The FSC Reminds TWSE and TPEx-Listed Companies to Timely Assess and Implement Treasury Stock Buybacks Based on The Cash Flow Arrangement and Relaxes the Scope of Collaterals to cover the Margin Deficiency
2022-07-14
The stock market volatility has increased in 2022 due to international political and economic uncertainties, such as the Ukraine-Russia war, high inflation and rising interest rate. The Taiwan stock market has dropped 21.37% this year (as of July 13).
According to statistics, the first-half 2022 revenue of TWSE and TPEx-listed companies amounted to NT$20.61 trillion, an increase of 11.04% over the same period of last year, while the revenue in June 2022 was NT$3.74 trillion. Both June and first-half revenue reached a new record high. The operating performance of TWSE and TPEx-listed companies is still stable with the high dividend yield. It is suggested that investors pay more attention to the stock fundamentals.
According to the statistics from January 1 to July 13, 2022, the number of treasury stock cases executed by TWSE and TPEx-listed companies totaled 61, of which 21 are still under execution (16 TWSE-listed and 5 TPEx-listed), and the maximum buyback amount is about NT$9.9 billion. The FSC reminds TWSE and TPEx-listed companies to timely assess and implement treasury stock buybacks based on their cash flow arrangement, financial status and buyback purpose and in accordance with the provisions of the Securities and Exchange Act to protect shareholders' rights and enhance investors' confidence.
In addition, in order to maintain the order and stability of the securities market and protect the rights and interests of investors, the FSC announced today that it will "relax the scope of collaterals to cover the Margin Deficiency." Beginning from July 15 2022, with the creditors consent, investors are allowed to meet the margin call (for either a margin purchase or a short sale) by posting any collaterals that have market liquidity and can be objectively and reasonably valued. The FSC calls on securities firms and other creditors to reasonably assess investors’ status of margin purchase and short sale activities, and appropriately handle the situation in a proper and legally compliant manner.
The FSC has continued to focus on to the impact of the international situation on the macroeconomic and the Taiwan stock market. The FSC indicates that the TWSE and the TPEx has continued to closely watch the global economic effects on the financial status of TWSE and TPEx-listed companies and their timely disclosure of relevant information. The FSC states that the relevant stabilization measures would be taken when necessary.
Contact unit: Securities Trading Division, Securities and Futures Bureau, Financial Supervisory Commission
Tel: 2774-7431
For any questions, please write to: FSCmail
According to statistics, the first-half 2022 revenue of TWSE and TPEx-listed companies amounted to NT$20.61 trillion, an increase of 11.04% over the same period of last year, while the revenue in June 2022 was NT$3.74 trillion. Both June and first-half revenue reached a new record high. The operating performance of TWSE and TPEx-listed companies is still stable with the high dividend yield. It is suggested that investors pay more attention to the stock fundamentals.
According to the statistics from January 1 to July 13, 2022, the number of treasury stock cases executed by TWSE and TPEx-listed companies totaled 61, of which 21 are still under execution (16 TWSE-listed and 5 TPEx-listed), and the maximum buyback amount is about NT$9.9 billion. The FSC reminds TWSE and TPEx-listed companies to timely assess and implement treasury stock buybacks based on their cash flow arrangement, financial status and buyback purpose and in accordance with the provisions of the Securities and Exchange Act to protect shareholders' rights and enhance investors' confidence.
In addition, in order to maintain the order and stability of the securities market and protect the rights and interests of investors, the FSC announced today that it will "relax the scope of collaterals to cover the Margin Deficiency." Beginning from July 15 2022, with the creditors consent, investors are allowed to meet the margin call (for either a margin purchase or a short sale) by posting any collaterals that have market liquidity and can be objectively and reasonably valued. The FSC calls on securities firms and other creditors to reasonably assess investors’ status of margin purchase and short sale activities, and appropriately handle the situation in a proper and legally compliant manner.
The FSC has continued to focus on to the impact of the international situation on the macroeconomic and the Taiwan stock market. The FSC indicates that the TWSE and the TPEx has continued to closely watch the global economic effects on the financial status of TWSE and TPEx-listed companies and their timely disclosure of relevant information. The FSC states that the relevant stabilization measures would be taken when necessary.
Contact unit: Securities Trading Division, Securities and Futures Bureau, Financial Supervisory Commission
Tel: 2774-7431
For any questions, please write to: FSCmail
Visitor：
254
Update：
2022-09-02