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Article 28
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A securities finance enterprise shall establish operating rules for its re-financing business in connection with providing refinancing to securities firms and report the rules to the competent authority for its approval.
The operating rules referred to in the preceding paragraph shall expressly state the following items:
- The procedure for opening a refinancing account.
- Procedures for refinancing applications and repayment of securities, and the method of repayment.
- Refinancing amounts and the calculation and replenishment of margin and collateral.
- The collection, replenishment, and disposal of refinancing collateral.
- The utilization and method of custody of the securities obtained through refinancing.
- The exercise of rights in stocks and withholding tax on dividends from stocks purchased through refinancing.
- The items recorded in the refinancing account book.
- Termination and resumption of refinancing business.
- The procedures for borrowing securities and for reverse auction.
- Other items to be included under the competent authority regulations.
Securities finance enterprises providing re-financing to securities firms shall follow the operating rules of Paragraph 1.
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