| Title： |
Directions for Establishment of Margin Accounts With Securities Firms for Margin and Stock Loans(2003.04.15) |
| Date： |
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Article 2
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A principal applying to open a margin account and enter into a margin contract shall meet the following conditions, except in cases where renewing an existing contract at its expiration:
1. Be an ROC national of at least 20 years of age and with disposing capacity, or a juristic person organized and registered under the laws of the ROC.
2. Have opened a trading account for at least three full months.
3. Have had at least 10 trade orders executed during the most recent year, of an aggregate amount equal to at least 50 percent of the margin credit line applied for; this also applies where a period of less than one year has elapsed since the principal opened the trading account.
4. Have aggregate income and assets in the most recent year equal to at least 30 percent of the margin credit line applied for, unless the margin credit line applied for does not exceed NT$500,000.
When a principal applies to establish five or more margin accounts, the calculation of margin credit line under subparagraph 3 or 4 of the preceding paragraph shall include the margin credit lines approved for previously established margin accounts, and, where the property certificate is a certificate of deposit with a financial institution under Article 3, paragraph 1, subparagraph 2, the calculation shall be made based upon the average balance for the most recent month.
A principal renewing a margin contract during its term or at its expiration shall meet the requirements set out in paragraph 1, subparagraph 4.
A put warrants issuer may apply to establish a margin account without being subject to the requirements set out in paragraph 1, subparagraphs 2, 3, and 4, and paragraph 2.
A securities firm may raise the percentage under paragraph 1, subparagraph 3 or 4, as it deems necessary after assessment.
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