Newsletter
DEREGULATION OF OTC SHARE CREDIT TRANSACTIONS
The Ministry of Finance recently announced draft regulations on credit transactions in shares of companies traded over the counter. The criteria for credit transactions include the following: the company must have been established for five full fiscal years; it must have paid-in capital of at least NT$300 million; and its pre-tax net profits and business profits must have equaled 6% or more of its paid-in capital in each of the two most recent years. The ceiling for margin loans rate is 30% and the ceiling for securities lending rate is 90%.