PSE lifts trading restrictions on Golden Tower

The Philippine Stock Exchange (PSE) has lifted the trading restrictions imposed on stockbrokerage Golden Tower Securities & Holdings Inc. following its compliance with the rules and directives of the local bourse.

In a statement, the PSE said Golden Tower can now resume regular trading after it rectified its violation of the rules on short selling.

Short selling refers to the sale of a security that is not owned by the seller but that is promised to be delivered. It is a trading strategy that aims to capitalize on an anticipated decline in the price of a stock.

“We are pleased to inform the public that Golden Tower has resolved the audit findings, including a 100 percent buyback of its short position. Golden Tower has taken immediate measures to address company issues, which I think should put to rest any cause of alarm among its investors,” said PSE president and chief executive officer Francis Lim.

The PSE, however, has reminded Golden Tower to diligently observe relevant provisions of the Securities Regulation Code, its implementing rules and regulations and PSE rules governing trading participants to avoid a repeat of this violation.

Kenneth Lao, owner of Golden Tower, explained that the violation committed by one of its salesmen was an isolated case that involved only one account.

Lao assured investors that Golden Tower does not tolerate any malpractice or misconduct by its employees and agents and has, in fact, imposed sanctions against the erring salesman.

Lao said the company welcomes any inquiries or concerns with respect to its operations and has promised to act upon any violations immediately.

Golden Tower was imposed a P50,000 fine by the PSE for having sold P12.96 million worth of stocks it did not own as of Aug. 21 in violation of the SRC.

Meanwhile, the PSE is still waiting for HK Securities Inc. to fulfill its promise to infuse at least the equivalent of $1 million and remit $150,000 by Sept. 19, 2008 to cure its short security position.

PSE has earlier imposed trade restrictions on HK Securities based on the Market Regulatory Department’s findings that the company had short security position and misstated its cash balance.

The failure of HK Securities to infuse the requirement amounts within the agreed period will result in the immediate suspension of its operations and the takeover by securities regulators of its operations to ensure the protection of the investing public.     — Zinnia dela Peña