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Article 17
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With the exception of trading in the underlying security during the term of validity of the warrants for hedging write-off purposes or under circumstances otherwise prescribed by the TSEC, the securities-dealing division of a securities firm issuing call (put) warrants may not purchase or sell said underlying security. Shares already held by the securities-dealing division prior to issuance shall be calculated as part of the total number of shares held under the hedging write-off strategy. In the case of entrusted external hedging, the risk management institution employed may not engage in buying or selling of the underlying securities on its own account.
Where the issuer is a foreign institution; its the branch institution within ROC territory or the dealing department of the branch institution established within ROC territory by a wholly directly or indirectly owned subsidiary may not engage in buying or selling of the underlying security during the period of validity of the abovementioned call (put) warrants.
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