The Securities and Futures Commission yesterday confirmed it will remove a restriction on applications to purchase shares in state-run enterprises, which stipulates that investors must demonstrate they posses enough money to cover the cost of their share purchase.
Securities officials said the easing of the measure was aimed at offsetting the impact Chunghwa Telecom's (中華電信) share sale may have on the local bourse.
Under current regulations, investors wishing to buy shares in state-run companies must deposit an amount of money equivalent to the value of their desired purchase into a bank account, a Ministry of Finance official said.
Officials said that the size of the share sale, which is expected to soak up around NT$100 billion in cash, would make the job of verifying whether every would-be investor has the required amount of cash too time consuming.
Currently, applications for the 13 percent public subscription will be accepted Sept. 6 through Sept. 10.
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