Taipei Exchange

1. Investors are required to transfer stocks on their own.
2. Investors are required to complete stocks transferring through the main board companies" shareholder services department or shareholder services agent by 5 p.m. of one business day following the ex-right or ex-dividend date.

1. The same rules apply to TWSE-listed stocks. Investors should deposit funds payable in their bank accounts for the stocks bought by 10 a.m. of the second business day following the trade date and the securities firms will notify the settlement banks to make the deduction.
2. The same rules apply to TWSE-listed stocks. The stocks bought will be credited to the investors’ central depository account after 11 a.m. of the second business day following the trade date, when investors’ securities firms completes settlement with TPEx.

1. The same rules apply to TWSE-listed stocks. The stocks bought will be debited to the investors’ central depository account on the current trading date.
2. The same rules apply to TWSE-listed stocks. The funds of stocks sold will be credited to the investors’ bank  accounts on the second business day following the trade date.

The criteria for investors to apply for a margin account (both for TWSE-listed and TPEx-listed securities) offered by securities firms includes:

1. A natural person with nationality of the ROC at the age of 20 or an institutional person organized and registered under the laws of the ROC.
2. The applicant has opened a consignment trading account for at least three months.
3. The applicant has settled 10 or more transactions of consignment trading during the most recent year with an accumulated transaction value of 50% of the applied maximum loan value. This also applies to a consignment trading account opened for less than one year.
4. The applicant "s income and assets during the most recent year is at least 30% of the applied maximum loan value, except where the amount limit for margin purchases applied for is less than NT$500,000.

The above trading records and holding account periods could be viewed based on the applicant"s securities positions of TWSE and TPEx.

The duration of a securities trading margin purchases and short sale is six months. A customer may apply for extension prior to the expiration of the duration. The number of such applications allowed is two. A securities firm shall review a customer"s credit status before granting an extension.

The aforementioned rules apply to both TPEx-listed securities and TWSE-listed securities.

Amount limits for margin purchases and short sales of TPEx-listed and TWSE-listed securities shall be calculated in the aggregate.

A securities firm usually assesses the amount limits  for margin purchases and short sales based on its own risk-bearing capacity and customer’s  financial capability.

When conducting such assessment, a securities firm shall implement an internal control over the amount limit for margin purchase and short sale applicable to its customers and establish the operating procedures for management of amount limit for margin purchase and short sale applicable to its customers.

Margin purchases and short sales of the same TPEx-listed security on the same day can be offset.

For more detailed information, please see Article 70 of the 「Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities」(2019.02.12  amended)

1. TPEx-listed common stock shares satisfying the criteria below will be eligible for margin purchase and short sale:
   (1)The shares have been listed on the TPEx for at least six months.
   (2)The net asset value per share at least reaches the par value.
   (3)The company has been incorporated and registered for at least three years.
   (4)Having a paid-up capital of NT$300 million or more.
   (5)Having had no accumulated losses in the latest financial year.
   (6) Having had netoperating income and profit before tax totaling 3% or more of paid-up capitalo n a standalone or consolidated basis in the latest financial year, but the company with a paid-up capital of NT$600 million or more may be exempted from application.
   (7) None of the following applies:
   1. Excessively intense share price volatility.
   2. Excessively concentrated equity ownership.
   3. Excessively irregular trade volume.
2. Different fromTPEx-listed common stock shares, TWSE-listed common stock shares only need to satisfy the criteria below:
   (1) The shareshave been listed on the TWSE for at least six months.
   (2) The net asset value per share at least reaches the par value.
   (3) None of the following applies:
   1. Excessively intense share price volatility.
   2. Excessively concentrated equity ownership.
   3. Excessively irregular trade volume.

1. For trading TPEx-listed ETFs (e.g. TPEx 50 ETF), investors can sell short below the last closing price without further constraint.
2. For trading the constituents of TPEx-listed ETFs (e.g. the  50 constituents of TPEx 50 ETF), whether  investors can  sell short below the last closing price depends on if the securities eligible for margin purchases/short sales or not. However, short sales below the last closing price would be suspended on the following trading day if the stock closes at its daily  limit down price, or in the absence of a closing price, and the lowest recorded sell order reaches  the daily limit down price.