TWSE Press Release

Privately Raised Mutual Funds and Privately Raised Unit Trusts are Allowed to Participate in TSEC SBL System

Publish Date︰2007/03/26 17:53

To increase market participants and to enlarge the liquidity pool of Taiwan SBL market, the Financial Supervisory Commission (or the FSC) allows privately raised mutual funds and privately raised unit trusts to participate in the TSEC SBL System hereafter on March 21, 2007.

While the privately raised mutual funds or the privately raised unit trusts apply to the TSEC for opening SBL accounts, the related documents submitted at present and the statements that declare their being managed by corporate institutions are required. In addition, two ceilings set by the FSC are as follows:

1.The total short selling value of borrowed stocks of the privately raised mutual funds or the privately raised unit trusts cannot exceed 50% of their net assets in Taiwan; and

2.The lending volume of each single stock is no more than 50% of the total of that stock they held.

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