level Financial Supervisory Commission plans to lift current restrictions that prohibit Taiwanese nationals from purchasing overseas bonds and depositary receipts issued by local companies, sources said. After the restrictions are lifted, the nation's citizens will be allowed to purchase securities issued by local companies in the form of convertible eurobonds, global depositary receipts, American depositary receipts, and the like. The purchases would have to be made through a local investment trust fund, however, and only securities listed on the secondary market can be bought and sold. The central bank has already given its approval to the proposed amendments. At the moment domestic investment trust funds have roughly NT$3.6 trillion (US$111.4 billion) to operate with, and of this amount roughly NT$2.8 trillion is invested in overseas securities. The new regulations would give investment funds and their clients a wider variety of financial instruments to choose from, and could make it easier for local firms to raise capital as well. FSC officials noted that the ban on Taiwanese buying overseas bonds and DRs issued by local companies has been in place for many years.
