| Title： |
Regulations Governing Book-Entry Operations for Centrally Deposited Securities(2001.11.02) |
| Date： |
|
|
Article 2
|
Securities in the custody of the Centralized Securities Depository Enterprise (the "CSDE") and eligible for book-entry transfer shall be limited to the following:
1. securities listed on the stock exchange;
2. securities traded over the counter of securities firms; or
3. other securities approved by the Securities and Futures Commission (the "SFC").
|
|
Article 3
|
Centralized settlement of securities as referred to in the preceding Article by stock exchanges, Over-The-Counter Securities Exchanges ("OTCSE"), securities firms, and securities finance enterprises shall be conducted by book entry.
In order to conduct book-entry settlement as referred to in the preceding Paragraph, stock exchanges, OTCSE, securities firms and securities finance enterprises shall open accounts with the CSDE, and thus become participants of the CSDE.
Where the securities referred to in the preceding Article are pledged, participants may deliver the pledged securities by book-entry transfer.
An issuer that delivers non-physical securities by book-entry transfer shall open an account with the CSDE and thus become a participant of the CSDE
|
|
Article 4
|
Deposit or withdrawal of securities by a customer of a participant ("Customer"), and book-entry settlement or creation of pledges of the deposited securities shall be conducted in the name of the participant.
An issuer delivering non-physical securities by book-entry transfer, and its shareholders carrying out account transfer procedures, shall do so in the name of the participant.
|
|
Article 7
|
A Customer intending to have securities deposited with the CSDE in the name of a participant shall prepare and submit a completed account opening application together with a chop/signature specimen card, to the participant for new account application.
The participant, upon accepting a Customer's application for new account opening, shall enter into a contract with and provide a passbook to the Customer.
The contents of the contract referred to in the preceding Paragraph shall be determined by consultation among the Securities Dealers' Associations, and shall be filed with the SFC for approval.
The passbook as referred to in Paragraph 2 of this Article shall not be transferable nor be used as collateral.
|
|
Article 15
|
Securities eligible for deposit with the CSDE shall be limited to those actually owned by a participant or its Customers.
Stocks whose owners are entitled to defer the payment of tax as provided for in Articles 16 and 17 of the Statute for Upgrading Industries in force prior to the 31 December 1999 amendment, or in Article 13 of the Statute for Encouragement of Investment in force prior to the end of 1990, shall be calculated in the annual income of the CSDE for assessment of income tax.
In order to verify whether a Customer has actual ownership of the securities, a participant shall request the Customer to submit a purchase-sale confirmation slip or other supporting documents.
Where a Customer is appointed, pursuant to applicable laws or regulations, to sell securities that he or she does not own, the relevant participant shall, after the said securities sale transaction is made, verify the ownership supporting documents and power of attorney submitted by the owner. The limitations placed by the preceding three Paragraphs shall not apply.
|
|
Article 26-1
|
Where an issuer of securities of the same class delivers securities by book-entry transfer without printing physical certificates of such securities, withdrawal procedures for its Customers shall be in accordance with the rules prescribed the CSDE.
|
|
Article 29
|
While a participant is conducting the settlement for centralized securities which will be delivered by securities firms and securities finance enterprises to the stock exchange or OTCSE, the CSDE shall, in accordance with the "Calculation Table for Settlement" or the "Calculation Table for Delivery", transfer the said securities from the "sub-account pending settlement" on the relevant participants' account books to the accounts of the stock exchange or of the OTCSE within the prescribed time period for settlement.
Where the balance in the account of a securities firm or securities finance enterprise is insufficient for settlement, the CSDE shall nevertheless transfer the existing balance to the account of the stock exchange or of the OTCSE, and notify the stock exchange or OTCSE to take appropriate action on this matter.
For the securities to be delivered by the stock exchange or the OTCSE to securities firms or securities finance enterprises, the CSDE shall, in accordance with the notification of the stock exchange or OTCSE, transfer the said securities to the accounts of securities firms or securities finance enterprises.
When a participant is conducting balance settlement for emerging stock transactions, for stocks that shall be delivered by securities firms to the CSDE, the CSDE shall, in accordance with the "Calculation Table for Delivery," transfer the stocks from the "sub-account pending settlement" on the relevant participants' account books to the account of the CSDE. For stocks that shall be received by a securities firm from the CSDE, the CSDE shall transfer the stocks from its account to the account of the securities firm.
When participants conduct real-time gross settlement of emerging stock transactions, the CSDE shall, after receiving notice from both participants, transfer the stock from the selling participant's CSDE account into the buying participant's CSDE account, and shall notify the participants to make the necessary entries into their Customer Account Books.
|
|
Article 29-1
|
When a transfer of securities by a Customer, otherwise than on the centralized securities exchange market or over-the-counter market, is carried out by book entry transfer, the Customer shall submit the transfer information and relevant documentation to the participant along with its request to handle the transfer, in accordance with the provisions of the Criteria Governing the Processing of Securities Matters by Public Issuers. The participant, after making the necessary entries in the Customer Account Books, shall notify the CSDE of the securities that should be transferred and delivered from the Customer to the transferee and the relevant certification or other information.
Upon receiving the notification from the participant, the CSDE shall submit the certification or information in the preceding paragraph to the issuer for verification. Once it has been verified as correct, the CSDE shall transfer such securities from the "sub-account pending settlement" on the transferor's participant account book to the "sub-account of the Customers" on the transferee's participant account book.
The provisions of the preceding two paragraphs shall apply mutatis mutandis to transfers of securities by participants otherwise than on the centralized securities exchange market or over-the-counter market.
|
|
Article 30
|
Where a Customer requests to transfer the balance of securities from the Customer's account with one participant to the Customer's account with another participant, the Customer shall submit the account passbook and an application to the former participant and such participant shall notify the CSDE to transfer the balance to the Customer's account with the new participant; provided, this shall not apply where there are other regulatory restrictions regarding the securities for which the application for transfer is made.
The CSDE shall, after making account transfer in accordance with the notification as referred to in the preceding Paragraph, record immediately on the relevant participants' account books, and notify such participants to record necessary information on the Customer's account books.
|
|
Article 30-5
|
An issuer that delivers securities by means of book-entry transfer shall compile in a computer medium a list of the names of the securities to be delivered by book-entry transfer, and deliver it to the CSDE before the date of the book-entry transfer delivery, accompanied by the relevant certification for the securities of that issue.
On the transfer date, the CSDE shall transfer the securities into the Customer's account with the participant in accordance with the content of the computerized list of the names of the securities to be delivered by book-entry transfer as referred to in the preceding paragraph. If the securities owner has not opened an account with the participant, the securities delivered by book-entry transfer shall be recorded in the "entry sub-account" of the CSDE's issuer account book.
After carrying out delivery by book-entry transfer in accordance with the preceding paragraph, the CSDE shall make the necessary entries in the participant's account book, and notify each participant. Each participant shall then make the necessary entries in their Customer Account Books.
A securities owner referred to paragraph 2 shall first open an account with the participant and carry out transfer of the securities to its account in accordance with CSDE rules prior to carrying out any book-entry transfer procedures for the withdrawal, sale, or pledge of such securities.
|
|
Article 31
|
A participant shall, within two days after the commencement of the issuing company's publicly announced record date to suspend the ownership transfer registration due to convening of a shareholders' meeting or creditors' meeting, or declaration of dividends, bonuses or other profits, or repayment of principal and payment of interest, prepare and submit to the CSDE a list of all securities owners whose securities have been deposited with the CSDE one business day prior to the record date. Such list shall record such information including names, personal identification card numbers, or company uniform numbers, or tax withholding numbers, residence or domicile, and the quantities of securities held by each securities owner.
The provisions of the preceding paragraph shall apply mutatis mutandis to government bonds and other securities.
|
|
Article 32
|
The CSDE shall, within three days after the commencement of the issuing company's publicly announced record date to suspend the ownership transfer registration due to convening of a shareholders' meeting or creditors' meeting, or declaration of dividends, bonuses or other profits, or repayment of principal and payment of interest, compile such securities owner lists that have been prepared by the participant as referred to in the preceding Article and notify the relevant issuing company of such information including serial numbers of the deposited securities, names ofsecurities owners, securities owners' personal identification card numbers or company uniform numbers or tax withholding numbers, residence or domicile, and the quantities of securities held by eachsecurities owner.
Information regarding the serial numbers and total quantities of the deposited securities as referred to in the preceding Paragraph shall be based upon the securities which have been deposited with the CSDE one day prior to the said record date.
The provisions of the preceding two paragraphs shall apply mutatis mutandis to government bonds and other securities.
|