Regulations Governing Securities Investment Trust Funds Article 37

"Passive ETF" refers to a fund that tracks, simulates, or replicates the performance of an underlying index and is traded on a securities exchange market, with subscriptions and redemptions carried out through delivery in-kind or by the methods prescribed in the securities investment trust agreement.The component securities of the underlying index of the preceding paragraph include stocks, bonds, and other securities approved by the FSC. If the component securities of the underlying index include both stocks and bonds, the index compilation rules shall specify the proportion of allocation of each type of component security, and the term "balanced" shall be expressly indicated in the index name.The underlying index of paragraph 1 shall meet the conditions given in Article 32, paragraph 2.A passive ETF may be linked to a single offshore passive ETF that complies with the requirements of Article 26 of the Regulations Governing Offshore Funds.If any event in Article 12, paragraph 6 of the Regulations Governing Offshore Funds occurs with respect to a single offshore passive ETF that is linked to by a passive ETF as described in the preceding paragraph, the SITE shall, after receiving notice of a meeting of beneficial owners issued by the offshore fund entity or any other relevant notice, report to the FSC for approval, and make a public announcement within 3 days from the date of occurrence of the event.