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Article 77
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For any beneficial interest certificates that are eligible for margin purchases and short sales, if, after a general meeting of beneficial owners has been duly convened under the securities investment trust contract, any of the following circumstances consequently applies, margin purchases and short sales of those beneficial interest certificates shall be temporarily suspended from the second business day following the public announcement by the TWSE; provided, this restriction shall not apply to close-out trades. If a margin purchase or short sale has already been made, the trade shall be covered and closed out by repaying the margin loan or returning the borrowed securities by the first business day before delisting.
- where the general meeting of beneficial owners resolves to change to an open-end fund.
- where the beneficial interest certificates are open for redemption, and as a result the size of the fund reaches the standard for delisting.
If a customer fails to liquidate a margin purchase or short sale within the time limit under the preceding paragraph, the securities firm may dispose of its collateral beginning from the next business day by the mutatis mutandis application of Article 81, paragraph 3. However, this shall not apply if the customer has, within the time limit under the preceding paragraph, completed a mandate contract requesting the securities firm to perform redemption on its behalf after delisting.
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