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Friday, March 29, 2024

PSE to get exemption from SEC’s regulation

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The Philippine Stock Exchange expects to finally get a much-awaited exemption from the Securities and Exchange Commission on the brokers’ ownership limit this month, which will allow it to complete the purchase of nation’s bond exchange.

The PSE last week obtained the nod of the Philippine Competition Commission to proceed with the acquisition of a controlling interest in Philippine Dealing System and Holdings Inc.

“We have been cleared by the PCC and that is an important hurdle for us,” PSE president and chief executive Ramon Monzon said.

Also boosting PSE’s confidence it will get the SEC approval is the filing of its plan with the corporate regulator to proceed with the stock rights offering. The PSE plans to issue 11.5 million common shares through a stock rights offering.

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Monzon said the PSE obtained the approval of the brokers as well as strategic investors to waive their pre-emptive rights to subscribe to the stock the rights offering.

“In  our computation with 11.5 million in stock rights, the final ownership of brokers in the PSE will be less than 20 percent, which is the required statutory requirement under the Securities Regulation Code,” Monzon said.

“Hopefully, SEC will see its way to approve the broker exemption because we have already filed the registration statement for the rights offering so this is not just a joke. SEC knows the filings we made so there is no doubt us complying with this,” he added.

The PSE plans to conduct the rights offering in February. The bourse earlier hired BDO Capital and Investments Corp. and First Metro Investments Corp. as the underwriter for the offering. 

The bourse earlier invited Shenzhen Stock Exchange to buy shares from the rights offer.

The PSE has been planning to acquire majority stake in PDS Holdings, which serves as the holding firm for fixed-income trading platform Philippine Dealing and Exchange Corp., Philippine Depositary and Trust Corp. and Philippine Securities Settlement Corp.

To finalize the deal, the PSE must secure an exemptive relief from the SEC. The relief will allow PSE to acquire a majority interest in PDS Holdings as current rules prohibit any single industry from owning more than a 20-percent stake in any exchange.

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