The Philippine Stock Exchange (PSE) will review the listing rules for its second and small and medium enterprises (SME) boards, a bourse exec has said.
“We are proceeding with a review of our listing rules to enhance the safeguards for the investing public. We are aligning and updating our rules with the times which we believe will be beneficial in the long-run for both the companies wishing to list on these boards and the market. One of the options we are looking at is consolidating both Second and SME Boards to enhance the investment protection features,” PSE chief operating officer Roel Refran said.
The PSE announced that it will temporarily defer the processing of initial listing applications under the Second and SME Boards while it is reviewing the rules.
The listing rules for the Second and SME Boards were issued to enable small to mid-cap companies which demonstrate a potential for growth, to tap the capital markets.
The rules applied to the First Board consisting of large capitalized companies and provide stringent track record and profitability requirements while the rules for Second and SME Boards provide a longer lock-up period and require additional progress and risks reports in line with the companies’ business plans and prospects.
“In the event the PSE review leads to possible amendments to existing rules, we will be submitting this to the public for comments and to the Securities and Exchange Commission for final approval,” Refran said.