MANILA, Philippines - A subsidiary of the Philippine Stock Exchange (PSE) can now operate as a holder of securities.
In a disclosure, the PSE said the Securities and Exchange Commission (SEC) has granted a provisional license to the Securities Clearing Corp. of the Philippines (SSCP) to operate as a securities depository.
“SCCP was directed to comply with the conditions imposed on the grant of the provisional license within the deadlines prescribed by the SEC,†the PSE said.
SCCP is a private firm organized primarily as a clearance and settlement agency for depository eligible trades executed in the local stock exchange.
As a securities depository, the company can hold securities for all financial institutions in the local bourse prior to the certificates being transferred to the owner or to another party. It can also process the settlement of share transactions.
In October, PSE applied for the SCCP to secure a license to operate as a securities depository.
SCCP proposed a multi-depository framework, which will allow several entities to perform depository functions in the same market.
“The trading, clearing, and settlement process under the multiple depository model will essentially be the same as the existing process flow, except that under the proposed model, trading participants holding securities lodged in different depositories must apply as depository participants of all such depositories,†SCCP said.
Meanwhile, the PSE is holding an international roadshow to encourage foreign investors to pick local stocks.
PSE, in partnership with DBP-Daiwa Capital Markets Philippines Inc., is conducting the Philippine Corporate Day on Feb. 14-15 in Tokyo, Japan.