Body of Taiwan securities firm chief found in sea

TAIPEI (Reuters) - The embattled chairman of a major Taiwan securities firm was found dead in waters close to the island on Friday morning, the firm said, startling the financial community and sending the company's shares tumbling.

A fisherman in the outlying Penghu islands discovered Polaris Securities Co (2854.TW) Chairman Wayne Pai, 55, who was reported missing in the area from Wednesday, a company statement said.

Taiwan prosecutors had questioned Pai in May in connection with suspicious share transactions, local media say.

It is unclear whether the death was suicide, an accident or murder, Penghu-based coastguard official Huang Hsien-yung said.

"We can't make any kind of comment now," he said.

Pai's death sent Polaris Securities shares down 6.8 percent to its daily limit around noon on Friday. Taiwan's main TAIEX share index fell 1.7 percent.

"All company employees deeply feel that this incident is unexpected, and deeply sad," the Polaris statement said, adding that the company's finances remained healthy.

Polaris Securities, founded in 1988, has more than 15 percent of Taiwan's brokered online trading industry and has assets worth T$78.45 billion ($2.58 billion).

($1=T$30.4)

(Reporting by Ralph Jennings; Editing by Keiron Henderson)