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Guidelines for the Exercise of Call (Put) Warrants by Issuers and Their Mandated Securities Firms:
- The securities firm mandated by the issuer of call (put) warrants shall, by 3:30 p.m., retrieve, through a computer connection with the TDCC, and print out a summary statement of the total volume of call (put) warrants for which the holder has requested exercise that day and the volume for which the issuer has applied for cancellation, and immediately notify the issuer.
- Upon notification by the issuer, the securities firm mandated by an issuer of warrants for which the method for performance upon exercise is "delivery of securities provided that the issuer may choose settlement in cash" must, by 4:30 p.m. on the day on which the holder requests exercise, input the volume for which the issuer desires cash settlement through the TDCC network connection. After the cut-off time, all performance will be done by "delivery of securities".
- Pursuant to Article 14 of the TWSE Rules Governing Trading of Call (Put) Warrants, liquidity providers of call (put) warrants shall apply to the TWSE for a central securities depository account before applying to list the warrants on an exchange. Except for call (put) options in that account for which exercise may not be requested, the TWSE shall, at expiration of the call (put) warrants, use that account to carry out book-entry transfer matters in connection with cancellations.
Pursuant to Article 14 of the TWSE Rules Governing Trading of Call (Put) Warrants, issuers of call (put) warrants and risk management institutions shall apply to the TWSE for a central securities depository account before applying to list the warrant on the exchange. The TWSE may use that account to carry out securities transfer for performance upon exercise.
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