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Article NO. Content

Title:

Taiwan Securities Association Rules Governing Underwriting and Resale of Securities by Securities Firms  CH

Amended Date: 2021.03.31 (Articles 4-1, 6, 7, 8, 9, 11, 18, 21-3, 22-1, 22-2, 23, 24, 25, 27-1, 28, 30, 40, 41, 42-1, 43, 43-1, 44, 52, 52-1, 73 amended,English version coming soon)
Current English version amended on 2016.04.12 
Article 32     Except when permission is granted by the competent authority for the securities industry, in an underwriting case conducted by means of negotiated sale, the quantity allocated to an individual subscriber shall be regulated as follows:
  1. In a case of underwriting of ordinary corporate bonds and financial bonds not involving stock equity, the quantity allocated to an individual subscriber may not exceed 50 percent of the total quantity of securities in that underwriting case. This restriction does not apply, however, if the subscriber is an insurance company and the subscription will serve as an investment instrument of an investment-linked insurance product. If the subscribers are limited only to professional investors as defined in the Taipei Exchange Rules Governing Management of Foreign Currency Denominated International Bonds, the quantity allocated to an individual subscriber may not exceed 80 percent of the total quantity of securities in that underwriting case. This restriction does not apply, however, if the subscriber is a government fund.
  2. In a case of underwriting of corporate bonds from which the detachable warrants have been detached, the quantity allocated to an individual investor may not exceed 50 percent of the total quantity of the securities in that underwriting case.
  3. Not more than 20 percent of the total quantity of securities offered may be allocated to an individual subscriber in cases involving real estate asset trust beneficial interest securities, a secondary distribution of beneficial interest securities by a trustee institution, or a secondary distribution of asset-backed securities by a special-purpose company, provided that this restriction does not apply to a holder that is an independent professional investor. "Independent professional investor" means a juristic person or an institution under Article 13, paragraph 1, subparagraph 1 of the Real Estate Securitization Act, or a fund under Article 13, paragraph 1, subparagraph 2 of the same Act, and one that is neither an originator under the Financial Asset Securitization Act, nor an interested party thereof, nor an affiliated enterprise under the Company Act.
  4. In a case involving call (put) warrants or corporate bonds with warrants, not more than 10 percent of the total quantity of securities shall be allocated to an individual subscriber.
    If the securities referred to in the preceding paragraph are divided into different classes for issuance, the total volume of an underwritten offering shall be calculated as the total volume of a given single class of securities after the issue has been separated into different tranches.
    In an underwriting case conducted in accordance with the provisions of Article 31, paragraph 4, the number of units actually allocated to any individual subscriber shall not exceed 10 percent of the combined total of the portion of the offering put up for public sale to outside parties plus units allocated via overallotment; for a case conducted in accordance with the provisions of Article 31, paragraph 5, the number of units actually allocated to any individual subscriber shall not exceed 10 percent of the total number of units put up for negotiated sale, and the provisions of Article 27-1 shall be observed.