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Article 7
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A SITE that issues overseas beneficial certificates for subscription by overseas Chinese and foreign nationals for the purpose of offering a securities investment trust fund shall apply to the FSC for approval within 1 month after obtaining an approval letter from the competent authority for foreign exchange business.
Inward remittance of the funds raised through the offering of the fund shall be handled in accordance with the applicable provisions of foreign exchange acts and regulations.
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Article 10
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Offshore overseas Chinese and foreign nationals wishing to invest in domestic securities shall apply to the TWSE for registration in accordance with the TWSE operating rules and bylaws by submitting the relevant documents; provided, however, that this requirement shall not apply to onshore overseas Chinese and foreign nationals investing in government bonds, financial bonds that do not confer equity rights, straight corporate bonds, or open-ended beneficial certificates.
Offshore overseas Chinese and foreign nationals applying to complete the registration set forth under the preceding paragraph shall submit an application form together with the following documents:
- The power of attorney for agent or letter of appointment for representative.
- Identification documents conforming to Article 3, paragraph 2.
- Other documents as required by the FSC.
Overseas Chinese and foreign nationals that have already completed registration with the Taiwan Futures Exchange Corporation (TAIFEX) and obtained qualification to engage in domestic futures trading are exempted from carrying out the registration procedures referred to in paragraph 1.
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Article 16
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An offshore overseas Chinese or foreign national investing in domestic securities shall appoint a local agent or representative to undertake matters such as opening accounts for trading in domestic securities; applying to exchange, convert into, or subscribe to domestic corporate bonds; exercising rights in purchased securities; applying for exchange settlement; and paying taxes.
The required qualifications for the agent or representative in the preceding paragraph are as follows:
- Requirements for an agent:
- If a natural person: Must have legal capacity. In the case of an overseas Chinese or a foreign natural person, he or she must be residing in the territory of the ROC with an Overseas Compatriot Identity Certificate, or holding an ROC passport with an Overseas Compatriot Identity Endorsement, or holding an Alien Resident Certificate.
- If a juristic person: Must be established in accordance with ROC laws and qualified to act as an agent.
- If a foreign juristic person: Must have established a branch company within ROC territory and be qualified to act as an agent.
- Requirement for a representative: Must be the representative at a representative office established in the ROC, or be the responsible person at a branch office.
Where an agent is either a juristic person or a foreign juristic person as set forth under subparagraph 1, items 2 and 3 of the preceding paragraph, one natural person must be designated to carry out the services of agent.
An offshore foreign institutional investor holding shares in a public company shall appoint a domestic agent or representative to exercise the voting rights attaching thereto unless otherwise provided by law.
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Article 17
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An offshore overseas Chinese or foreign national that invests in domestic securities shall designate a bank or securities firm approved by the FSC to act as its custodian institution and to handle related matters, such as custodianship of funds and certificates related to securities investments, confirmation of trades, transaction settlement, and reporting of relevant information. When a securities firm acts as the custodian institution, the funds of its customers shall be deposited in a segregated account opened at a bank approved by the FSC.
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Article 19
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An overseas Chinese or foreign national applying to a securities firm to open an account for securities trading shall submit the registration documents from the TWSE or the TAIFEX.
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Article 20
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An offshore overseas Chinese or foreign national consigning trading of domestic securities to a domestic securities firm shall provide a record of the consignment. The appointed custodian institution shall confirm the trade and handle settlement procedures.
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Article 21
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An offshore overseas Chinese or foreign national shall use inwardly remitted investment capital for the purpose of investment in domestic securities in accordance with these Regulations and the provisions of other applicable acts and regulations, and shall, except as otherwise provided by the FSC, abide by the following provisions:
- It shall not engage in securities margin trading.
- It shall not sell securities it does not hold.
- It shall not extend loans or provide security.
- It shall not entrust custody of securities to any juristic person or individual other than a custodian institution or centralized securities depository.
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Article 23
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The FSC may, when necessary, require an offshore overseas Chinese or foreign national to submit the following information:
- A list of beneficial owners of the investment capital, the amount of the capital, its source, and related information.
- Information on utilization of inward-remitted investment funds, securities trading details, and inventory information (the FSC may examine the securities inventories and accounts).
- Detailed information on derivative products issued or traded offshore for which the stock of domestic public companies serves as the underlying securities; or detailed information on domestic public company stock held on behalf of a principal engaging in derivatives trading.
- Information on persons giving trading orders for investment in domestic securities, including their name, nationality, contact information, and other related information.
- Other information as specified by the FSC.
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Article 26
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Overseas Chinese and foreign nationals may apply for exchange settlement of distributions received for securities obtained under Article 24, and of proceeds obtained from the sale of such securities.
Overseas Chinese and foreign nationals may apply for exchange settlement, in one lump sum, of proceeds obtained from any allocation of residual assets of the company issuing the corporate bonds.
Overseas Chinese and foreign nationals applying for exchange settlement pursuant to the preceding two paragraphs shall comply with the applicable foreign exchange acts and regulations.
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Article 27
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Where an overseas Chinese or foreign national exchanges, converts into, or subscribes to the securities issued in the ROC by an issuing company under Article 24, the inward remittance of funds deemed to be investment capital shall be entered into the accounts set forth under Article 22; within 5 days this information shall be reported to the competent authority for foreign exchange business, and shall at the same time be provided to the TWSE for registration.
Where an inward remittance contemplated under the preceding paragraph is made, the amount thereof shall be added to the total figure for investments already made in domestic securities by the investor.
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Article 28
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Overseas Chinese and foreign nationals that have obtained stock shares pursuant to Article 24 may subscribe to new shares in accordance with the applicable provisions of the Company Act when the issuing company in which they have invested carries out a cash capital increase, and may apply for inward remittance of the funds necessary for such subscription.
Overseas Chinese and foreign nationals making inward remittances of funds for share subscriptions pursuant to the preceding paragraph shall do so in compliance with the applicable foreign exchange acts and regulations.
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