Order on Overseas Chinese and Foreigners Borrowing Securities from Securities Dealers and Securities Finance Companies

1. Overseas Chinese and foreigners may borrow securities from securities dealers and securities finance companies, and are not subject to the restrictions in Article 21, Paragraph 2, Item 2 (prohibition on selling securities not yet held) and Item 3 (prohibition on providing collateral) of the Regulations Governing Overseas Chinese and Foreigners Investment in Securities. Overseas Chinese and foreigners borrowing securities other than central government bonds registered with the Central Registration and Depository from securities dealers, and borrowing securities from securities finance companies, must have entered into an entrustment trading contract with the securities dealer for a period exceeding three months before doing so.

2. Overseas Chinese and foreigners borrowing securities from securities dealers or securities finance companies shall comply with relevant regulations such as the Regulations Governing Securities Dealers' Handling of Securities Lending and Borrowing and the Rules Governing Securities Finance Companies. The custodian shall record such transactions in detail in accordance with Article 22 of the Regulations Governing Overseas Chinese and Foreigners Investment in Securities, and report to this Commission and the Foreign Exchange Bureau of the Central Bank within ten days after the end of each month.

3. Applications for foreign exchange settlement of proceeds from selling securities borrowed by overseas Chinese and foreigners shall be treated as the repatriation of investment principal. The amount of New Taiwan dollars applied for repatriation of investment principal shall not exceed the balance remaining after converting the net amount of imported investment principal into New Taiwan dollars.

4. This order takes effect from the date of issue; the Order of the Financial Supervisory Commission dated August 18, 2006 (Jin Guan Zheng Ba Zi No. 0950003928) and the Order dated June 15, 2007 (Jin Guan Zheng Ba Zi No. 0960027033) are hereby repealed effective immediately.

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Last Updated: 2026-09-16

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Last Updated: 2026-09-16

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