The Philippine Stock Exchange said Tuesday it will revoke the status of inactive trading participants unless they resume brokerage operations.
PSE said in a memorandum circular posted on its website that inactive TPs would be given three months from the effectivity of the policy to submit a sworn undertaking to commence broker operations. It said otherwise, the exchange would initiative proceedings for revocation of their status as TPs.
There are 182 accredited trading participants in the exchange, including 134 active TPs and 48 inactive TPs.
Inactive TPs who plan to resume brokerage operations are also be required to increase their unimpaired paid-up capital to P100 million over the next six months from the effective of the policy.
“Failure to do so will also result in the revocation of their status as TPs,” the exchange said.
Participants who will comply with the conditions will then be given one year to finally resume brokerage operations.
PSE said the policy would take effect June 13 and would cover TPs that have not be operating since May 2012 or earlier.
“The exchange will further issue guidelines on the implementation of this policy,” PSE said.
The implementation of this policy is in line with the exchange’s plan to reduce brokers’ ownership in PSE to 20 percent as required by the Securities Regulation Code.
PSE president Ramon Monzon earlier said one way to reduce brokers’ ownership in the exchange was to remove in the computation the shares held by inactive brokers.
If removed, brokers ownership will drop 3.4 percent to 24.9 percent from 27.9 percent.
