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Article 16-1
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An issuer or the risk management institution it entrusts may engage in the sale of borrowed securities involving the underlying security in accordance with Article 82-2 of the Operating Rules of the TWSE or in the sale of securities borrowed from a securities firm or securities finance enterprise that conducts securities borrowing and lending business, that involve the underlying security.
Where the issuer employs short sales of the underlying securities as a hedging instrument in accordance with the preceding paragraph, said issuer shall open a margin account with another securities firm or with the securities finance enterprise of a non-affiliated enterprise and shall report the account information to the TWSE in writing.
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