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Title	Taipei Exchange Regulations Governing the Go Incubation Board for Startup and Acceleration Firms CH
Date	2025.01.09 ( Amended )

Article Content

Chapter 1 General Principles

Article 1	These Regulations are enacted for the purpose of counseling the innovative and creative non-public enterprises of the Republic of China (ROC) for development and assisting them in raising capital, in order to enhance the vitality and entrepreneurialism of the ROC's economy.
Article 2	Terms used in these Regulations are defined as follows: Competent authority: The Financial Supervisory Commission of the ROC. TPEx: Taipei Exchange. Company: Refers to a company limited by shares or a limited company organized in accordance with the Company Act of the ROC. The Go Incubation Board for Startup and Acceleration Firms (GISA board): Refers to the board established by the TPEx to assist innovative and creative enterprises with information disclosure and capital raising, and to provide investors with participation in subscription to company shares for cash capital increase. GISA company: A company limited by shares that is registered on the GISA pursuant to these Regulation. Recommending agency: The central competent authority for the target industry, a government at the level of municipality, county, or county-level city, the National Applied Research Laboratories, the Industrial Technology Research Institute, the Commerce Development Research Institute, the Institute for Information Industry, underwriters, CPA Associations, joint CPA firms, the Taiwan Venture Capital Association and its members, the Taiwan Private Equity Association and its members, or another agency that has submitted an application and been recognized by the TPEx.
Article 3	When a company or applies with the TPEx for a GISA registration, registration may only take place after the company has passed the TPEx's first-stage innovation and creativity assessment and received counseling from the TPEx-organized public integrative counseling mechanism, and after the company has passed the second-stage TPEx counseling effectiveness examination and met the conditions set out in Article 13, paragraph 1 and the conditions for GISA registration. Review procedures related to application for GISA registration by a company, and matters related to termination of counseling, suspension of qualification for capital raising through the GISA, termination of GISA registration, and any counseling or management by the TPEx related to the GISA shall be carried out in accordance with the provisions of relevant laws and regulations, these Regulations, and related directives and rules of the TPEx.

Chapter 2 Innovation and Creativity Assessment

Article 4	Where a securities broker accepts an order to sell registered securities that have never been transferred and its principal is not the owner of the securities, it shall handle the settlement in accordance with the Guidelines for Reporting by Securities Brokers of Sale of Securities Not Owned by the Principal as stipulated by the TWSE. The "owner" in the preceding sentence, unless otherwise provided, may not be an overseas Chinese or foreign national or mainland area investor. The provisions of the preceding paragraph shall apply mutatis mutandis where a securities broker accepts an order to sell registered securities that have been transferred and for which transfer registration procedures have been carried out with the issuing company, and that meets any of the following conditions: Securities of a defaulting investor after the case is closed and withdrawal has been effected. Securities acquired through an inheritance or gift. Securities acquired through underwriting before November 1997. Collateral in the form of spot securities that a securities finance company or securities firm operating its own margin purchase and short sale operations has required an investor to deposit to offset a decline in the securities price to below the maintenance ratio. Securities that a bank has required a customer to pledge in the form of spot securities. Securities obtained through a final and unappealable court judgment. Other conditions reported to and approved by the TWSE. When accepting a brokerage order to sell securities pursuant to this article, the securities broker shall confirm that the quantity of securities in the order does not exceed the quantity identified in the certifying document furnished by the principal.
Article 5	An applicant company that has an innovative or creative concept means one that meets any of the following requirements: It has obtained a "Company Innovation and Creativity Opinion Letter" (Attachment 3) from a recommending agency. It has obtained a recommendation letter issued by the central competent authority for the target industry specifying the reasons that the company possesses innovation and creativity. Its most recent annual financial report audited and attested by CPAs shows operating revenue of NT$50 million or more. It has obtained investment from the National Development Fund, Executive Yuan. It has obtained a research and development subsidy such as from the Small Business Innovation Research Program (SBIR Progam) or the Service Industry Innovation Research Program (SIIR Program) promoted by the Ministry of Economic Affairs. It is a science-based enterprise that has been approved for establishment in a science park under the Act for Establishment and Administration of Science Parks. The recommending agency shall assess items including the company's innovative or creative concept and its future development potential based on the "Innovation and Creativity Opinion Letter" formulated by the TPEx. A securities firm handling, or acting as an agent for, securities lending and borrowing business shall do so in compliance with the Regulations Governing Securities Lending by Securities Firms, Regulations Governing Securities Finance Enterprises, Operating Rules for Securities Lending by Securities Firms, or Operating Rules for Securities Finance Enterprises Offering Refinancing to Securities Firms.
Article 6	A securities broker shall keep complete and true records and vouchers when receiving or delivering securities or payments in connection with brokerage trading. The vouchers referred to in the preceding paragraph shall include receipts for funds and securities collected in advance, vouchers on securities delivered, and trade reports. The format thereof and the particulars to be entered therein shall conform to the regulations prescribed by the Competent Authority. Where a financial institution concurrently engages in the business of a securities broker and has opened specific accounts for depositing funds which can be verified, it need not use trade reports. A securities broker shall handle the receipt of securities or funds from its principals or delivery of securities or funds to its principals referred to in paragraph 1 of this Article by book-entry through the central securities depository accounts opened by its principals or through the deposit accounts opened by its principals with financial institutions designated by the securities broker, except under any of the following circumstances: Where a securities investment trust fund, venture capital enterprises invested by the National Development Fund of the Executive Yuan, insurance enterprise, offshore overseas Chinese or foreign national, or an overseas Chinese or foreign national or mainland area investor who has converted overseas corporate bonds held by him into stock or has converted overseas depositary receipts held by him into the underlying securities, has a deposit account opened by the custodian institution on behalf thereof, the receipt and payment of the purchase prices may be effected by account transfer (or remittance) through such account. Fund collection or payment operations of centralized segregated trust asset accounts under the management of a trust enterprise that has the status of a central depository participant may be carried out by means of transfer (remittance). Where a depositary institution of overseas depositary receipts has been engaged by its principal to redeem the overseas depositary receipts and sell the stock, it may receive the proceeds thereof by way of account transfer (or remittance) through the deposit account maintained at the custodian institution. Where a principal places engages a securities investment consulting enterprise or a SITE to conduct discretionary securities trading, the principal may open and maintain a deposit account at the custodian institution, and the receipt and payment of the purchase prices may be effected by account transfer (or remittance) through such account. When processing trade settlement, it is prohibited to transfer payment funds or securities between separate discretionary investment accounts of the same principal. If a domestic bank or insurance company obtains a rating of twA- or higher from the Taiwan Ratings Corporation, or its rating by a credit rating institution approved or recognized by the Competent Authority meets or exceeds the qualification requirements of the Taiwan Ratings Corporation's twA- rating, its receipt and payment of purchase prices may be effected by account transfer (or remittance) during the period for which the aforementioned rating is valid. If government agencies conduct securities trading settlement through deposit accounts of such institutions in accordance with laws and regulations, the receipt and payment of the purchase prices may be effected by account transfer (or remittance) through such accounts. If a principal agrees to keep settlement money in dedicated accounts for settlement with a securities firm, an arrangement may be made with the securities firm to have the receipt and payment of the purchase prices be effected by account transfer (or remittance) through the principal's own deposit accounts.
Article 7	(Deleted)

Chapter 3 The Public Integrative Counseling Mechanism

Article 8	When the applicant company receives a letter of approval issued by the TPEx pursuant to Article 4, it shall enter into a "Contract for Acceptance of Counseling and GISA Registration" (Attachment 5) with the TPEx, and begin to receive counseling from the TPEx. The applicant company may not use the fact of counseling by the TPEx in any promotion of its business, as an indication of its operational performance, as a guarantee of profit or for publicity.
Article 9	The public integrative counseling mechanism is under the coordination of the TPEx. It provides advisory counseling on accounting, internal control, marketing, and legal affairs based on what are deemed the actual needs of the recipient company and in combination with assistance from agencies such as the Small and Medium Enterprise and Startup Administration of the Ministry of Economic Affairs or accounting firms. To create the benefits of inter-agency coordination and enhance the effectiveness of counseling, the recommending agency shall provide its available resources to the TPEx for integration with the resources of the relevant external professional agencies in the process of providing counseling to the given company. The TPEx will at appropriate times provide a concise internal control system template and accounting system for reference by the company receiving counseling, to serve as a base on which it can establish and continue to implement those systems.
Article 84	A securities broker shall not accept any discretionary order to decide the type, volume, price or purchase or sale of securities on behalf of its principal. A securities broker shall not purchase or resell for its own profit any securities it has accepted an order to trade, or guarantee to share profits with its principals, or accept trading orders by installment payments. When recommending its principals or on website to buy or sell securities, a securities broker shall comply with the "Regulations Governing Securities Brokers' Practice on Recommending Principals to Buy and Sell Securities" as stipulated by the TWSE. The website provided by securities brokers shall show, in a conspicuous manner, the risk disclosure statement and the alternative to be adopted in case of inability to execute electronic transmission, and the most up-to-date information shall be transmitted. The securities brokers shall carefully select hyperlink websites, and shall be responsible for the supervision and administration of their associates' use of electronic mail, group electronic mail, bulletin board system, website, etc. in activities associated with business operations.
Article 11	A securities broker shall keep all matters in which it is engaged by the principal in confidence and shall not disclose them to others; provided that the above shall not be applicable if the TWSE makes enquiries of the securities broker.
Article 12	A securities broker that has made a mistake when executing a trade shall report the out-trade and/or correct the account number in accordance with the TWSE Directions for the Handling of Out-Trades and Correction of Account Numbers by Securities Brokers. A securities broker shall open a segregated error account in its own name, and shall assign it with an account number and fill its company profit seeking enterprise uniform invoice number therein, and said segregated error account shall be treated in the same manner as the account of its principals. All trades transacted through the said segregated error account shall be deemed as ordinary trades, for which securities transaction tax shall be paid. Gains and losses resulted from the said segregated error account shall be handled in accordance with the Principles Governing the Preparation of Financial Reports by Securities Firms.

Article 89	When a TPEx assessment determines that a company receiving advisory counseling meets each of the conditions listed below and is free of any of the disqualifying criteria set out in Article 13-1, paragraph 2, the company shall begin carrying out the procedures for GISA registration: It is a company limited by shares incorporated and registered in accordance with the Company Act of the ROC. It has established a sound internal control system and accounting system, which are being effectively implemented, and its accounting treatment complies with the Business Accounting Act. Its most recent annual financial report has been audited and attested by CPAs. If a company receiving counseling carries out a pre-GISA registration cash capital increase, its cash capital increase plan shall be reasonable and feasible. A securities broker may not violate brokerage contract when conducting brokerage trading. In the event that a securities broker breaches the brokerage contract, the principal may report the matter to the TWSE. Any claim by the principal against the clearing and settlement fund deposited with the TWSE by a securities broker that arises out of breach of contract by the securities broker in brokered market trades shall have the second highest priority after that of the TWSE. The principal may request the TWSE for payment from the clearing and settlement fund deposited with the TWSE by its contracted securities broker only if it has obtained the consent of the securities broker or a final adjudication of execution or of an arbitral award.
Article 13-1	When a company receiving counseling registers on the GISA board, it shall comply with all of the following provisions: The TPEx will engage a professional shareholder services agency to handle the shareholder affairs of the company receiving counseling. The company receiving counseling shall enter into a shareholder services agency contract with the designated shareholder services agency in accordance with TPEx rules. The TPEx will consult with the Taiwan Stock Exchange to obtain a four-digit stock code for the company receiving counseling, to allow the company to carry out information reporting and related matters. If a company receiving counseling, when raising capital prior to GISA registration, or otherwise prior to GISA registration, experiences any of the following events under these Regulations, the TPEx may immediately suspend its qualification for capital raising through the GISA board or its GISA registration, and may terminate the counseling pursuant to Article 12 of these Regulations: An event under Article 23, paragraph 1, subparagraphs 1 to 7 or 12, and the event is material enough to affect its operation. An event under Article 23, paragraph 1, subparagraph 8, Article 26, paragraph 1, subparagraph 1, 2, 4, 5, 6, or 7, or Article 27, subparagraphs 3 to 7. Another cause for which the TPEx considers it necessary. If any of the events listed in the preceding paragraph exists when a company receiving counseling carries out a pre-GISA registration cash capital increase, the TPEx may discontinue that capital raising case even if it is in progress, whereupon the subscriptions of any investors who have expressed intent to subscribe will lose validity; if the payment of the stock has already been made by investors, the company receiving counseling shall refund the payment with the interest accrued on the account, and shall bear the processing fees for remittance. If a company receiving counseling has its qualification for capital raising through the GISA or its GISA registration suspended by the TPEx pursuant to paragraph 2, it shall report to the TPEx by letter an explanation of the irregular events under paragraph 2 and its concrete plan for corrections. Unless the TPEx disagrees with its explanation or plan and terminates the counseling, the company receiving counseling shall issue material information disclosures concerning the aforesaid explanation and plan, and the status of the subsequent corrections, pursuant, mutatis mutandis, to Article 23 of these Regulations. The TPEx, depending on the status of the subsequent corrections, may reinstate the company's qualification for capital raising through the GISA board or its GISA board registration, or terminate the counseling.
Article 14	When the company receiving counseling carries out a pre-GISA registration cash capital increase in accordance with applicable laws and regulations, apart from a certain percentage of shares that shall be made available for subscription by employees, the remainder shall be made available for subscription by the company’s shareholders in proportion to their shareholding percentages. If employees or shareholders do not fully subscribe the shares and waive their rights to the unsubscribed shares, the portion of shares for which the subscription rights have been waived shall be made available in full number through the GISA for subscription by investors or for subscription by institutional angels only. The term "institutional angel" in the preceding paragraph means an investor who meets any of the following conditions: A professional institutional investor, which means a domestic or foreign bank, insurance company, bills finance company, securities firm, fund management company, government investment institution, government fund, pension fund, mutual fund, unit trust, securities investment trust enterprise, securities investment consulting enterprise, trust enterprise, futures commission merchant, futures service enterprise, or other institution approved by the competent authority. A juristic person or fund that has shareholders equity exceeding NT$50 million according to its latest CPA-audited or reviewed financial report, and that has established a dedicated investment unit; however, the financial report of a juristic person outside of the Republic of China need not be CPA-audited or reviewed. A trust enterprise that has entered into a trust agreement with a settlor who meets the conditions set forth in the preceding two subparagraphs. A venture capital enterprise duly established in accordance with law. The provisions of the Financial Consumer Protection Act do not apply to institutional angels referred to in the preceding paragraph.
Article 15	When a company receiving counseling carries out a pre-GISA registration cash capital increase, the total amount of capital stock offered for subscription by investors through the GISA may not exceed NT$30 million. However, when a company receiving counseling has obtained a letter of recommendation or an "Innovation and Creativity Opinion Letter" from a recommending agency at the time of application for GISA registration, it will not be subject to the above NT$30 million restriction. When a company receiving counseling carries out a pre-GISA registration cash capital increase, within 5 days from the date on which it confirms the number of shares for which subscription rights were waived by employees or shareholders, it shall input its basic company information and information on the cash capital increase into the TPEx-designated information reporting website in the format required by the TPEx. Investors may begin to subscribe the shares only after review by the TPEx and disclosure through the GISA for no less than 5 business days. During the period when a company receiving counseling carries out a pre-GISA registration cash capital increase, it may neither provide explanations nor issue any forecasting information to the public regarding its business or finances. The company receiving counseling shall be solely responsible for any error, omission, or misrepresentation in the basic company information and information on the cash capital increase disclosed through the GISA. A securities broker accepting an order to trade securities shall immediately deliver to the principal the securities bought or the proceeds of the securities sold after it is transacted and settled and, in case it is not transacted, shall forthwith return to the principal the securities or funds received; provided that the securities broker may keep the settlement in funds in the settlement account of the securities firm subject to the consent of the customer, and shall comply with the TWSE Directions for the Creation of Customer Ledgers of Securities Firm Settlement Accounts. A securities broker delivering the securities or funds referred to in the preceding paragraph, unless otherwise provided, shall request the principal to sign and seal on relevant vouchers so as to complete the procedures. A power of attorney shall be required in the event that the principal appoints another person to sign and seal on its behalf.
Article 16	Before the principal settles the debt arising out of the brokerage trade, a securities broker may retain the property received from the principal and the sum payable to the principal in connection with the brokerage trade. A securities broker shall prepare and send to each of its principals a monthly reconciliation statement; provided that the above shall not apply to case where there has not been any trade in that particular month and the principal does not request in writing for the statement. The format and particulars to be specified in the statement referred to in the preceding paragraph shall be in accordance with the regulations prescribed by the Competent Authority.
Article 17	When a company receiving counseling carries out a pre-GISA registration cash capital increase, it shall offer through the GISA board for subscription by investors or for subscription by institutional angels only the full number of the shares for which subscription rights were waived by its employees and shareholders. If, in the first subscription, the shares are not fully subscribed, or are fully subscribed but subscribers fail to pay the subscription price by the deadline, the company shall set an appropriate period of time for a second subscription, unless the TPEx gives approval for the company not to hold a second subscription. If the company, with the approval of the TPEx as provided above, does not hold a second subscription, or if in the second subscription the shares are not fully subscribed, or are fully subscribed but subscribers fail to pay the subscription price by the deadline, the company shall without exception refund the subscription price to those who have already paid it, along with the interest accrued on the account, and shall itself bear the processing fees for the remittances. The TPEx will then proceed in accordance with the provisions of Chapter 3 with respect to the company. If the shares in the first or the second subscription have been fully subscribed, the TPEx shall confirm, following the order in which each subscription occurred or the will of the company, the list of subscribers as a basis for notification regarding payment matters, and shall also notify the professional shareholders agency to confirm related matters, including collection of the full amount of the subscription prices. If the professional shareholder services agency determines that subscription prices have not been collected in full, it shall notify the company to handle the matter in accordance with paragraph 1. If it determines that subscription prices have been collected in full, it shall notify the company to carry out matters such as information reporting, amendment of its company registration, and delivery of the physical share certificates if any are printed by the issuing company; if the issuing company does not print physical share certificates, it shall register its issued shares with a central securities depository in accordance with Article 161-2 of the Company Act. (deleted)
Article 18	A securities dealer shall not directly or indirectly accept orders from others to trade securities on the Exchange.

Article 97	(deleted)
Article 20	A securities dealer that trades securities for purposes of meeting hedging needs in connection with call (put) warrant issuance or financial derivatives trading, or acting as a liquidity provider for call (put) warrants or ETF beneficial certificates, or subscribing to or redeeming ETF beneficial certificates, shall separately establish a segregated account for the trading quotes. When the TWSE has concerns that a securities dealer's trading of securities may impact normal market circumstances, the TWSE may file with the Competent Authority to limit its trading volume or price for a portion of, or all, securities. (deleted) Chapter VIII Clearing And Settlement
Article 21	The trading of securities transacted on the Exchange shall be cleared and centrally settled by the Clearing Division. The TWSE shall appoint the central securities depository to handle the receipt and delivery of securities in connection with the central settlement of securities trading referred to in the preceding paragraph. The clearing and settlement of securities transacted by the branch offices of a securities firm shall be consolidated by the head office and handled in accordance with the preceding two paragraphs.
Article 22	A GISA company shall input the following information, in the format required by the TPEx, into the TPEx-designated information reporting website: Basic company information, including a company overview, basic information on the directors, supervisors, and management team shall be input within 5 days after the time when the company knows of any change in the above. Information on company insider shareholdings shall be input by the 15th of each month. The dates of regular and special shareholders meetings, and the period during which the amendment of entries of the shareholders register is suspended: Shall be input at least 5 business days prior to the period during which the amendment of entries of the shareholders register are suspended. A business report, annual financial statement, and the surplus earning distribution or loss off-setting proposals submitted for recognition by a regular shareholders meeting shall be input at least 10 days prior to the date on which the regular shareholders meeting is convened. The annual financial statements may include simply a condensed balance sheet and condensed statement of comprehensive income. Dividend distribution shall be input on the business day following the resolution by the board of directors or confirmation by the shareholders meeting. Shareholders meeting minutes shall be input within 20 days after the shareholders meeting. The date of record for the company's decision to distribute dividends, bonuses, or other benefits and the period during which changes to entries in the shareholder register are suspended shall be input at least 5 business days prior to the period during which changes to entries in the shareholder register information is suspended. Information on a cash capital increase: Information on a board of directors resolution for a cash capital increase through a new share issue shall be input within 5 days after the date of the resolution. Information on capital raising through the GISA: A company that uses the GISA board capital raising system to carry out a cash capital increase shall enter the information into the system within 5 business days from the date of confirmation of the waiver of subscription rights by employees and shareholders and of no subscription arrangement with specified persons. Points of the capital raising plan and its progress: Shall be input within 10 days after the date of full collection of the share prices for the capital raising. Any changes in related information shall be entered into the system within 5 days from the time of the change. Quarterly statement on utilization of capital raised: Shall be input within 20 days after the conclusion of each respective quarter. No misrepresentation, concealment, or information sufficient to mislead others may be contained within the information reported pursuant to any subparagraph of the preceding paragraph.
Article 23	If any of the following circumstances applies to a GISA company, it shall enter the related information into the TPEx designated information reporting website, in the format required by the TPEx, within 5 days from the date of occurrence of the event, with the exception that in the case of a GISA company whose GISA registration is terminated pursuant to Article 27 of these Regulations, it shall enter the information by the next business day following the TPEx's public announcement of the termination: It has had a negotiable instrument dishonored due to insufficient funds, been blacklisted by a financial institution, or has otherwise experienced a loss of creditworthiness. The company has experienced any major litigious or non-litigious matter, administrative disposition, administrative dispute, conservatory proceeding, or compulsory execution matter with a material effect on the finances or business of the company. The company makes a major cut in production or undergoes a full or partial work stoppage, leases company plant or important equipment to others, or creates a pledge on all or a major portion of its assets, with a material impact on company business. The occurrence of any circumstance under Article 185, paragraph 1 of the Company Act. Any change in chairman or general manager. The signing of a plan for business cooperation or an important contract, or any alteration, termination, or rescission of such a plan or contract, with a material effect on the finances or business of the company. A resolution by the board of directors for a capital increase through a new share issue or the record date of a capital increase, or a material change in the preceding. A resolution by the board of directors to file with the competent authority for registration of supplementary procedures for classification as a public company. A board of directors or shareholders meeting resolution to apply for termination of GISA registration. Explanation and concrete plan for corrections, and status of subsequent corrections, required to be disclosed for any irregular events pursuant to Article 13-1, paragraph 4 or or Article 26, paragraph 2 of these Regulations. Suspension of the company's qualification for capital raising through the GISA pursuant to Article 26 or Article 27 of these Regulations, or a material change in any of the preceding matters. Occurrence of a disaster, group protest, strike, environmental pollution event, or any other material event, with a material effect on the finances or business of the company. Any other circumstances with a material effect on shareholder equity. When any of the circumstances of the preceding paragraph apply to a GISA board company and it has not issued an announcement of material information, the TPEx may notify the GISA company by fax, telephone, or e-mail to enter related information into the TPEx-designated information reporting website within a specified deadline. No information reported pursuant to the subparagraphs of paragraph 1 may contain any descriptions of an exaggerated nature or that resemble advertising or promotional language, nor may they involve misrepresentation, concealment, or misleading statements. To ensure that information is accurate and publicly available to all, a GISA company may not privately disclose information prior to a public announcement of material information. If a GISA company has reported material information and there is a material change in the information due to subsequent developments, the company shall immediately update or provide supplementary information in accordance with the same provisions as the original report. If the balance of the securities on deposit in the custodial book-entry account of the securities firm representing the seller is insufficient for the performance of settlement obligations, the securities firm representing the seller may apply to borrow securities for settlement pursuant to the TWSE Securities Borrowing and Lending Rules, and shall by 11 a.m. pay the cash collateral required for securities borrowing. the securities firm representing the seller does not apply to borrow securities by 10 a.m. of the second business day following the trade date, and has not completed securities settlement, the TWSE shall by 11 a.m. borrow securities on its behalf. If the amount of securities borrowed is insufficient, the TWSE will fill out and forward a "Securities Delivery Voucher" to the central securities depository for the portion falling short for safekeeping on behalf of the securities firm representing the purchaser. The borrowing securities firm shall, by 10 a.m. of the following business day, deliver the securities in exchange for the return of the aforesaid "Securities Delivery Voucher" and the refund of the cash collateral required for securities borrowing. If the borrowing securities firm fails to deliver the cash collateral required for securities borrowing or to provide offsetting collateral by 11 a.m. of the borrowing date, the TWSE may tentatively retain a portion of the proceeds and/or securities equivalent in value to the settlement price payable for that settlement period. Lending auctions, negotiated lending, and reverse auction carried out to cover shortfalls experienced by securities finance enterprises in securities required for short sales shall be conducted in compliance with the TWSE Securities Lending and Borrowing Rules. The Securities Lending and Borrowing Rules will be separately adopted by the TWSE and submitted to the Competent Authority for approval and shall take effect after they are publicly announced.
Article 24	(deleted)
Article 25	If a securities firm or a securities finance enterprise fails to carry out settlement within the time frame specified in Article 104, paragraph 5, subparagraph 1 or 2, the TWSE shall impose a delay fine pursuant to Article 137. A securities firm that fails to pay cash collateral required for securities borrowing shall be deemed to have not completed the delivery obligation of the securities deliverable. If a securities firm or a securities finance enterprise fails to pay a price payable or to pay cash collateral required for securities borrowing (including any collateral shortfall the borrower is required to cover for renewal of securities borrowing) by the end of banking hours, it is a breach of settlement obligations.
Article 26	A securities broker may not refuse to perform its obligations for settlement on grounds of the following matters: Default by the principal. Delayed settlement by the principal. Failure by the authorized discretionary trader for a discretionary investment account to perform on time obligations arising from a trade exceeding the scope of the discretionary trader's authorization. A shortfall in refinancing for a margin purchase or short sale.
Article 27	Given any of the following circumstances with respect to a GISA board company, the TPEx may publicly announce the termination of its GISA board registration from the second business day following the date of announcement: The company files with the competent authority for effective registration of supplementary procedures for classification as a public company. The company's qualification for capital raising through the GISA pursuant to the preceding article has been suspended for over 3 months, and the cause of suspension is not limited to the cause under the same subparagraph. The company's corporate registration is voided by the competent authority, or the company is dissolved by the competent authority. The company files with a court for bankruptcy or reorganization. The company's application documents, information, or explanations contain misrepresentations or important items are omitted. The company commits a material violation of the Company Act, these Regulations , or the Contract for Acceptance of Counseling and GISA Registration. The GISA company applies for termination, or there are other circumstances under which the TPEx deems it necessary to terminate the company's GISA registration.
Article 27-1	(deleted)
Article 28	In the event of war, natural disasters or the occurrence of other events of force majeure that causes the TWSE or the central securities depository to be unable, or with obvious difficulties, to process the clearing and central settlement, the TWSE may first decide to suspend clearing and the central settlement and then formulate the method for handling such event, which shall be submitted to the Competent Authority for its approval and to take effect after its approval.
Article 29	(deleted)

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