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By Denise A. Valdez, Senior reporter
THE Philippine Stock Exchange, Inc. (PSE) aims to implement the short selling and new listing rules early next year to help drive activity in the local market.
In a virtual press conference on Monday, the president and CEO of PSE Officer (CEO) Ramon S. Monzon said the broker expects to receive regulatory approvals within the fourth quarter to allow short selling as soon as the befirst quarter of 2021.
The short sale is the sale of a security that is not owned by the seller, but that will be settled by the delivery of loaned securities. Investors can make a profit by selling borrowed securities at a higher price point and then buying them at a lower price in the future.
The PSE gave the green light to the short selling guidelines in 2018, but they were not implemented due to some pending approvals from the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR).
Specibecally, the PSE is awaiting approval from offonshore collateral for foreign investors, accreditation by Philippine Depository and Trust Corp. as certibeed securities lending agent, and the global master securities lending contract.
“I hope we can get the approvals before the end of the year, so we can launch (short sale) early in befirst quarter of next year, ”Monzón said.
He noted that going short can attract many foreign investors by allowing them to hedge their investments.
The PSE also aims to present the beFinal draft of the listing rules amended to the SEC within the next two weeks. Wait to ensure the regulator start signal by befirst quarter of 2021.
In September, the PSE submitted proposed amendments to the listing rules that would ease the requirements for companies holding an initial public hearing orffering (OPI).
Among the proposals are the elimination of the minimum market capitalization requirement of P500 million to list on the main PSE board, and the positive EBITDA requirement to list on the small, medium and emerging PSE board.
Interested parties were allowed to comment on the draft rules until October 7. Monzón said the main inquiries were related to sponsorship criteria, which seeks to allow investment houses to guide a company in its initial public offering phase for up to three years after its listing.
“We should send that (to the SEC) in the next week or two. Then we will follow up with the SEC … (hopefully) for the first quarter the listing rules can be approved so that we can go out on the campaign trail ”, said Monzón.
Also on Monday, the PSE elected four new members of the board of directors, including two independent directors.
This makes the PSE comply with SEC Circular Memorandum No. 20 Series of 2020, which requires the board of directors of exchanges to assign one third of the positions to independent directors and have at least four representatives for issuers, investors and other markets. . Participants.
The two new independent directors are Teresita J. Leonardo-de Castro, former president of the Supreme Court of Justice, and Consuelo D. García, former country manager of ING Bank.
Also elected as new directors are Ferdinand K. Constantino, Chief benance ofbecer and treasurer of San Miguel Corp., who will be the sector representative of the directors-investors not intermediaries; and Diosdado M. Arroyo, president of Securities Specialists, Inc., who will act as broker-director.
They will replace Emmanuel O. Bautista, Francis Chua, Amor C. Iliscupidez and Alejandro T. Yu.
The rest of the PSE directors were re-elected: José T. Pardo, Roberto Cecilio O. Lim and Vicente L. Panlilio as independent directors; Anabelle L. Chua, Rolando Jose L. Macasaet and Edgardo G. Lacson as non-running directors; and Eddie T. Gobing, Eusebio H. Tanco, Wilson L. Sy, and Ma. Vivian Yuchengco as broker-directors.
Mr. Monzón was re-elected as President and CEO.
“The PSE Board will continue to adopt reforms and promote initiatives that will help make our market more competitive in the region. I am scammedbeHowever, the new members of the board will contribute significantly to the growth and success of the organization, ”said Mr. Pardo, president of the PSE, in a statement.
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