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MANILA – The Philippine Stock Exchange on Sunday said it will ask the Securities and Exchange Commission to reconsider its penalty, even as the local bourse settles the fine imposed for violating disclosure rules.
"We will pursue further discussions with SEC on how to harmonize interpretations and policies of both regulators so we could avoid these situations in the future," PSE president Hans B. Sicat said in a statement.
In a letter dated May 29, SEC imposed a basic fine of P50,000 and a daily fine of P5,000 on the PSE for the late submission of its annual report, violating Section 17.2 A of the PSE Disclosure Rules.
The PSE was directed to pay the penalty within five days from receipt of the order.
Companies are required to submit their respective annual reports using SEC Form 17-A within 105 days after the end of the fiscal year.
In a letter dated May 21 to the SEC, the bourse said the delay in the submission of the consolidated financial statement was due to the "belated discovery" that it was not attached to the original annual report, which only included the parent company's financial statement.
The PSE said it immediately notified the SEC-Market Regulation Department regarding the matter and filed a supplemental annual report with the consolidated financial statement.
The bourse requested for "consideration and leniency" because it was the first instance that it failed to attach the consolidated financial statement to its annual report, citing the "good faith" shown by the PSE in immediately notifying the Commission about the matter and its immediate action to file the supplemental report.
The corporate regulator found the explanation the PSE provided as "inadequate," citing its failure to comply with the requirements for filing an annual report.
"This is contrary to the basic principle found in the PSE Disclosure Rules that all disclosures should be full, fair, timely and accurate," the SEC said.
The SEC warned the bourse and its officials "to take such measures that will ensure faithful compliance with the laws, rules and regulations implemented by the Commission..."
"Please bear in mind that the Department shall not hesitate to institute, should there be a need, the appropriate administrative proceedings and impose heavier penalties against your company and/or its responsible officers in the occurrence of the same or any similar violations in the future…,” the regulator said.
This comes as an embarrassment for the PSE, which has suspended trading of shares in listed companies for similar offenses.
Recently, the Exchange suspended trading in Eton Properties Philippines Inc. for its failure to comply with reportorial requirements.
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