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Amendments

Title：

Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms  CH

Amended Date： 2015.11.26 
Article Content Content Search Article No. Search Legal Basis Subordinate Legislation Amended Article Legislative History Chinese

Title： Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms(2015.01.21)
Date：
Article 3     A securities firm applying to conduct margin purchase and short sale business shall meet the following requirements:
  1. The most recent financial report audited by the certified public accountant shows a net worth of not less than NT$200 million;
  2. Have operated securities brokerage business for one (1) year or more;
  3. The most recent financial report audited by the certified public accountant shows net worth per share of not less than par value, and financial status meeting the requirements under the Regulations Governing Securities Firms;
  4. Have not been issued a warning by the competent authority under subparagraph 1 of Article 66 of the Act within the last three (3) months;
  5. Have not been sanctioned by the competent authority by ordering the securities firm to discharge a director(s), supervisor(s), or managerial officer(s) under subparagraph 2 of Article 66 of the Act within the last six (6) months;
  6. Have not been sanctioned by the competent authority by suspending its business operation under subparagraph 3 of Article 66 of the Act within the last year;
  7. Have not been sanctioned by the competent authority by revoking the permit for establishing a branch office according to Article 57, paragraph 1 of Article 59, or subparagraph 4 of Article 66 of the Act within the last two (2) years;
  8. Have not been sanctioned by the stock exchange, OTC Exchange, or futures exchange by imposing a penalty or suspending or restricting trades in accordance with its rules within the last one (1) year;
  9. Regulatory capital adequacy ratio during the half-year period preceding the date of application was not less than 150 percent; and
  10. Other requirements prescribed by the competent authority.
    The competent authority may, depending on the domestic economic and financial status and the conditions of securities markets and securities firm business, adjust the requirements in subparagraph 1 of the preceding paragraph.
    In cases where a securities firm has failed to meet a condition in subparagraphs 4 to 8 of paragraph 1, but where concrete improvement has been made and the competent authority has granted consent, the securities firm may be exempted from restriction thereunder.
    After a securities firm is approved by the competent authority to conduct securities trading margin purchase and short sale business, if its regulatory capital adequacy ratio falls below 150 percent for two consecutive months, it shall suspend such business, which it may resume only after the securities firm is in compliance with the requirement for 3 consecutive months and is approved by the competent authority; the same requirement shall apply to a securities firm that has already received approval to conduct such business but has not yet commenced it.