On September 30, 2003 and June 15, 2004, the Securities and Futures Bureau issued amendments to  the “Guideline Governing Investment in Securities by Overseas Chinese and Foreign Nationals” and relevant  regulations, in which the Securities and Futures Bureau lifted certain restrictions and simplified the procedures  required for foreign investments in Taiwan’s securities market. The amendment focuses mainly on the following  aspects:  • The concept of “qualified foreign institutional investors” no longer exists. Foreign investors are  reclassified as “off-shore foreign institutional investors,” “on-shore foreign institutional investors,”  “off-shore general foreign investors,” and “on-shore general foreign investors” based on whether  they are institutions or natural persons, and whether they have presence in Taiwan.  • For foreign investors to invest in Taiwan’s securities market, registration with the Taiwan Stock  Exchange, instead of the approval of the Securities and Futures Bureau, is required. The Taiwan  Stock Exchange may withdraw or rescind the registration if the application documents submitted  by foreign investors are untrue or incomplete, or if any material violation of the relevant regulations  exists.  • Off-shore foreign investors may provide the securities they hold as the underlying shares of  depositary receipts and act as selling stockholders in depositary receipts offerings.  • Off-shore foreign institutional investors are required to appoint their agent or nominee to attend the  stockholders’ meeting of the invested company.  Currently, subject to the specific restriction imposed by relevant regulations, the off-shore foreign  institutional investors may invest in the Taiwan securities market without any amount restriction. However, a  ceiling will be separately determined by the Securities and Futures Bureau after consultation with the Central  Bank of the Republic of China (Taiwan) for investment by offshore oversea Chinese and foreign individual  investors.  Other than:  foreign investors who wish to make direct investments in the shares of Taiwan companies may submit a “foreign  investment approval” application to the Investment Commission of the Ministry of Economic Affairs of Taiwan  or other government authority to qualify for benefits granted under the Statute for Investment by Foreign  Nationals. The Investment Commission or other government authority reviews each foreign investment approval  application and approves or disapproves the application after consultation with other governmental agencies.  Any non-Taiwan person possessing a foreign investment approval may remit capital for the approved investment  and repatriate annual net profits and interests and cash dividends attributable to an approved investment. Stock  dividends, investment capital and capital gains attributable to the investment may be repatriated with approval of  the Investment Commission or other government authority.  • foreign institutional investors;  •  foreign individual investors; and  • investors in overseas convertible bonds and depositary receipts,  Foreign Investment Approval  PART I 110