital gains and stock dividends that constitute realized gains.
Applications for foreign exchange settlement pursuant to the preceding paragraph shall be handled in accordance with the applicable foreign exchange acts and regulations.
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