SEC fines PSE P100,000 for Benguet Corp sanction

MANILA, Philippines - The Philippine Stock Exchange (PSE) was slapped with a P100,000 fine by the Securities and Exchange Commission for its failure to allegedly inform the corporate watchdog of its sanction against an erring listed company.

The PSE was fined for late notification of the sanction it imposed against Benguet Corp. for failure to comply with the disclosure rules.

Aside from this, the PSE was directed to pay penalty for continued violation of the rule on 20 percent industry ownership limit from 2006 to 2009.  A P100,000 fine is imposed for each year of violation.

The PSE said it would seek the reconsideration of the SEC on the imposed penalties. It had five days from June 11 to pay the fines.

It would be recalled that the Philippine Association of Securities Brokers and Dealers Inc. (PASBDI) has gone to court to enjoin the SEC from enforcing a rule that would require the PSE to limit starting this year, and every year thereafter, the voting rights of brokers to 20 percent.

Under the Securities Regulation Code the voting rights of any industry group over the PSE cannot exceed 20 percent.