| Title： |
Regulations Governing Applications for Issuance of Call (Put) Warrants by Issuers(2010.04.07) |
| Date： |
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Article 8
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The underlyings to which call (put) warrants issued by an issuer are linked are limited to the following:
1. Stocks, baskets of stocks, exchange-traded securities investment trust funds, offshore exchange-traded funds, and Taiwan depositary receipts that are listed on the TWSE or GTSM and meet conditions prescribed by the TWSE or the GTSM.
2. Indexes as publicly announced by the TWSE or GTSM.
3. Any foreign security or index of a foreign securities market that meets the following requirements:
(1) A foreign securities market shall meet the conditions and fall within the scope set out below:
i. It must be organized as either a securities exchange or over-the-counter market and be regulated by the local competent securities authority.
ii. The sovereign rating of the country where the trading takes place shall have a rating of a certain grade or higher from a credit rating institution listed in Appendix 1.
iii. The scope of foreign securities markets is listed in Appendix 2.
(2) The foreign security or index of the aforementioned foreign securities market may not include any of the following items:
i. Securities issued or managed by the government of, or a company from, mainland China.
ii. Securities of a Taiwan enterprise traded on any foreign securities market, provided that this rule shall not apply to depositary receipts issued overseas by a Taiwan enterprise.
iii. Any Taiwan stock index compiled by a foreign or domestic institution, and related financial commodities, provided that this rule shall not apply if such index is compiled by the TWSE or GTSM, in cooperation with a foreign or domestic institution, with Taiwan stocks not being the major component shares.
(3) Any foreign security or index that meets requirements set forth by the TWSE or the GTSM.
If a company that issued any linked underlying referred to in the preceding paragraph is involved in a merger or acquisition, the FSC may suspend further issuance by an issuer of call (put) warrants on that underlying, and shall suspend the issue of warrants that an issuer has received permission to issue but has not yet issued, provided that call (put) warrants already issued shall remain valid.
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Article 8-1
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When an issuance by the issuer of call (put) warrants linked with any foreign security or index as specified in Article 8, paragraph 1, subparagraph 3, involves inward or outward remittance of funds, permission shall be obtained from the Central Bank.
Where an issuer issues call (put) warrants as specified in the preceding paragraph, payment at exercise shall be limited to cash settlement.
When an issuer issues call (put) warrants as specified in paragraph 1 and undertakes related hedging transactions, foreign exchange settlement matters shall be carried out in accordance with the Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions.
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Article 15
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The securities exchange where offshore call (put) warrants are issued by an issuer shall meet the following conditions:
1. It must be organized as either a securities exchange or over-the-counter market subject to regulation by the local competent authority.
2. The sovereign rating of the country where the warrants are to trade shall have a rating of a certain grade or higher from a credit rating institution listed in appendix 1.
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Article 16
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If an issuer issues offshore call (put) warrants for which the linked underlying is a domestic security or index, the scope of the underlyings shall comply with the provisions of Article 8; if the linked underlying is a foreign security or index, the scope of the underlyings shall be handled pursuant to the requirements of the competent authority or exchange where the warrants are traded, provided that the mainland China stock price indices, securities listed on mainland China securities markets, and securities issued or managed by the government of, or a company from, mainland China may not be included.
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Article 17
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Where an issuance by an issuer of offshore call (put) warrants involves inward or outward remittance of funds, permission shall be obtained from the Central Bank.
When an issuer issues offshore call (put) warrants and undertakes related hedging transactions, foreign exchange settlement matters shall be carried out in accordance with the Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions.
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