Trading suspension by January 2013 awaits errant listed firms
MANILA, Philippines - The Philippine Stock Exchange (PSE) reiterated its rule on minimum public ownership, which slaps erring firms with trading suspension if they fail to meet the 10% minimum by January, 2013.
In a December 17 memorandum, the PSE said the grace period for complying with the requirement will strictly end on December 31, 2012.
This call also served as the PSE's red flag for investors who owns stocks in about 25 companies that still fail to meet the requirement as of December 7.
"As the deadline for compliance with the rule is nearing, we urge investors to continue to update themselves of developments concerning listed companies that remain to be non-compliant up to this date,” PSE President and Chief Executive Officer Hans B. Sicat said.
Sicat said this rule is "one of the governance initiatives that we believe will help democratize the ownership of listed companies and increase trading activity."
On January 1, the PSE will impose a 6-month trading suspension on the shares of non-compliant listed companies. Automatic delisting awaits companies that would still fail to comply with the rule.
The Bureau of Internal Revenue has already announced that it will impose capital gains tax and a documentary stamp tax (DST) on every sale, barter, exchange or other disposition of the errant firms' shares by January 1, 2013. - Rappler.com