Newsletter
DISCLOSURE ON DERIVATIVES TRANSACTIONS BY QFIIs AND GFIs
According to the Securities and Futures Commission (SFC), a qualified foreign institutional investor (QFII) or a general foreign investor (GFI), when applying for the SFC's approval for investment in the domestic securities (including re-application), should, in addition to the documents currently required under the Regulations Governing Securities Investment by Overseas Chinese and Foreign Investors, submit the detailed information regarding derivatives transactions covering shares of ROC public-issuing companies entered into by the QFII or GFI or any of its related parties, or the detailed information regarding the holding of such underlying shares by the QFII or GFI or any of its related parties for and on behalf of a party entering into such derivatives transactions. If no such derivatives transactions have been entered into by the QFII or GFI or any of its related parties, the QFII or the GFI should submit an affidavit to that effect and covenant that it will report to the SFC within five days after each entry into of such derivatives transactions or holding of the underlying shares regarding such derivatives transactions by the QFII, the GFI or any of its related parties.
The detailed information to be disclosed by the QFII or GFI includes: the name of the underlying shares and the type, the counterparty, the date of contract, the total number of the trading units, the maturity date and the strike price of the derivatives transactions, and the number of underlying shares represented by the instrument in the derivatives transactions and such other documents as may be required by the SFC.