MANILA, Philippines–The Securities and Exchange Commission (SEC) has released draft guidelines to clarify which transactions are exempt from registration under the Securities Regulation Code (SRC).
The move is part of the SEC’s efforts to simplify business operations and help companies enter the capital market.
In an Aug. 15 notice, the SEC’s Markets and Securities Regulation Department made public a draft memorandum circular for comment.
The proposed rules would amend existing provisions in the SRC’s implementing rules and regulations, specifically Rules 10.1, 10.2 and 10.3.
Section 10.1 of the SRC lists certain securities that do not require the usual registration process before being sold or offered in the country. Section 10.2 allows the SEC to exempt other transactions not included in 10.1, while Section 10.3 outlines the requirement to notify the SEC of such exemptions and pay a fee of one-tenth of one percent of the securities’ total value.
The SEC said various rules and circulars have led to confusion about how companies should secure these exemptions.
The draft guidelines cited the need “for prospective guidance to the public on the applicability of the requirement to obtain confirmations of exemption under Section 10 of the SRC, consistent with the policy of the Commission to improve ease of doing business, facilitate access to the capital market, and provide predictability in government transactions, all while ensuring protection to the investing public.”
The SEC said it is accepting public comments on the draft rules.
