Securities that can be deposited with a CSDE shall be limited to those actually owned by a participant or its customers.
Stocks whose owners are entitled to defer the payment of tax as provided for in Articles 16 and 17 of the Statute for Upgrading Industries in force prior to the 31 December 1999 amendment, or in Article 13 of the Statute for Encouragement of Investment in force prior to the end of 1990, shall be calculated in the annual income of a CSDE for assessment of income tax.
In order to verify whether a customer has actual ownership of the securities, a participant shall request the customer to submit a purchase-sale confirmation slip or other supporting documents.
Where a customer is appointed, pursuant to applicable laws or regulations, to sell securities that he or she does not own, the relevant participant shall, after the said securities transaction is made, verify the documentation of ownership and power of attorney submitted by the owner. The limitations set forth in the preceding three paragraphs shall not apply.

Securities deposited with a CSDE by a participant shall be endorsed in blank by the owner, with an "Application Form for Ownership Transfer Registration" attached.

A participant, upon receiving a customer's delivery of securities for custody, shall record immediately such information including types and quantities of securities and other necessary matters on the customer's passbook and account books, and shall prepare and deliver to the customer a list of the serial numbers of relevant security certificates.
The securities referred to in the preceding paragraph shall be deposited with a CSDE on the date of delivery by the customer. Securities to be deposited by a participant located outside Taipei City or New Taipei City may, however, be deferred until the next business date.

In depositing the securities with a CSDE, a participant shall prepare a list specifying the serial numbers of the relevant security certificates and the total quantity of securities, and deliver the same to the CSDE within the business hours set by the CSDE.
The list as referred to in the preceding paragraph shall be prepared separately identifying the portions owned by the participant and the customer respectively.

A CSDE, upon accepting securities deposited by a participant, shall record immediately necessary information on the participant's account books.
Where a CSDE believes that securities delivered by a participant are either defective in rights, or subject to legal dispute or any other dispute regarding validity of such securities, the CSDE may refuse to accept such securities. If such defects are discovered after the securities are deposited, the CSDE may either return such securities to the participant or notify the said participant to replace them with non-defective securities.

The securities deposited with a CSDE shall be held in fungible custody without distinguishing the ownership of participants or of customers, and it is only necessary upon their withdrawal that the securities being returned are of the same type and quantity.
Ownership shares of the securities deposited in aggregate with a CSDE as referred to in the preceding paragraph shall be calculated separately according to the quantity of securities deposited by each participant or its customer(s).

A customer, upon withdrawing securities deposited with a CSDE, shall present to the participant the passbook and a withdrawal slip which has been properly affixed with a specimen of the chop or signature originally used.
A participant shall, upon receiving a customer's request for withdrawal as referred to in the preceding paragraph, notify the CSDE by keying into the computer information regarding the types and quantities of securities to be withdrawn, and shall submit an application for withdrawal to the CSDE on the same date; the CSDE shall, upon receipt of the application, make necessary record entries on the participant's account books on the following business day.

In applying to withdraw securities from a CSDE, a participant shall prepare separate withdrawal slips for securities owned by the participant and customer respectively, and record thereon such information including types and quantities of securities and other necessary matters, and deliver them to the CSDE during the time period specified by the CSDE.

A CSDE shall, upon receiving the withdrawal slips as referred to in the preceding article, on the same day return to the participant the requested securities accompanied with a list specifying the serial numbers of the securities.

A participant, upon receiving from a CSDE those securities owned by a customer, shall return immediately to the customer the same securities accompanied with a list specifying the serial numbers of the said securities, and make necessary record entries on the customer's account books.

A participant shall administer the securities deposit and withdrawal procedures separately. Securities to be deposited and withdrawn shall not offset each other.

The deposit and withdrawal of securities by a participant for settlement of the current sale and purchase transaction shall be made in accordance with the rules prescribed by a CSDE. This Chapter shall not apply thereto.

Where an issuer of securities of the same class delivers securities by book-entry transfer without printing physical certificates of such securities, withdrawal procedures for its customers shall be in accordance with the rules prescribed by the CSDE.