Sat, Nov 13, 2004 - Page 10 News List

Underwriters to be held responsible for problem listings


The Financial Supervisory Com-mission will kick-start its newly-revised regulatory measures governing listed companies next year by holding underwriters responsible for future problematic listings.

A three-tier mechanism will also be implemented in 2006 to impose penalties on problematic underwriters, including sus-pending their business activities for up to six months, commission vice chairman Lu Daung-yen (呂東英) told a press conference on Thursday.

Underwriters will be required to inform investors of their pricing for new listings, while both underwriters and accountants will be held responsible for revealing possible risks involving the listings, Lu said.

To further regulate the issuance of global depository receipts (GDR) and European Convertible Bonds (ECB), the commission will demand that issuers submit a list of buyers who invested more than NT$20 million in shares for review and approval, said Jerry Huang (黃顯華), a commission member.

Huang said that the commission will in the next three months draw up a draft proposal to initiate a mechanism which would expel defaulting companies from the local bourses. The draft would encompass strict standards and practices to delist penny stocks that show a low transaction volume for a certain period of time.

The commission is determined to enforce measures to reform the local capital markets by proposing to hold investors' meetings on a regular basis to take note of their opinions, Lu said.

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