These Rules are prescribed pursuant to the provisions of Paragraph 2 of Article 18 of the Securities and Exchange Law (the "Law").

The term "Securities Investment Trust Enterprise" ("SITE") referred to herein shall mean the enterprise engaging in the following businesses:
　1. issuing beneficiary certificates for raising securities investment trust fund;
　2. using securities investment trust fund in the investment in securities and its related products;
　3. accepting consignment of discretionary account investment; and
　4. other relevant businesses as approved by the Securities & Futures Commission of the Ministry of Finance ("SFC").
　The beneficiary certificates referred to in Item 1 above may be collected and delivered through book-entry transfer, in which case printing of physical beneficiary certificates may be exempt.
　A SITE engaging in the business as referred to in Item 3 of Paragraph 1 above shall process business matters in accordance with the Regulations Governing the Discretionary Account Business of Securities Investment Consulting Enterprises and Securities Investment Trust Enterprises.

The operation of a SITE shall be approved by the SFC.

The SITE shall be organized in the form of company-limited-by-shares only, and its paid-in capital shall not be less than NT$300,000,000.
　The total amount of the minimum paid-in capital referred to in the preceding Paragraph shall be fully subscribed to by the promoters at the time of incorporation.

The total combined number of shares held by each of a SITE's shareholders, except for those shareholders meeting the qualifications under Article 8 herein, and the shareholder's related persons or other persons in whose name shares are held, shall not be more than 25% of the total issued and outstanding shares of such SITE.
　The total numbers of shares held by the shareholder of the SITE established prior to the March 1, 1996 amendment and implementation of these Rules and its related persons or other persons in whose name shares are held shall not be subject to the restriction referred to in the preceding Paragraph, provided that purchase of shares shall not be allowed if the portion in excess of 25% has been assigned.
　The term "related persons" referred to in the preceding two Paragraphs shall mean any of the following:
　1. Where the shareholder is a natural person, the spouse, blood relative within the second degree, or the enterprise in which the shareholder or its spouse is acting as the responsible person; or
　2. Where the shareholder is a juridical person, any juristic person who is under the common control of, or who controls or is controlled by, the juristic person shareholder.

　A director or supervisor of a SITE or a shareholder holding more than a 5% share of the total outstanding shares of a SITE may not concurrently serve as the promoter of any other domestic SITE or hold more than 5% of the outstanding shares of such a SITE.
　A person having the relationship of affiliated enterprise as defined under Chapter 6-1 of the Company Law with respect to a director, supervisor or shareholder holding more than 5% of the outstanding shares of a SITE may not assume the position of promoter, director, supervisor, or shareholder with a more than 5% of the outstanding shares of another SITE.

One or more of the shareholders of a SITE shall conform to the qualifications set forth under Article 8, and the total combined shares of said persons shall not be less than 20% of the total outstanding shares of the SITE.
　When a shareholder as referred to in the preceding paragraph assigns shares, the SITE shall apply for recordation with the Securities and Futures Commission prior to such assignment.