Philippine Stock Exchange

www.pse.com.ph  

Tel : 63.2 819 4100 
Fax : 63.2 864 9047

 

Representatives

Chairman: Mr. Jose T. Pardo

President & CEO : Mr. Hans B. Sicat

 

 

Types of Securities Traded

Name of Trading Systems

(cash and derivatives)

Trading Hours

Equities :

1.                Common Stocks

2.                Preferred Stocks

3.                Warrants

4.                Philippine Depositary Receipts

 

 

PSEtrade (NSC V900 System)

Pre-open

9:00 AM

 

Market Open

9 :30 AM

 

Continuous Trading

9:30 AM - 11 :59 AM

 

Market Recess

12:00 NN - 1 :29 AM

 

Market Resumes

1:30

 

Continuous Trading

1:30 AM – 3 :17 AM

 

Pre-Close

3 :17 PM

 

Run-off/ Trading-at-Last

3 :20 PM – 3 :30 PM

 

Market Close

3 :30 PM

 

Supervisory Body

Securities & Exchange Commission (SEC)

Under the Securities Regulation Code (SRC), the SEC is responsible for regulating the securities market.  It is a government agency under the administrative supervision of the Department of Finance of the Republic of the Philippines.

  • Organization.    The SEC is headed by a Chairperson and four Commissioners who are all appointed by the President of the Philippines for a term of 7 years each. (SRC, Section 4.1)

The Chairperson is chief executive officer of the SEC. The chairperson executes and administers the policies, decisions, orders, and resolutions approved by SEC and has general executive direction and supervision of the work and operation of the SEC, its members, bodies, boards, offices, personnel, and all its administrative business. (SRC, Section 4.3)

The SEC has five principal departments; each headed by a Director.  Its core function of capital market regulation is performed by the Market Regulation Department, Corporation Finance Department, and Investor Protection and Surveillance Department.  Its company registration and enforcement functions are performed by the Company Registration and Monitoring Department, and the Enforcement and Prosecution Department, respectively.

  • Power and Functions. Under Section 5 of the Securities Regulation Code (Republic Act 8799), the Commission shall have, among others, the following powers and functions: 
  1. Have jurisdiction and supervision over all corporations, partnerships or associations who are the grantees of primary franchises and/or a license or permit issued by the Government;
  2. Formulate policies and recommendations on issues concerning the securities market, advise Congress and other government agencies on all aspects of the securities market and propose legislation and amendments thereto;
  3. Approve, reject, suspend, revoke or require amendments to registration statements, and registration and licensing applications;
  4. Regulate, investigate or supervise the activities of persons to ensure compliance;
  5. Supervise, monitor, suspend or take over the activities of exchanges, clearing agencies and other SROs;
  6. Impose sanctions for the violation of laws and the rules, regulations and orders issued pursuant thereto;
  7. Prepare, approve, amend or repeal rules, regulations and orders, and issue opinions and provide guidance on and supervise compliance with such rules, regulations and orders;

Exercise such other powers as may be provided by law as well as those which may be implied from, or which are necessary or incidental to the carrying out of, the express powers granted the Commission to achieve the objectives and purposes of these laws.

Name of Clearing & Settlement Organization

Securities Clearing Corp. of the Philippines (SCCP)

The SCCP, a wholly-owned subsidiary of the PSE, and is under the regulatory supervision of the SEC. SCCP serves as a clearing and settlement agency for all trades executed in the Exchange. SCCP is responsible for establishing the cash and securities liabilities and entitlements of its Clearing Members, synchronizing the settlement of funds and the transfer of securities based on the Delivery-versus-Payment Model 3 or Multilateral Net Settlement; guaranteeing the settlement of trades in the event of a trading participant’s trade default in order to ensure the finality and irrevocability of all Exchange trades through its Fails Management procedures; implementing appropriate risk management measures in order to mitigate risks inherent in the clearing and settlement of Exchange trades and the maintenance and administration of the Clearing and Trade Guarantee Fund (CTGF).

Settlement Cycle

 

 

 

 

 

 

 

 

 

 

 

All equity transactions, whether buying or selling has a settlement period of T+3 (trading day + 3 working days). This means that a seller should be able to deliver the stock certificate, if any, to his broker and the buyer must have paid the cost of transaction to his broker within 3 working days after the trade was done. Historically, settlement was done manually (27-day cycle). With the advent of scripless trading wherein settlement is done via the book-entry-system (thru Philippine Central Depository or PCD), transactions are settled on the third day after trade date. Under this system, the investor has the option to hold on to his certificate (uplift) or deposit (lodge) this certificate in PCD through his broker-participant account.

Name of Central Securities Depository

Philippine Depository and Trust Corp. (PDTC)

PDTC is a subsidiary of Philippine Dealing System Holdings Corporation (PDSH) that offers custody of depository, custodian services or registry to investors in the exchange. The custody services of PDTC involve safekeeping and overseeing of securities for clients. The PSE holds a 20% stake in PDSH.

Commissions on Transactions levied by Exchange

Schedule of Transaction Fees Levied on Investors

Type of Fee

Rate

Brokerage Commission (Min.)[1]

Transaction Value

Minimum Commission (+ 12% VAT)

Php100 million and below

0.0025

Above Php100 million up to Php500 million

0.0015 but not less than Php250,000

Above Php500 million up to Php1 billion

0.00125 but not less than Php750,000

Above Php1 billion up to Php5 billion

0.001 but not less than Php1.25 million

Above Php5 billion up to Php10 billion

0.00075 but not less than Php5 million

Above Php10 billion

0.0005 but not less than Php7.5 million

Upliftment Fee[2]

P50 per certificate + 12% VAT and P50 per certificate as PCD fee

Cancellation Fee

P20.00 + 12% VAT (Applicable only if to be certificated)

Withdrawal Fee/ Cancellation Fee on Lodgement

Php100 per certificate for processing + Php20 per certificate on cancellation + 12% VAT

Stock Transaction tax

0.5% of the value of transaction




[1] Under Memo for Brokers No. 2008-0467, the minimum commission rates were made effective on October 6, 2008 and subject to further action by the Securities and Exchange Commission. The minimum rates do not apply to broker-to-broker or odd lot transactions.

[2] The upliftment fee is non-VAT if the stock transfer is a banking stock transfer.

 

Taxes on Dividends, Interests

Under the National Internal Revenue Code of 1997, as amended, and except in cases where preferential tax treaty rates treaties are applicable, dividends received from domestic corporations are subject to a withholding tax of 10% if recipient is a citizen or resident alien, 20% if recipient is a non-resident alien individual engaged in trade or business in the Philippines, and 25% if the recipient is a non-resident alien individual not engaged in trade or business in the Philippines. Dividends received by Domestic Corporation from another domestic corporation, and by a resident foreign corporation from a domestic corporation are not subject to tax. The rate of income tax withheld on dividends paid to a non-resident foreign corporation from a domestic corporation is 30% of dividends received, which may be reduced to 15% subject to the condition that the country in which the nonresident foreign corporation is domiciled, shall allow a credit against the tax due from the nonresident foreign corporation taxes deemed to have been paid in the Philippines equivalent to 15%.

 

 

Withholding Tax

Filipino citizen or resident alien: 10% of dividends received

Non-resident alien individual engaged in trade or business in the Philippines: 20% of dividends received

Non-resident alien individual not engaged in trade or business in the Philippines: 25% of dividends received

Non-resident foreign corporation: 30% of dividends received

 

2011 Share ownership thresholds (%)

Listed companies are required to maintain a 10% minimum public float effective November 30, 2010[1]




[1] Per Memo for Brokers No. 2010-0505

Short selling (Yes / No)

No

Short selling conditions (if any)

NA

 

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This page was last updated on: 11/18/2013 - 11:05