| Title： |
Operating Rules of the Taiwan Stock Exchange Corporation(2009.04.30) |
| Date： |
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Article 77-4
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To invest in domestic securities, onshore overseas Chinese and foreign nationals shall submit the relevant documents to a securities broker to carry out registration with the TWSE and obtain an identification number and submit the below-listed documents to the securities broker for purposes of opening an account for securities trading.
1. Overseas Chinese and foreign natural persons: passport and overseas Chinese identity certificate (or alien resident certificate).
2. Foreign institutional investor: Ministry of Economic Affairs Recognition Certificate, Ministry of Economic Affairs Company License, Business License, and National Identity Card (or Alien Resident Certificate or passport) of the responsible person.
Offshore overseas Chinese and foreign nationals shall carry out registration with the TWSE through their designated domestic agent/representative and obtain an identification number and submit photocopies of the domestic agent/representative's national ID card or alien resident certificate or a photocopy of the evidentiary documentation following company registration (or amendment registration) to the securities broker for purposes of opening an account for securities trading (provided, if such documents, for the same domestic agent/representative and having identical content, have already been submitted to and placed on file by the broker, they need not be resubmitted).
If the domestic agent under this Article is a bank approved by theBanking Bureau, Financial Supervisory Commission, Executive Yuan, to operate custodial business and it and the securities brokers handling account opening all have network authentication mechanisms, the documents for account opening may be transmitted electronically to open the account.
If any of the circumstances in Article 11 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals is present with respect to a registration by an overseas Chinese or foreign national, the TWSE shall not carry out registration; where registration has already been made, the registration shall be voided or revoked, and the securities broker that has opened an account shall be notified that it may not accept purchase orders. After the balance of the account has been liquidated by the account holder, the securities broker shall cancel the account and notify the TWSE of the circumstances of the closure of the case.
The registration operations of this Article shall be handled pursuant to the Operation Directions for Registration Applications by Overseas Chinese, Foreign Nationals, and Mainland China Investors to Invest in Domestic Securities or Engage in Domestic Futures Trading submitted by the TWSE to the Competent Authority for approval.
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Article 77-7
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A mainland China investor shall, after the investor's designated domestic agent or representative registers with the TWSE to obtain an ID number, submit to a securities broker a photocopy of the national ID card or alien resident certificate, or evidentiary documentation of company registration (or amendment registration), of the domestic agent or representative to open an account to trade securities.
When the domestic agent of a qualified institutional investor approved by mainland China’s competent authority for securities opens an account at a securities broker, in addition to the documents for account opening of paragraph 1, it shall also submit evidentiary documentation of mainland China’s competent securities authority's approval of the qualified institutional investor and documentation stating the overseas investment limit approved by mainland China’s competent authority for foreign exchange business to open an account to trade securities.
The provisions of Article 77-4, paragraph 3 shall apply mutatis mutandis to the term "domestic agent" as referred to in this Article.
If any of the circumstances of Article 8 of the Regulations Governing Securities Investment and Futures Trading in Taiwan by Mainland China Investors exist at the time of registration by a mainland China investor, the TWSE will deny registration; if the investor is already registered, the TWSE will cancel the registration and notify the securities broker that opened the account that it may not accept purchase orders. The securities broker, after liquidating the balance in that account, shall cancel the account and notify the TWSE regarding the conclusion of the case.
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Article 77-8
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If any stock (or certificate representing stock) issued by a foreign issuer becomes exchange-listed or OTC-listed in Taiwan, when the domestic agent or representative of a shareholder that is a mainland China national opens an account at a securities broker, in addition to the documents for account opening of paragraph 1 of the preceding Article, the domestic agent or representative shall also submit documentation issued by the foreign issuer's shareholder services agent evidencing that the mainland China national shareholder held the stock (or evidentiary certificate representing the stock) issued by that foreign issuer prior to its exchange-listing or OTC-listing in Taiwan. Such accounts are permitted to handle only the sale of stock issued by such foreign issuer, and may not be used for other securities trading.
If a company whose stock is exchange-listed or OTC-listed, pursuant to Article 28-2, paragraph 1, subparagraph 1 or Article 28-3 of the Securities and Exchange Act or Article 235 or Article 267 of the Company Act, awards securities to an employee or employees who are mainland China nationals, the company's overseas subsidiary or branch office will conduct registration for a Collective Investment Account for Mainland China Employees with the TWSE to obtain an ID number for purposes of handling the transfer, subscription, or distribution of securities to such employee or employees; when opening an account with a securities broker in such a case, in addition to the account opening documents required by paragraph 1, the following documents shall also be submitted:
1. An original copy of the undertaking stating that the overseas subsidiary or branch office of the company whose stocks are exchange-listed or OTC-listed is actually authorized by the employees that are mainland China nationals.
2. A photocopy of the documentation evidencing the Competent Authority's approval of, or effective registration for, the issuance of new shares or employee stock warrants, or the repurchasing of its own shares, by the company whose stock is exchange-listed or OTC-listed.
3. A photocopy of the meeting minutes at which the board of directors of the company whose stock is exchange-listed or OTC-listed approved the current instance of repurchase of its own shares for a share transfer to employees pursuant to Article 28-2, paragraph 1, subparagraph 1 of the Securities and Exchange Act, or issuance of employee stock warrants pursuant to Article 28-3 of the Securities and Exchange Act, or issuance of new shares pursuant to Article 235 and Article 267 of the Company Act.
The account of the preceding paragraph may be used only to sell stocks which such employees have obtained by exercising securities subscription rights or through transfer or distribution, and may not be used for any other securities trading.
The provisions of paragraphs 3 and 4 of the preceding Article shall apply mutatis mutandis to the registration operations of this Article.
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Article 99
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Unless otherwise provided by the TWSE, a securities dealer engaging in securities trading shall not quote the up-limit (or down-limit) of the daily trading limit as the purchase (sale) price.
A securities dealer that trades securities for purposes of meeting hedging needs in connection with call (put) warrant issuance or financial derivatives trading, or acting as a liquidity provider for call (put) warrants or exchange-traded fund beneficial interest certificates, or subscribing to or redeeming exchange-traded fund beneficial interest certificates, may separately establish a segregated account for the trading quotes, free from the price restrictions of the preceding paragraph.
When the TWSE has concerns that a securities dealer's trading of securities may impact normal market circumstances, the TWSE may file with the Competent Authority to limit its trading volume or price for a portion of, or all, securities.
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