The components of the underlying index shall meet all the following qualifications:
The above properties do not apply to an underlying index in the preceding paragraph approved by the competent authority to be not dispersed in accordance with Article 2 of the Issuance Regulations.
- Meet one of the following qualifications:
- Listed for trading on the TWSE exchange.
- Listed for trading on the GreTai Securities Market.
- Listed and traded on a foreign centralized securities market or over-the-counter market approved by the competent authority, and compliant with regulations regarding the types and scope of foreign securities which a securities firm may invest as determined by the competent authority.
- Listed for trading on the Taiwan Futures Exchange.
- Traded on a foreign futures exchange, or being futures trading that futures trust funds may invest as approved by the competent authority and futures-related spot commodities, and comply with the regulations governing the scope of utilization of funds by securities firm.
- Being other instruments approved by the competent authority.
- The components of the index shall have the following properties:
- The components of the index shall be sufficiently dispersed. Indexes composed of securities shall contain more than 10 component securities, with the component of the highest weighted percentage accounting for not more than 30% of the index.
- The components of the index shall have a certain degree of liquidity.