Under the PSE’s revised disclosure rules, issuers must disclose to the exchange the direct and indirect ownership of its directors and principal officers in its securities within two days from acquisition.
The PSE board, upon recommendation of the Listings and Disclosure Group, approved to amend the deadline to extend the period to five trading days to allow issuers to seasonably comply with the rule.
In making the said recommendation, the PSE unit took into account comments given by listed companies, as some of the issuers have commissioned their transfer agents to take charge in submitting the necessary disclosures to the exchange. However, the transfer agents would get to know of the transaction only on the third day or when the trade is cleared.
The rationale of the disclosure requirement was to allow the PSE to effectively monitor compliance by directors and officers to the rule, otherwise known as the blackout rule.
The prompt disclosure to the market of said information by the issuer of the transactions of its directors and officers would make their dealings more transparent, and help curb unfair trade practices such as insider trading and market manipulation.