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Article 8
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Earnings derived from securities investment trust funds issued by SITEs may be distributed to the beneficiaries of overseas beneficial certificates, provided that capital gains and stock dividends are distributed from realized gains only.
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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 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 22
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A custodian institution shall establish accounts in which information on the utilization of the funds and securities inventories of each offshore overseas Chinese or foreign national shall be recorded on a daily basis, and the previous day's inward and outward remittances shall be reported to the competent authority for foreign exchange business. Within 10 days of the end of each month, such party shall produce a statement of trades, inward and outward remittances of funds, and securities inventories for the previous month; 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.
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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 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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