To assist the development of innovative industries, improve fund raising channels, and expand the scope of our capital market, the Financial Supervisory Commission (FSC) has announced that the Taiwan Stock Exchange (TWSE) and Taipei Exchange (TPEx) will establish Taiwan Innovation Board (T.I.B.) and the new board under emerging stock market within its multi-tiered capital market framework to facilitate innovative businesses in raising funds on the capital market.
The FSC has supervised the two exchanges to refer to international capital market practices in order to ensure the function of the two Boards, protect investor rights, and boost industry development. In addition, the establishment of the two Boards has taken into consideration the difficulties that innovative new companies face, such as the gap between their preliminary business model and existing requirements for listing and public offering. The FSC held a forum on August 31, 2020 to promote the public’s understanding and gather consensus, followed by public hearings hosted by the TWSE and TPEx in the mid October to incorporate comments and concerns into the proposed framework.
The outline of the proposed Taiwan Innovation Board and TPEx’s new board is as follows:
I. Streamlined public offering process:
Two Boards will adopt a streamlined public offering process to accelerate the entry of innovative companies into the capital market by reducing cost and time spent on preliminary procedures.
II. Suitable listing standards and requirements:
The Taiwan Innovation Board features three categories of listing requirements based on market cap for innovative companies with various business models, whereas the TPEx’s new board is not limited to quantitative requirements. This allows innovative companies to raise funds in market segments best suited to their business needs.
III. Participants exclusively to qualified investors:
Due to the fact that most innovative businesses are still in early-stage development and therefore pose a higher investment risk, participation is limited to qualified investors to both support innovative companies and safeguard the investing public. Eligible participants include professional  institutional investors, juristic persons or funds that meet specific requirements, and individual investors who have more than 2 years of securities trading experience and at least NT$10 million net asset or whose average income exceeds NT$1.5 million for the past two years.

IV. Underwriters are mandated to assist post-listing compliance:
To assist innovative companies in adhering to regulations and enhancing their corporate governance, and referring to the sponsor systems of other countries, continued guidance and consultation services shall be provided by underwriters during the listing period of innovative companies.
The FSC, TWSE, and TPEx will continue to study and amend relevant regulations in line with the above plan, with the two exchanges implementing the setup of the Taiwan Innovation Board and TPEx’s new board, slated to launch officially in the third quarter of 2021. It is expected that this bold new initiative will support innovative companies in raising funds on the capital market, boost the development of the real economy, and strengthen the competitiveness of Taiwan’s capital markets.

Contact: Mr. Tseng, Head of Corporate Finance Division, Securities and Futures Bureau
Telephone: (02)2774-7401
Please direct all correspondence and inquiries to
http://fscmail.fsc.gov.tw/FSC-SPS/SPSB/SPSB01002.aspx