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Article 23
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A stock exchange shall pay attention to the monitoring of the operations of finance and business and internal auditing for its members, securities brokers and securities dealers. In case any violation of laws or inappropriate matters is found, a stock exchange shall take proper actions immediately and notify the FSC.
In the event that a stock exchange learns, when engaging in the monitoring described in the preceding paragraph, that there are situations of losses caused by mismanagement or losses resulting in deterioration of credit or sudden events, or material defects in the internal auditing operations for its members, securities brokers or securities dealers, the stock exchange shall conduct a special investigation and give proper assistance.
A stock exchange shall conduct a special investigation in case that any of the members, securities brokers and securities dealers fail to fulfill the delivery obligation and shall guide the successor securities firm to take over its settlement affairs.
Handling procedures and rules of the preceding two paragraphs shall be jointly promulgated by the stock exchange and securities dealers association and filed with the FSC for review and recordation.
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Article 34
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In addition to handling appropriately, a stock exchange shall report the FSC the following matters:
- The centralized securities exchange market temporarily ceases part of the transactions of the market or closes the market due to sudden events of force majeure.
- Malfunctions or interruptions of the transaction system and the transaction information transmission system.
- Members, securities brokers and securities dealers fail to settle in time or are unable to settle.
- The confirmation and public handling status of the material information for listed companies.
- The monitoring and handling status of the centralized securities exchange market.
- Where there is major impact to its financial or business situation due to matters of litigation, non-litigation, administrative sanction, administrative litigation, commercial arbitration or settlement.
- Auditing result regarding the financial report of the securities firms and listed companies.
- Reviewing condition of financial and business condition of members, securities brokers and securities dealers.
- Other matters designated by the FSC which shall be reported to the FSC.
In the event of any circumstance under subparagraphs 1 to 3 of the preceding paragraph, the stock exchange shall report to the FSC before the following day of the event. In the event of any circumstance under subparagraphs 4 to 6, the stock exchange shall report to the FSC within 5 days after the event takes place or after the handling finishes. And in the event of any circumstance under subparagraphs 7 and 8, the stock exchange shall report to the FSC the results of execution on a monthly basis.
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