|
2
|
A securities firm conducting securities business money lending shall do so in accordance with securities trading laws and regulations, these Operating Rules, and the relevant bylaws, regulations, public announcements, and circular letters of the Taiwan Stock Exchange Corporation (TWSE), the Taipei Exchange (TPEx), and the Taiwan Depository & Clearing Corporation (TDCC).
Lending of money in connection with securities business ("securities business money lending") in these Operating Rules refers to any monetary financing business undertaken, pursuant to an agreement between a securities firm and a customer, to facilitate the settlement of customer purchases of securities and other commodities.
The scope of such financing includes the following:
- TWSE or TPEx listed stocks (including stock warrant certificates, certificates of entitlement to new shares, and certificates of payment for shares), call (put) warrants, beneficial certificates, depositary receipts, central book-entry bonds, municipal bonds, ordinary corporate bonds, financial bonds, convertible bonds, bond conversion entitlement certificates, beneficial interest securities, and asset-backed securities, excluding stocks and EFT beneficial certificates traded in foreign currency.
- TPEx traded beneficial certificates of open-end funds and physical gold.
- Subscription for beneficial certificates of open-end securities investment trust funds and of future trust funds.
- Public subscription or competitive auction of new shares before their TWSE or TPEx listing (including cash capital increase).
- Shares of the issuer for which its employees and existing shareholders may subscribe in the event the issuer issues new shares in a cash capital increase after its initial listing on the TWSE or TPEx.
- Others as approved by the competent authority.
For purposes of the preceding paragraph, TPEx traded beneficial certificates refer to the beneficial certificates of securities investment trust funds registered for trading on the Taipei Exchange under the Taipei Exchange Rules Governing the Review of Beneficial Certificates of Open-end Funds for Trading on the Taipei Exchange; securities investment trust funds refer to the trust funds in Article 23 of the Regulations Governing Securities Investment Trust Funds; and futures trust funds refer to the trust funds in Articles 8, 9, 10 and 10-1 of the Regulations Governing Futures Trust Funds.
The beneficial certificates of securities investment trust funds and those of futures trust funds as mentioned in the third paragraph are limited to domestic investments if denominated in New Taiwan dollars.
The scope of financing referred to in the third paragraph does not include shares subject to a margin purchase and short sale, block trading, odd-lot trading, auction, tender offer or altered trading method, or TPEx managed stocks.
The amount of securities business money lending conducted by a securities firm is limited to the amount, as well as the relevant processing fees and taxes, payable by each customer after netting the prices of securities bought and sold by that customer on that trading day.
A securities firm conducting securities business money lending for a financing period not exceeding 30 days may post collateral in the form of new shares subscribed for by a customer being an employee or an existing shareholder of an issuer as issued by the issuer in a cash capital increase after its initial listing or after its listing on the TWSE or TPEx (Subscription Lending). The dollar amount is the stock payment less the margin payable by the customer. The preceding paragraph does not apply.
|