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Taiwan Stock Exchange Corporation Securities Lending and Borrowing Regulations(2005.05.13) |
| Date： |
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Article 2
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A securities lending and borrowing transaction shall refer to an act that the lender agrees to lend the securities and the borrower shall redeliver the securities of same category and volume.
The term "securities borrowing needs" shall refer to securities borrowing by specific corporate institutions for purposes of transactions and performance and securities borrowing by securities firms or securities finance enterprises for purposes of settlement.
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Article 5
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The borrowers and lenders of securities for transaction needs and for performance shall be limited to the specific corporate institutions as follows:
1. Lenders: insurance companies, banks, investment and trust companies, securities investment trust companies (the raised funds), futures dealers, and others as approved by the competent authorities.
2. Borrowers: securities dealers, securities investment trust companies (the raised funds), futures dealers, and others as approved by the competent authorities.
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Article 6
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A borrower and a lender shall entrust a securities firm to handle securities lending and borrowing transaction after they have entered into "Letter of Entrustment for Securities Lending and Borrowing Transaction" with a securities firm, opened an account for securities lending and borrowing, a securities central depository account, and a deposit account at a financial institution, and reported to and been approved by this Corporation.
The "Letter of Entrustment for Securities Lending and Borrowing Transaction" shall contain the following particulars and its format shall be as shown in Appendix 1 hereto:
1. The borrower and the lender agree that the securities lending and borrowing transaction shall be subject to the "Letter of Entrustment for Securities Lending and Borrowing Transaction" and the "Master Contract of Securities Lending and Borrowing Transaction" entered into by and between the securities firm and this Corporation, as well as the ?Measures Governing Lending and Borrowing of Securities" and the relevant regulations and rules of this Corporation.
2. A securities firm may from time to time submit relevant information with regard to a borrower or lender’s account opening, details of transaction and inventory of securities, and securities borrowing positions for transaction needs or for performance, to this Corporation, or provide the same for review.
3. A securities firm shall report to this Corporation in regard to any violation by a borrower or a lender of the obligations to be performed under a securities lending and borrowing transaction or any breach of its representations, and shall handle the relevant matters in accordance with the instructions of this Corporation, and may terminate or rescind the Letter of Entrustment.
A borrower shall entrust the same securities firm to handle the securities lending and borrowing transaction and the sale of the object securities.
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Article 8
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The securities that can be the subjects of securities borrowing for transaction needs and for performance shall be publicly announced by this Corporation.
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Article 9
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The business hours for services rendered by this Corporation for securities borrowing for transaction needs and for performance shall be from 9:00 am to 2:30 pm of the market trading hours of the then current day; the business hours for redelivery of securities and withdrawal and substitution of collateral are from 9:00 am to 3:00 pm.
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Article 18
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The term of securities borrowing for transaction needs or for performance shall not exceed 6 months from the date of conclusion of the borrowing transaction.
A securities borrower may redeliver the borrowed securities at any time during the agreed term.
If the lender does not request early redelivery of the securities, the borrower may, from 10 to 5 business days before expiration of the lending period, submit an application to the lender via this Corporation for extension of the loan. If the lender does not give consent within three business days from the date it receives the notice, it shall be deemed to have refused.
In an application for extension of a loan under the preceding paragraph, no term or condition of the loan may be amended except the loan period. The extension period may not exceed six months, and only one extension may be given.
A lender of fixed-price transaction or a competitive-auction transaction may file an application for redelivery of the securities with this Corporation only upon expiry of 10 business days after the securities lending, and this Corporation will so inform the borrower.
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Article 22
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The collaterals for securities obtained by this Corporation on account of the securities lending and borrowing transaction shall be entrusted to the Securities Central Depository Enterprise for custody.
After a transaction of securities lending and borrowing has been concluded, the Securities Central Depository Enterprise shall mark on the borrowed securities.
The marked securities referred to in the preceding paragraph shall not be assigned, transferred and taken back, except where being used for redelivery of securities, transaction needs, performance, or transfer to the securities central depository account of the borrower opened at a custodian bank pursuant to these Measures.
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