InterAksyon.com
The online news portal of TV5
MANILA, Philippines -- Trading restrictions imposed three years ago on six listed firms controlled by businessman William Gatchalian have been lifted, the local bourse said on Friday.
In a memorandum dated January 19, the Philippine Stock Exchange (PSE) said trading can resume for Acesite (Phils.) Hotel Corp., Forum Pacific Inc., Mabuhay Vinyl Corp., Philippine Estates Corp., Waterfront Phils. Inc., and Wellex Industries Inc.
The companies however remain "subject to close watch," the PSE said.
“The lifting of the trading restrictions is conditioned on the companies' and its related entities' continuing maintenance of only one account with Westlink Global Equities Inc. for the purpose of trading PSE listed shares,” said Hans Sicat, PSE president and chief executive officer.
Westlink Global is a brokerage firm affiliated with Gatchalian.
"It shall also be without prejudice to any action that may hereafter be deemed necessary by the Exchange in accordance with existing laws and rules in case of any violation of the PSE Rules and in order to maintain and preserve an efficient, fair and orderly market as mandated by the Securities Regulation Code," the bourse chief said.
The PSE and unit Securities Clearing Corp. of the Philippines (SCCP) three years ago imposed early delivery requirements on the six firms for unspecified violations. This was meant to protect the "public interest and as a risk management measure."
Brokers trading the stocks of the six firms are required to comply with certain procedures, such as ensuring the shares are in the selling broker's 'house' account with the Philippine Depository and Trust Corp. before posting a sell order.
Likewise the buying broker should have the buyer deliver 100 percent cash payment before posting any buy order.
On T1 or a day after the transaction, the net selling broker should make an early delivery of their net securities delivery obligations by 12 noon, or deposit cash collateral equivalent to 100 percent of the market value of their securities delivery obligations if the securities are not available for early delivery.
The net buying broker on their part should make an early delivery of the cash equivalent to 100 percent of the value of their net buying of the said shares by 12 noon of the same day.
