Article 2 |
A securities investment trust fund (SITF), offshore overseas Chinese or offshore foreign national (individual or entity), insurance enterprise, or mainland area investor that invests in securities listed on the Taiwan Stock Exchange (TWSE), the Taipei Exchange (TPEx), or the TPEx Emerging Stock Board (ESB) shall appoint and authorize an institution approved for operating custody business ("custodian") to handle custody of securities or settlement of securities, and the relevant operations shall be handled in accordance with these Directions.
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Article 3 |
The custodian shall purchase its own computer equipment and connect to TDCC's mainframe computer, so that it can carry out operations, account opening, securities withdrawal, transfer, information query, and trade information transmission, for the SITF, offshore overseas Chinese or foreign national, insurance enterprise, or mainland area investor.
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Article 4 |
The custodian appointed and authorized by the SITF, offshore overseas Chinese or foreign national, insurance enterprise, or mainland area investor shall open a book-entry depository account ("depository account") with the TDCC to become a participant. The account opening procedure shall be subject to Article 10 of the TDCC Operating Rules.
After the custodian opens the depository account with TDCC, the SITF, offshore overseas Chinese or foreign national, insurance enterprise, or mainland area investor shall open a customer depository account with the custodian.
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Article 5 |
The depository account set up by the custodian with TDCC may be used only to carry out operations related to securities custody, withdrawal, and transfer.
After the custodian completes the account opening procedure, TDCC shall immediately set up a participant account book for the custodian, and relevant operations shall proceed in accordance with the TDCC Operating Rules.
TDCC will accept requests from the custodian for securities custody and book-entry for the SITF, offshore overseas Chinese or foreign national, insurance enterprise, or mainland area investor.
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Article 6 |
The custodian shall perform an "Account Opening - Creation of Basic Information File" transaction (transaction code: 140) to open a customer depository account for the SITF, offshore overseas Chinese or foreign national, insurance enterprise, or mainland area investor. The first 3 digits of the account number will be the custodian's participant code assigned by TDCC, the fourth digit be "0," the fifth to tenth, an account serial number assigned by the custodian, and the eleventh, an account number check digit. The account type will be "30." However, for an insurance enterprise that performs payment settlement through a financial institution designated by its securities firm (broker), the depository account type will be "90" and for such account no physical passbook will be issued ("paperless account").
When the custodian engages TDCC to distribute and transfer of stock dividends, it shall perform a "Depository Account Information Maintenance" transaction (transaction code: 338) to make a notation indicating that such account will be used for "Distribution Book-Entry Transfer."
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Article 7 |
After the account opening procedure with the custodian for the SITF, offshore overseas Chinese or foreign national, insurance enterprise, or mainland area investor, the securities firm (broker) shall perform a "Custodian Transaction Relationship Registration" transaction (transaction code: 156) to open a customer depository account with the securities firm. For the customer depository account, the account number will be assigned by the securities firm, with the addition of the custodian account number. The account type will be "31." However, for an insurance enterprise that performs payment settlement through a financial institution designated by its securities firm, the account type will be "91" and such account will be a paperless account.
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Article 8 |
The depository account of the SITF, offshore overseas Chinese or foreign national, insurance enterprise, or mainland area investor with the custodian may be used only to carry out operations related to securities custody, withdrawal, and transfer.
The custodian will only produce a "Custodian Depository Account Trading Itemized Report" for account reconciliation and trade matching and will not issue a passbook.
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Article 8-1 |
A custodian conducting business involving an offshore overseas Chinese or foreign national providing domestic securities as collateral for offshore investment activities ("collateral custodian") shall submit the TWSE approval documents and apply to TDCC for account opening and perform an "Account Opening - Creation of Basic Information File" transaction (transaction code: 140) to open a segregated collateral custody account under its depository account. The account name will be "○○○ Bank / ○○○ Securities Firm Collateral Custody Account for Overseas Investment Activities of Foreign Investor Customer" (account no. 3XX0-9999911; the "collateral custody account"). The account type will be "93" and no physical passbook will be issued for the account.
The collateral custody account under the preceding paragraph may be used only to carry out operations for collateral custody, withdrawal, and transfer for disposal, of domestic securities provided as collateral for overseas investment activities by the offshore overseas Chinese or foreign national.
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Article 8-2 |
The collateral custodian shall apply to the securities firm head office to open a collateral disposal account. The securities firm head office shall perform an "Account Opening - Creation of Basic Information File" transaction (transaction code: 140). The account name will be "○○○ Bank / ○○○ Securities Firm Collateral Disposal Account for Overseas Investment Activities of Foreign Investor Customer" (account no. XXXX9498XXX; the "collateral disposal account"). The account type will be "94" and no physical passbook will be issued for the account. The account may be used only to carry out sale and settlement matters for the disposal of collateral securities.
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