FOREIGN companies operating in the Philippines are spared additional time to submit their security deposits to the Securities and Exchange Commission (SEC) due to the enhanced community quarantine (ECQ) over Luzon.
In Memorandum Circular No. 11 of the corporate regulator, the SEC allowed foreign firms that are licensed to do business in the Philippines to give their initial deposits 30 days from when the ECQ will be lifted.
This is an extended accommodation from the previous requirement that security deposits should be given within 60 days after the issuance of an SEC license, even if the date falls within the quarantine period.
“We recognize the impact of the COVID-19 pandemic not just on registered corporations in the Philippines but also on foreign corporations all over the world,” SEC Chairperson Emilio B. Aquino said in a statement yesterday.
“Giving corporations more time and the flexibility to comply with the applicable rules and regulations could go a long way in easing the burden on the business sector during these extraordinary times,” he added.
The ECQ over Luzon is set to last until Apr. 30, based on the latest announcement of the inter-agency task force in charge of handling the coronavirus disease 2019 (COVID-19) situation.
Aside from extending the period for foreign firms to submit their initial deposits, the SEC is also allowing submission of additional securities 30 days after the lifting of the ECQ.
For securities deposits that matured during the quarantine period, a 30-day extension after the ECQ is lifted is likewise given for the filing of an application for substitution of securities.
Security deposits at the SEC are part of the requirements from foreign corporations operating in the Philippines, as guided by Republic Act No. 11232 or the Revised Corporation Code of the Philippines.
These deposits may be bonds or other evidence of indebtedness of the Philippines government, shares of stock or debt securities, shares of stock in listed domestic corporations, shares of stock in domestic insurance companies and banks, or any combination of these with an actual market value of at least P500,000 or any amount set by the SEC.
Additional securities are required of foreign companies as well, which should be given to the SEC every six months of each fiscal year of the license. — Denise A. Valdez
