Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Chapter 7　　Buyback

40.
Bidding in book-entry bond buybacks is restricted to bond dealers only; natural 
persons or other juristic persons shall submit bids through bond dealers under the 
bond dealers’ names.
Bidding in book-entry treasury bill buybacks is restricted to banks, Chunghwa Post 
Co.,Ltd., bills finance companies, securities firms, and insurance enterprises only
; natural persons or other juristic persons shall submit bids through bills houses
under the bills houses’ names.

41.
Successful bidders shall carry out the following matters prior to the sellback 
of book-entry CGS:
(1) Filling out and submitting the “Application for CGS Sellback Registration ” 
　　(Form 21) to correspondent clearing banks to effect registrations, specifying 
　　the aggregate par amount and amount receivable for securities sold back on 
　　their own accounts and on customers’ accounts, prior to the following 
　　deadlines:
i.  Book-entry bonds: prior to 3:30 p.m. on the next business day following the 
　　auction.
ii. Book-entry treasury bills: prior to 3:30 p.m. on the auction date.
(2) Delivering the securities sold on their own accounts and on customers’ 
　　accounts to correspondent clearing banks prior to the prescribed time on the 
　　buyback date.

42.
Clearing banks shall carry out the following matters prior to selling back book-
entry CGS:
(1) Transmitting messages in the “Book-Entry Central Government Securities 
　　Sellback Statement ” (Form 22) to the Bank, prior to the following 
　　deadlines:
i.  Book-entry bonds: prior to 12:00 p.m. on the second business day following the 
　　auction.
ii. Book-entry treasury bills: prior to 5:00 p.m. on the auction date.
(2) Transmitting delivery messages for securities sold back on their own accounts 
　　and on customers’ accounts, classified according to respective successful 
　　bidders, to the Bank to effect delivery prior to 3:00 p.m. on the buyback date.
　　The Bank shall debit a clearing bank’s securities account and credit the 
　　clearing bank’s reserve account for the amount specified in the delivery 
　　instructions accordingly. In the event that successful bidders fail to effect 
　　delivery, the clearing bank shall notify the Bank to make adjustments.
(3) Upon receiving the Bank’s confirmation of delivery messages on the buyback
　　date, crediting the net settlement amounts (after the deduction of withholding 
　　tax) to the customers’ funds accounts in accordance with the customer data 
　　listed in the “Application for CGS Sellback Registration” submitted by the 
　　successful bidders.

43.
Following the disbursement of buyback settlement amount by the Department of the 
Treasury, the original registrations of book-entry CGS shall be cleared in whole or 
in part.