When a securities firm conducts margin purchase and short sale business, during the valid period of a margin purchase or short sale relationship, if trading in the securities market is completely suspended or trading of a certain type of securities is suspended due to a natural disaster or other extraordinary event as determined by the competent authority and the time for resumption of transactions has not been decided, the securities firm shall notify its customers to close out margin purchases and short sales in the following manners within the agreed period:
- For securities acquired through margin purchase, redeem the securities by cash and withdraw the securities.
- For securities sold through short sale, cover the short sale with spot securities, and withdraw the monetary proceeds from the short sale and the margin. However, if unable to cover the short sale with spot securities, the securities firm may apply to the TWSE or TPEx to purchase the securities through public tender offer. The cost of the tender offer shall be borne by the short sale customer.