How were convertible bond disclosures and rules strengthened at the end of 2024?

The Financial Services Commission amended the Regulations on Securities Issuance and Disclosure, etc., with effect from December 1, 2024.

When a company designates who will exercise a call option or transfers a call option to a third party, it must disclose the specific exerciser, whether consideration was exchanged and the amount paid, among other things, in a major matters report. In addition, when a company acquires its convertible bonds before maturity, it must disclose the reason for the acquisition and how it will handle them going forward, such as cancellation or resale, and the reference date was clarified so that the conversion price of privately placed convertible bonds reflects the market price on the day payment is actually made.