Published On: Thu, Jul 8th, 2010

SEC Denies PSE Bourse’s Appeal; Fine Stays

The Securities and Exchange Commission has denied the appeal of the Philippine Stock Exchange to reconsider the P500,000 penalty imposed by the corporate regulator.

Informed sources said the commission upheld its decision to penalize the PSE with P500,000 for various violations of the Securities Regulation Code.

The SEC penalized the PSE with P100,000 for each year from 2006 to 2009 for violating the ownership limit. The code prohibits groups and individuals from owning more than 20 percent and 5 percent of the voting rights of the exchange, respectively.

The SEC also fined PSE P100,000 for not providing timely disclosure to the corporate regulator over its decision to impose a one-month trading suspension against listed Benguet Corp.

The sources said the PSE asked the SEC to regularly check its Web site to prevent a similar situation in the future.

The SEC early this year ordered the reduction in the voting rights of stockbrokers to 20 percent during the annual shareholders’ meeting of the exchange.

Brokers, through Philippine Association of Securities Brokers and Dealers Inc., appealed the SEC order with the Court of Appeals and successfully obtained a temporary restraining order against the regulator.

The SEC also intervened in the PSE’s decision to implement a one-month trading halt on the shares of Benguet.

The PSE in October last year suspended the trading of Benguet shares after the mining company failed to disclose that it received default notices from creditors. Benguet has unpaid P1.2 billion worth of loans to a group of creditors.

Source: Manila Standard Today

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