Foreign Investors Now Allowed to Apply to Securities Brokers for Capital Financing
Foreign Investors Now Allowed to Apply to Securities Brokers for Capital Financing
Following its opening of securities borrowing by overseas Chinese and foreign investors (see Issue 69 of this publication), the Financial Supervisory Commission (FSC) issued an explanation on Sept. 13 that allows overseas Chinese and foreign investors abroad to apply to securities finance companies for capital financing needed to settle trades in securities listed on the stock or over-the-counter market without being subject to the restriction imposed by Item 3, Article 21 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals. This relaxation will facilitate the flexible use of funds and strengthen willingness to invest in the Taiwan stock market.
The FSC points out, however, that overseas Chinese and foreigners who engage
in securities financing will still be required to do so in accordance with the
regulations, including the rules requiring the custodial institution to set up
an account for capital utilization and inventory data, keep detailed records day
by day, and report to the FSC and the Central Bank within 10 days after the end
of each month. For details on the FSC explanation, please consult this website: http://www.fscey.gov.tw/text/news_detail.aspx?icuitem=1918217.
Back
to News Page