萬國法律事務所

Taiwan Depositary Receipts (TDRs) have had an active market and have attracted the attention of many investors. Taiwan’s Financial Supervisory Commission under the Executive Yuan has therefore planned to relax the regulations on TDR issuance. Specifically, issuers will be allowed to apply for approval of the TDRs they expect to issue in the following years without going through the application process each time of issuance. It is hoped that this new policy will facilitate TDR issuance and stimulate activity in the TDR market. Some observers caution that the new policy must, however, be implemented together with other supporting systems, such as a careful assessment of the feasibility of issuers’ financing plans.

To enable TDR investors to be fully informed of the relevant information, the Taiwan Stock Exchange has developed a specific area for TDR in the Market Observation Post System, where investors can easily obtain information concerning the foreign stocks underlying a specific TDR without having to refer to those foreign stock exchange websites. In addition to the sponsored TDRs currently in the market, the Taiwan Stock Exchange also plans to allow the issuance of unsponsored TDRs. It is expected that with a sound system for TDR transactions, the price of TDRs will become stable and reasonable.