According to Paragraph 2, Article 4 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals and the order of the Financial Supervisory Commission No. 1060007307 dated March 3, 2017,
I. Overseas Chinese and foreign investors may invest in government bonds, corporate bonds, financial debentures, money market instruments, money market funds, OTC equity derivatives, OTC NT dollar interest rate derivatives, OTC structured instruments and option trades on corporate bond asset swap (CBAS). Investments in money market instruments are limited to bills within 90 days of maturity.
II. “OTC NT dollar interest rate derivatives" include NT dollar forward rate agreements, interest rate swaps, and interest rate options. "OTC equity derivatives" include options and equity swaps of Taiwan equities which are denominated in either NT dollars or foreign currency, and options and equity swaps of foreign equities which are denominated in either NT dollars or foreign currency; "OTC structured instruments" includes structured instruments linked to domestic or overseas equities or interest rates which are denominated in either NT dollars or foreign currency.
III. The total amount invested by an overseas Chinese or foreign national in government bonds, corporate bonds, financial debentures, money market instruments, and money market funds, plus all NT dollar premiums paid for trades of OTC equity derivatives, OTC NT dollar interest rate derivatives, OTC structured instruments, and option trades on convertible bond asset swaps, plus the net settlement amount on price differences of swaps, must not exceed 30 percent of the net inward remittance. However, investment in privately placed convertible bonds needs not be included in the total amount of investment. If, after adding corporate bonds and financial debentures that were held prior to April 22, 2015, or government bonds with maturities over one year that were held prior to November 11, 2010, the amount exceeds the limit stated above, the bonds may be held to maturity, but no new positions in such bonds may be added.
IV. An overseas Chinese or foreign national that writes options must not apply, prior to maturity, for foreign exchange settlement for the premiums collected. This restriction does not apply, however, for transactions linked to foreign equity products that would thus require application for foreign exchange settlement.
V. This order is effective immediately; The FSC Order No. 0990064095 dated April 22, 2015 is repealed immediately.