|
Article 21
|
When conducting securities margin purchase and short sale business, a securities firm may not use the proceeds derived from short sales and the margin deposited for short sales in the customer's account for any purpose other than those listed below:
- As a source of funds for conducting margin purchase business.
- As collateral for refinancing of securities by securities finance enterprises.
- As a source of securities to lend in conducting securities lending business.
- As collateral for borrowing securities through the Stock Exchange securities lending system.
- Bank deposit.
- Purchase of short-term bills.
A securities firm shall pay interest to customers for the amounts referred to in the preceding paragraph. The interest rate shall be prescribed by the securities firms and reported to the competent authority for recordation.
|