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Taiwan Securities Association Rules Governing Underwriting and Resale of Securities by Securities Firms(2010.08.10) |
| Date： |
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Article 4
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In the underwriting of securities, a securities underwriter shall determine the offering price of the securities according to the following methods:
1. By competitive auction;
2. By book building; or
3. As resolved by negotiations between the underwriter and the issuing company, issuing institution, or holder of the securities.
The offering price referred to in the preceding paragraph shall refer to the unit price, stock price discount (premium) rate (applicable only where no bid deposit has been collected), coupon rate, conversion (exchange) premium ratio, and yield to put.
"Issuing institution" as used in these Rules refers to an institution that issues beneficial interest securities or asset-backed securities under one of the following circumstances:
1. where a trustee institution or a special-purpose company accepts financial assets in trust or in transfer from the originator, and issues beneficial interest securities or asset-backed securities based on those assets; or
2. where a trustee institution accepts transfer from a principal of real estate or real estate-related rights, and offers real estate asset trust beneficial interest securities to unspecified parties.
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Article 27
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The maximum quantity actually allocated to any single bidder in the book building process, with the exception of an initial listing of common shares on a stock exchange or an OTC market (which must be allocated in accordance with the provisions of Article 27-1), shall not exceed 10 percent of the portion of the offering that is put up for public sale; for ordinary corporate bonds, financial bonds not involving stock equity, corporate bonds from which the detachable warrants have been detached, real estate asset trust beneficial interest securities, the secondary distribution of beneficial interest securities by a trustee institution, or the secondary distribution of asset-backed securities by a special-purpose company, the amount may not exceed 20 percent of the total quantity underwritten.
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