| Title： |
Operating Rules of the Taiwan Stock Exchange Corporation(2008.01.08) |
| Date： |
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Article 67
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In the trading of stocks, where a listed company distributes dividends, bonuses or other interests pursuant to paragraph 2 of Article 165 of the Company Act, and change to the shareholders list is suspended pending the record date (date on which registration of transfers is suspended), all settlements conducted after such date shall be considered to be ex dividend and ex right; provided that the provisions of this Article shall not apply to a capital increase out of employee bonuses.
The daily fluctuation limit after the distribution of dividends shall be based on the closing price of the previous day minus the amount of dividends and bonuses that have been distributed.
The daily fluctuation limit for the ex right date shall be calculated based on the following:
1.Where a listed company uses retained earnings or capital reserve to increase capitalization, the daily fluctuation limit for the ex right date shall be based on the closing price of the previous day minus the value of the distributed stock dividends.
2.Where a listed company uses cash capital to issue new stocks, the daily fluctuation limit for the ex right date shall be as follows:
(1) In case under cash capitalization the issue price of the newly issued stock is lower than the closing price on the day immediately preceding the ex right date, the daily fluctuation limit for the ex right date shall be the closing price on the day immediately preceding the ex right date for the purpose of determining the maximum high, and the closing price on the day immediately preceding the ex right date minus the value of the newly issued cash capitalization stock for the purpose of calculating the maximum low.
(2) In case under cash capitalization the issue price of the newly issued stock is higher than the closing price on the day preceding the ex right date, the daily fluctuation limit on the ex right date shall be the closing price on the day immediately preceding the ex right date minus the value of the newly issued cash capitalization stock for the purpose of determining the maximum high, and the closing price on the day immediately preceding the ex right date for the purpose of calculating the maximum low.
3.Where a listed company simultaneously uses retained earnings or capital reserve to increase capitalization, and also uses cash capital to issue new stocks, the daily fluctuation limit shall be calculated as follows:
(1) In case under cash capitalization the issue price of the newly issued stock is lower than the closing price of the day prior to the ex right date minus the value of the capitalized retained earnings or capital reserve, the daily fluctuation limit for the ex right date shall be the value of the closing price on the day immediately preceding the ex right date minus the value of the capitalized retained earnings or capital reserve for the purpose of calculating the maximum high, and the closing price on the day immediately preceding the ex right date minus the value of the capitalized retained earnings or capital reserve and value of the newly issued cash capitalization stock for the purpose of calculating the maximum low.
(2) In case under cash capitalization the issue price of the newly issued stock is higher than the closing value of the day prior to the ex right date minus the value of the capitalized retained earnings or capital reserve, the daily fluctuation limit for the ex right date shall be the value of the closing price on the day immediately preceding the ex right date minus the value of the capitalized retained earnings or capital reserve and the value of the newly issued cash capitalization stock for the purpose of calculating the maximum high, and the closing price on the day immediately preceding the ex rights date minus the value of the capitalized retained earnings or capital reserve for the purpose of calculating the maximum low.
4.In case any of the procedures in the above subparagraphs cannot be suitably used, the daily fluctuation limit for the ex right date shall be determined by this Corporation in view of the current circumstances.
The value of the rights referred to in the preceding paragraph shall be determined by this Corporation.
The matters relating to ex dividend and ex right in connection with securities eligible for margin purchase and short sale shall be handled in accordance with the Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities or the Operating Rules for Securities Finance Enterprises Handling Margin Purchases and Short Sales.
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