Ownership and Governance (Main Shareholders)

As of March 27, 2006, TDCC had paid-in capital in the amount of NT$2,768,924,640; Taiwan Stock Exchange Corporation (TSEC) owns 50.43% of TSCD shares; Fuh-Hwa Securities Finance Company owns 13.96%; over 100 securities firms and financial institutions owns the remaining 35.61%. Shareholders' meeting is the highest decision making body of TDCC.

The member of the board includes seven directors and three supervisors elected at the shareholders' meeting and the chairman is elected among directors. All directors and supervisors have a term of three years and may be re-elected. Under the official shareholders' board, a president is appointed by the chairman, subject to the consent of the board and executes the resolutions of the board and oversees company business as directed by the chairman.

TDCC also set up separate business groups undertaking back-office operations for different product markets. Equities Business Group includes 5 departments: operations, depository, shareholders' affairs, system development, and computer operation. Whereas 3 departments of FI operations, FI information planning, and FI information service are included in Fixed-Income Business Group. Departments of planning, administration, labor safety, auditing, legal, finance, and internal auditing are mainly in charge of administrative supports.

Brief History

As the merger of two organizations (TSCD & DIDC) on March 27, 2006, it is now recognized as the Taiwan Depository & Clearing Corporation (TDCC).

In Oct. 1989, The Ministry of Economic Affairs had approved the establishment of Taiwan Securities Central Depository Co., Ltd. (TSCD). SFC enacted the Rules Governing the Book-entry Operation of Securities in Centralized Custody in Dec. 1989 and permitted the Rules of Business Operation by TSCD in officially proceeding the process on Jan. 4, 1990. As operation continues, TSCD took over the business custody from Fuh-Hwa Securities Finance Company as well as the settlement operations commissioned by Taiwan Stock Exchange Corporation and by embarked its computer linkage with securities firms by end of Aug. 1990. In coordination with the enforcement of the book-entry system within the centralized trading market, TSCD modified its procedures and computer system in order to ensure all transactions and settlement could be done in a safe and convenient methods.

In order to promote dematerialization and central clearing-settlement system for short-term bills, DIDC (Debt Instruments Depository and Clearing Co., Ltd. Taiwan) had processed with all preparation since April 2004, and had introduced a Delivery Versus Payment (DVP) mechanism by linking the Inter-bank Fund Transfer System of the Central Bank of China during the same period. The DIDC System was set to improve the efficiency and security of bills back-office operation and furthermore to develop a safe and sound money market.

Based on the advantages of such consolidation, TDCC will continue to extend business scopes, to provide better but lower-cost services, to protect investors' rights and to reduce the risks for securities firms and bill dealers, with the aim of making Taiwan's stock market significantly efficient.

Types and number of Participants

• Brokers: 131
• Custodian Banks: 40
• Others: 39
• Issuing Companies: 1037
• Bill Dealers: 61
• Clearing & Settlement Banks: 16

Regulatory Environment

TDCC is established and regulated mainly under:
1. The Company Law
2. The Securities and Exchange Act
3. The Regulations Governing Securities Centralized Depository Enterprises
4. The Regulations Governing Book-Entry Operations for Centrally Deposited Securities
5. The Act Governing Bills Finance Business
6. The Admission and Management Laws of Bills, Clearing and Settlement Organization
7. Bills Book-entry Clearing and Settlement operation rules

Stock Exchanges

• Taiwan Stock Exchange
• GreTai Securities Market

Other CSDs or clearing organization in your country

No

Services Provided

• Custody of securities and short-term bills
• Registration of uncertificated securities
• Book-entry operation for Securities and short-term bills
• Clearing and settlement of emerging stocks and short-term bills
• Information exchange and payment processing of offshore fund transactions

Eligible Securities

• Stocks
• Bonds
• Beneficiary Certificates
• Securitized Instruments

Corporate Action services Provided? Yes/No (If yes, what kinds of services provided?)

Yes. Providing shareholders??lists to issuing companies.
Cash dividend inquiry system.

Value of Securities in Custody (US$):US$503.91 billion

Amount of Cash Settled per annum (US$):NA

Percentage of Securities Immobilized/ Dematerialized:17%

Market Capitalization/ Trading volume per annum (US$):US$492,616.77 million

Total Revenue/ Expense and Net income Per annum (US$):NA

Memorandum of Understanding/ Business Agreement (Date)

• KSD(March,2000)
• DTCC(August, 2003)
• JASDEC(Nov., 2004)
• JSSC(Nov., 2004)
• CBLC(Dec., 2005)
• CDP(Dec., 2006)
• NSDL(Jan., 2007)
• TSD(April, 2007)
• MSCH&CD(April, 2007)
• DBAG(May, 2007)
• JSCC(June, 2007)
• CDSL(India)(Febuary, 2008)
• VSD(May, 2008)

Cross-Broader Transaction (Counterpart)

International bonds

Withholding Tax Treatment of Cross-Border Trading Transactions (Details)

NA

DVP Implementation (Yes/No)

Yes. Fixed Income Instruments

Settlement Period

Depends on products

Contact Information

Contact Person: Howard Wang

Tel: 886-2-2514-1487
Email: howardwang@tdcc.com.tw
Fax: 886-2-2713-3736

Remarks