The Financial Supervisory Commission (FSC) is drafting an amendment to a corporate fund-raising regulation as the government plans to further develop local capital markets.
The commission said it was planning to allow listed companies — raising funds through the issue of corporate bonds with warrants or preferred stock with warrants — to split the sale of the warrants and the securities.
In other words, once the amendment is approved by all parties, listed companies would be able to sell the warrants to one investor and the bonds or preferred stock to another.
Listed companies refers to firms whose shares trade on the Taiwan Stock Exchange, GRETAI Securities Market and Emerging Stocks Market.
Under current regulations, listed companies in Taiwan issuing corporate bonds with warrants or preferred stocks with warrants are restricted to selling the warrants and the securities to the same buyer.
The commission said the planned amendment is aimed at bringing Taiwan’s capital markets in line with international trends, keeping in mind securities regulations in other major markets and taking into consideration Taiwanese investors.
In addition, “[the move] will increase companies’ fundraising channels and investment targets for investors,” the statement said.
The commission said in the statement that it would take into account different opinions on the planned amendment and would formally make an announcement on its implementation at a later date.