TWSE Market Insights

＜中文版＞

With the rapid global advancement of FinTech, the regulatory effectiveness of capital markets no longer depends solely on the stringency of regulations, but rather on the immediacy of information transmission. The Financial Supervisory Commission (FSC) has long been committed to driving the digital transformation of the securities market, aiming to reduce corporate costs and strengthen market transparency through technology.

Currently, the reporting process for listed and OTC companies to repurchase their own shares (Treasury stocks) still faces limitations due to physical paperwork. Under existing regulations, once a company decides to repurchase its own shares, it must post an announcement on the Market Observation Post System (MOPS) and complete a paper-based filing with the FSC before it can commence the buyback. This dual-track process of "electronic announcement and paper-based filing" not only increases labor and mailing costs but also creates a time lag that may affect the company's ability to execute buyback plans in a timely manner.

In response to digital trends and to enhance filing efficiency, the FSC issued amendments to Articles 2, 6, and 13 of the "Regulations Governing Share Repurchase by Listed and OTC Companies" on January 22, 2026. These amendments shift the filing method from paper-based to electronic. To allow companies sufficient time to prepare, the new regulations will officially take effect on May 1, 2026. This initiative aligns with the "Green Energy and Carbon Reduction" vision of ESG sustainability policies, further integrating Taiwan's capital market with international paperless trends.

The core of this regulatory update covers three major areas:

1. Electronic Filing: To promote sustainability and efficiency, all filings and announcements related to treasury stocks will now be conducted through MOPS. Once the required documents are uploaded and the announcement details are entered, the filing and announcement obligations are considered fulfilled.
2. Extension of Reporting Period for Share Repurchases to Five Years: To enhance information disclosure and align with the amendment of Article 28-2, Paragraph 4 of the Securities and Exchange Act, the reporting period for share repurchases has been extended from three years to five years.
3. Implementation Buffer Period: Acknowledging the impact of regulations change on internal corporate workflows, the regulations specify that the amended articles will take effect on May 1, 2026. This buffer period ensures a smooth transition between the old and new regulations while minimizing impact on market operations.

Starting from May 1, 2026, when a company decides to repurchase its own shares, personnel only need to log into the SII system, enter the required data via the interface, and upload documents in PDF format. This will be legally recognized as the completion of all filing and announcement obligations.

The FSC stated that shifting to electronic filing will allow companies to enter the market more swiftly to repurchase their own shares. This initiative will assist companies in rapidly completing repurchase filings and announcements during periods of intense market volatility, thereby protecting shareholder interests and maintaining orderly market trading.

In summary, the amendment of the "Regulations Governing Share Repurchase by Listed and OTC Companies" represents not just a simplification of administrative procedures, but a comprehensive upgrade of Taiwan’s securities regulatory framework. Effective May 1, 2026, the filing process for share repurchase will officially transition to a fully electronic system. Listed and OTC companies will benefit from reduced administrative burdens, allowing resources to be allocated more effectively toward core operations and long-term strategic planning.

Currently, TWSE and TPEx (Taipei Exchange) have initiated a series of promotional sessions to assist listed and OTC companies in familiarizing themselves with the new system. Through the cooperation of the government and companies, we look forward to creating a more efficient, eco-friendly, and transparent capital market that aligns with international paperless trends and realizes the vision of sustainable development.