|
Article 5
|
Participants in the use of domestic securities as collaterals for offshore investment activities by overseas Chinese and foreign nationals shall meet the following qualification requirements:
- Collateral providers: Those who have registered for investment in domestic securities in accordance with Article 10 of the Investment Regulations, or approved by the Competent Authority or the TWSE for investment in domestic securities, and are the foreign institutional investors under Article 3, paragraph 2 of the Investment Regulations.
- Collateral receivers: Those who have met the requirements in the preceding paragraph, are a provider of funds in the borrowing of funds in foreign currency in the third paragraph of the preceding article, and are approved by offshore financial Competent Authority to do business as a bank or securities firm.
- Collateral custodians: Only the banks or securities firms that have been approved by the Competent Authority to provide custodian services, and have acted as an agent for offshore overseas Chinese and foreign nationals in their registration of investment in domestic securities.
- Collateral managers: Only those who have been approved by offshore financial Competent Authority to provide banking services.
Overseas Chinese or foreign nationals who act as providers of funds for borrowing of funds in foreign currency in the second subparagraph of the preceding paragraph should issue a statement undertaking they have met the qualifications in the preceding paragraph to be provided to the custodian appointed under Article 17 of the Investment Regulations (Investment Custodian) for verification by the collateral custodian.
|