Taiwan Stock Exchange - Rules & Regulations Directory

Amendments

Title:
Operating Rules of the Taiwan Stock Exchange Corporation(2006.01.26)

Article 67-1
Where a listed company carries out procedures for capital reduction and issuance of new share certificates, the daily price limits on its stock for the date on which the stock begins to list after the capital reduction shall be calculated based on {the closing price of the final trading day prior to the issuance of the new share certificates} divided by {the ratio of its post-reduction capital amount to the original capital amount}. Provided, that where the company, because it is carrying out a company split, has filed to carry out the procedures for the split and capital reduction and issuance of new securities certificates as a consolidated case, the daily fluctuation limit of its stock for the date on which the stock begins to list after the capital reduction shall be calculated based on the closing price of the final trading day prior to the issuance of the new share certificates.
If under circumstances in the preceding paragraph share money is refunded to shareholders in the form of cash, the daily price limits on the stock for the date on which it begins to list after the capital reduction shall be calculated based on {the closing price of the final trading day prior to the issuance of the new share certificates minus the amount of the cash refund per share} divided by {the ratio of its post-reduction capital amount to the original capital amount}.

Article 75-4
Each headquarters and branch of a securities firm may open two omnibus accounts in its own name, for purposes of accepting securities trading orders from domestic and foreign specific principals respectively.
A specific principal may use an omnibus account only after opening a securities trading account; the omnibus account may be used to participate in ordinary trading (i.e., trading from 9 a.m. to 1:30 p.m. under Article 3 of the Operating Rules of this Corporation), after-market fixed-price trading, and odd-lot trading of this Corporation. It may also, after carrying out a securities borrowing transaction through a securities firm under this Corporation's Securities Lending and Borrowing Regulations, [use the borrowed securities] to trade through the omnibus account. A specific investor that is allowed by regulations to engage in credit trading may engage in credit trading through the omnibus account.
"Specific principals" under the preceding paragraph are limited to offshore overseas Chinese and foreign nationals, domestic institutional investors, and discretionary investment customers. The aforesaid "domestic institutional investors" are limited to domestic securities investment trust funds, government agencies, banks, and insurance and group enterprises (meaning "group enterprises" as defined in Article 6 of this Corporation's Supplementary Provisions to the Taiwan Stock Exchange Corporation Regulations for Review of Securities Listings).
If a specific principle has mandated a mandatary to conduct trades and handle allocation of trade prices and volumes, it shall provide a power of attorney and specify the allocation of trade price and volume and relevant authorized matters. If a mandatary is an institutional investor, the power of attorney shall be signed/sealed by that institutional investor. However, where a same mandatory is mandated by offshore overseas Chinese or foreign nationals, domestic funds, or units of a same group, the mandatary shall provide a statement specifying the principals' ID numbers or uniform invoice numbers, names, and other relevant information. This Corporation may, in accordance with operational needs, require securities firms to provide certifying documents relating to the aforesaid authorizations.

Article 75-5
When a securities firm accepts orders to trade securities through an omnibus account, it shall make trading quotes corresponding to the orders placed by the principals or the mandataries, and shall note the name or symbol of the principal or the mandatary on the order form or the trading order record.
The securities firm shall, based on the instructions of the mandatary, transmit to this Corporation by 4 p.m. the itemized allocations of trade price and volume and the itemized orders placed by mandataries.

Article 137
Where any securities firm fails to transmit the itemized allocations of trade price and volume and the itemized orders placed by mandataries as required under Article 75-5, this Corporation may impose a fine of thirty thousand New Taiwan Dollars if the delay is one hour or less, or an additional fine of ten thousand New Taiwan Dollars for each additional hour's delay.
Where any securities firm fails to key-in within the prescribed time period the clearing data in respect of margin purchases or short sales in accordance with Article 103, this Corporation shall impose a fine of thirty thousand New Taiwan Dollars if the delay is one hour or less, or an additional fine of ten thousand New Taiwan Dollars for each additional hour's delay.
Where any securities firm violates Subparagraph 1 or Subparagraph 2 of Article 104, this Corporation shall impose a fine of thirty thousand New Taiwan Dollars if the delay is one hour or less and the number of securities certificates in shortage is five thousand or less or the monetary sum which settlement has been delayed is fifty million New Taiwan Dollars or less, or a fine of forty thousand New Taiwan Dollars if it is more than five thousand in shortage or the sum is more than fifty million New Taiwan Dollars, or an additional fine of ten thousand New Taiwan Dollars for each additional hour's delay. However, the responsibility in the delay may be exempted if the securities firms can prove that the reasons for delay in settling moneys and securities are not attributable to them.
Securities firms shall pay the fine referred to in the preceding two Paragraphs to the Finance Division of this Corporation within two days after receiving notification of this Corporation.

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