SEC eyes new foreign ownership rules in Q2 ‘13

November 10, 2012 12:23 am 

By Joann Santiago

MANILA, Nov 9 – – The Securities and Exchange Commission is considering coming out with new rules on foreign ownership in six months.

The Commission conducted Friday a dialogue on this topic to gather insights and feedback from the public.

SEC Chairman Teresita Herbosa said they have noted the issues raised during the event but also asked the attendees to submit their respective position papers.

"With the suggestion that we should consult with other agencies, plus the fact that the comments we're going to receive are quite diverse, I suppose we would have to be finished on this, on the consultation and another dialogue perhaps when the second draft comes out, maybe in six months time," she said.

One of the issues discussed during the dialogue, which was attended by representatives of listed companies, is the definition of ownership ceiling.

Last October, the Supreme Court recently ruled that foreign ownership will only be allowed up to 40 percent and this covers the voting shares and not the total capital of a private company.

"We definitely have to look back again to the definition, at Section 4, which is actually the meat of the matter," said Herbosa said referring to the Commission’s rules government foreign ownership of local companies.

"We try to align the circular with the FIA (Foreign Investment Act), the IRR, and other laws, and make sure that whatever rules will be proactive and not set back the capital markets behind," she stressed. (PNA)

HBC/JS/UTB

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