Custody


1.Securities eligible for custody service

To improve security market efficiency and to reduce the burden for physical securities manual operation with security industry, TDCC has been vigorously expending eligible securities under custody since established in 1989. TDCC provides book-entry transfer service to the following securities under custody:

  1. Stocks, new share certificates, subscription payment certificates, preferred stocks with warrant and warrants traded on the centralized market.
  2. Beneficiary certificates traded on the centralized market.
  3. Depositary receipts traded on the centralized market.
  4. Convertible corporate bonds, exchangeable corporate bonds, corporate bonds with warrant, corporate bonds and bond conversion certificates traded on the centralized market.
  5. Bonds traded on the centralized market.
  6. Call (put) warrants traded on the centralized market.
  7. Beneficiary certificates and asset-backed securities traded on the centralized market.
  8. Stocks, new share certificates, subscription payment certificates, preferred stocks with warrant, and warrants traded over-the-counter.
  9. Beneficiary certificates traded over-the-counter.
  10. Depository receipts traded over-the-counter.
  11. Convertible corporate bonds, exchangeable corporate bonds, corporate bonds with warrant, corporate bonds, bank debentures, and bond conversion certificate traded over-the-counter.
  12. Bonds traded over-the-counter.
  13. Call (put) warrants traded over-the-counter.
  14. Beneficiary certificates and asset-backed securities traded over-the-counter.
  15. Employee stock option certificates.
  16. Stocks issued by public companies that are printed in consolidated form representing the total number of the new shares in one issue or issued in dematerialized form.
  17. Privately placed stocks, subscription payment certificates, bond conversion certificates, corporate bonds, and bank debentures issued by public company that are printed in consolidated form representing the total number in one issue or issued in dematerialized form.
  18. Privately placed preferred stocks with warrant, corporate bonds with warrant, convertible corporate bonds, and exchangeable corporate bonds issued in dematerialized form by public company.
  19. Open-end beneficiary certificates and bank debentures issued in dematerialized form.
  20. Privately placed beneficiary certificates or asset-backed securities issued in dematerialized form by trust institution or special-purpose company.
  21. Negotiable certificates of deposit, NCD.
  22. RMB-denominated corporate bonds issued overseas by public companies where investors are offshore banking units of banks and the bonds are issued in dematerialized form.
  23. Commercial paper I, CPI.
  24. Commercial paper II, CPII.
  25. USD-denominated commercial paper.
  26. Bank acceptance.
  27. Short-term beneficiary securities and asset-backed securities
  28. Municipal notes.
  29. Other securities or short-term debt certificates approved by the competent authorities.

2. Custody and safekeeping of securities

Securities under TDCC's custody are divided into Fungible Custody and Separate Custody.

(1) Fungible Custody

Investors, participants and TDCC agree that the securities deposited with TDCC under fungible basis will be returned with the same type and the same quantity of securities upon withdrawal.

(2) Separate custody

When registered stocks are deposited under separate custody, TDCC sets up separate deposit accounts for each customer and issue a deposit certificate. If an investor applies to withdraw securities, TDCC will return the originally deposited registered securities. Securities under separate custody are limited to the restricted registered shares held by the directors, supervisors, or specific shareholders of issuers that are required to be deposited with TDCC.

To reduce the operating costs for deposit and withdrawal of physical securities under separate custody and to keep abreast of the trends in dematerialization of securities, TDCC offers the service of managed fungible custody to the directors, supervisors and specific shareholders of issuers and the holders of beneficial securities for depositing the restricted securities with TDCC and placing such securities under central deposit via book-entry transfer.

3. Custody and safekeeping of short-term bills

For the convenience of bill dealers, TDCC has appointed Taiwan Cooperative Bank as the depository bank for physical NTD short-term bills and Mega International Commercial Bank as the depository bank for physical foreign currency short-term bills. Bill dealers may deposit the physical NTD/foreign currency bills at any branch of the NTD/foreign currency depository bank, which the bank is responsible for the safekeeping, the presentment and redemption upon maturity, as well as the issuances and underwriting in the primary market.