On the distribution date, customers can sell or settle a short sale. However, withdrawal is not allowed. Also, to prevent the use of newly distributed stocks for settlements of sale amount in one and two business days before, the stocks are listed under the "controlled securities from book-entry deposit" in the customer's balance on the distribution day and the following business day. The transfer shall be conducted by executing the "Controlled Securities - Deposited Securities Transfer" transaction (Code: A63). The customer's balance of the transferee shall still be listed under "controlled securities from book-entry deposit."

In accordance with the official letter Taiwan-Finance-Securities (IV) No. 04456 issued on December 1, 1999, starting from January 1, 2000, if the stock dividend yield of stocks acquired by investors via margin purchase exceeds 20%, the new stocks shall be collateral to securities firm handling margin purchases and short sales of securities. If the securities to be distributed are collateral with dividend yield exceeding 20%, they would be distributed to the securities owner's central depository account first by TDCC. TDCC will calculate the number of stock dividends to be used as collateral based on the dividend yield rate provided by the issuing company. The quantity calculated will be transferred from the securities owner's central depository account to credit institution's segregated account for margin purchases and short sales.

(1) The customers shall apply to the investment trust companies to transfer their open-end fund beneficial certificates used as collateral to the customers' central depository accounts with securities firms/securities finance companies by executing the "Issuer Depository Book-Entry Account/Registration Account - Deposited Securities Account Transfer Application" transaction (Code: 671). (2) The customers shall then apply to the securities firms/securities finance companies to transfer their open-end fund beneficial certificates from the central depository accounts to the money lending/settlement financing collateral account.

TDCC transfers the securities immediately when notified by the Taiwan Stock Exchange.

According to the notice issued by the Taiwan Stock Exchange, the borrowing balance shall be applied before debiting the general balance.

1. Starting from the termination date, the centralized securities depository enterprise will suspend all book-entry delivery functions for the securities other than the extinguishment of pledge (transaction code 320), court-ordered attachment information setup (transaction code 150), court-ordered attachment information amendment (transaction code 151), and closing out of margin purchases and short sales.
2. Once the issuer delivers paper securities to the centralized securities depository enterprise, except for the newly-added withdrawal function, all other book-entry functions are still subject to the aforementioned restrictions.