By PNA and U.S. News Agency / Asian
The Philippine Stock Exchange (PSE) said it will review its listing rules for the Second and Small and Medium Enterprises (SME) Boards.
“We are proceeding with a review of our listing rules to enhance the safeguards for the investing public. We are aligning and updating our rules with the times which we believe will be beneficial in the long-run for both
the companies wishing to list on these boards and the market. One of the options we are looking at is consolidating both Second and SME Boards to enhance the investment protection features,” PSE Chief Operating Officer
Roel A. Refran said.
The PSE announced that it will temporarily defer the processing of initial listing applications under the Second and SME Boards while it is reviewing the rules.
The listing rules for the Second and SME Boards were issued to enable small to mid-cap companies which demonstrate a potential for growth, to tap the capital markets. The rules applied to First Board or large capitalized companies provide stringent track record and profitability requirements while the rules for Second and SME boards provide a longer lock-up period and require additional progress and risks reports in line with the
companies’ business plans and prospects.
“In the event the PSE review leads to possible amendments to existing rules, we will be submitting this to the public for comments and to the Securities and Exchange Commission for final approval,” Atty. Refran said.