THE Securities and Exchange Commission (SEC) may defer the implementation of a hike in the minimum public ownership (MPO) of listed companies, as the local stock market slumped on fears the continued spread of the coronavirus disease 2019 (COVID-19) could sink the global economy.

SEC Chairperson Emilio B. Aquino said the commission finds it appropriate to give the local market some time to recover before imposing the MPO adjustment.

“Very messy ’yung market natin ngayon [Our market is very messy right now]. You can see the cap go below the 7,000 resistance level. Siguro [Maybe] we’ll have to rethink that (timetable),” Mr. Aquino told reporters last week.

The Philippine Stock Exchange index (PSEi) neared bear market territory, closing 2.6% lower at 6,787.91 on Friday.

The SEC has long been planning to increase the MPO requirement for listed firms. Last year, the corporate regulator said it was looking at setting the minimum public float to 20-25%, which companies must achieve within a five-year period.

At present, listed firms are required to have a 10% minimum public float, although companies that conducted initial public offerings since 2017 are required to have a 20% public float.

Bourse operator Philippine Stock Exchange, Inc. has been advocating the increase of the MPO as well, believing it will help lower the chances of price manipulation, among other reasons.

“We (still) want that. Medyo timing issue lang [It’s just a timing issue],” Mr. Aquino said.

COIN OFFERING RULES
The SEC chairperson also said the guidelines for initial coin offerings (ICO) may be released by the middle of the year.

“We gave ourselves until midyear. Meron na ’yun (We already have it). It’s done,” Mr. Aquino said. “For consideration of the (commission) en banc na lang ’yun eh. It’s gone through all the comment stage. We’re almost there.”

The ICO rules, or guidelines in regulating companies that issue coins or tokens to raise money, is an initiative of the SEC to protect investors given the rise of investment scams offering tokens.

The proposed rules published in December 2018 require companies that want to do an ICO to request the SEC for an assessment of its tokens if these will be considered as securities. If identified as a security, it must be backed by a white paper detailing the use of funds and the description of the currency, among others.

The guidelines were originally scheduled for release last year after two rounds of consultation with stakeholders, but were delayed due to comments from alleged scammers. — Denise A. Valdez

RELATED ARTICLESMORE FROM AUTHOR