|
Article 3
|
When using domestic securities as collaterals for offshore investment activities, overseas Chinese and foreign nationals should appoint an offshore collateral manager to handle verification of eligibility, portfolio, replacement, mark to market, booking, notice of addition, and instructions on default penalty with respect to the collaterals.
An offshore institution acting as a collateral manager in accordance with the preceding paragraph should appoint a collateral custodian meeting the requirements under Article 5, paragraph 1, subparagraph 3 as its agent for custody, receipt and delivery, and disposal of the domestic securities collaterals. A first-time collateral manager should appoint a collateral custodian to complete online registration with the TWSE.
A collateral custodian appointed to handle custody of domestic securities collaterals in accordance with the preceding paragraph should file an application, accompanied with relevant documents, to the TWSE.
|