THE SECURITIES and Exchange Commission (SEC) is set to release guidelines that would expand fundraising and investment opportunities in Philippine capital markets, it said in a statement on Wednesday.
“The SEC is preparing new guidelines that will expand fundraising and investment opportunities in the Philippine capital market and, at the same time, strengthen the protection of investors and other financial consumers,” it said.
Last year the corporate regulator issued draft guidelines on the issuance and disclosure of Sukuk bonds and defining seasoned issuers and the extension of shelf registration.
The SEC also released proposed changes to the rules covering registrars of qualified institutional and individual buyers, cryptocurrency asset service providers and the so-called Philippine Green Equity.
On Dec. 26, it proposed rules on the issuance and disclosure of Sukuk bonds.
One of the provisions in the proposed guidelines is that eligible issuers of Sukuk bonds include the National Government, special purpose vehicles (SPV) created for sukuk issuance and publicly listed companies through an SPV.
“The guidelines seek to further the administration’s agenda to promote the development of Islamic banking and finance in the country and to create the opportunity for other Philippine issuers to access the sukuk market in the future,” the SEC said.
Sukuk bonds are Islamic financial certificates, similar to a bond in Western finance, that comply with Islamic religious law commonly known as Shari’ah.
The issuances should adhere to Islamic principles and must be structured to prohibit elements such as interest, uncertainty and investments in businesses that deal with prohibited goods or services.
The SEC also issued draft rules on seasoned issuers and shelf registration on Dec. 26. The rules seek to update the definition of terms to include the seasoned issuer, which means any issuer designated by the commission as having demonstrated its compliance with requirements on size, listing history and track record.
The draft also covers the extension of shelf registration granted to seasoned issuers, allowing them to extend the offering period for additional tranches of securities beyond the original three-year period.
The SEC also released draft guidelines for Philippine green equity, which is a complement to sustainable debt instruments. The green equity label expands the range of sustainable investment products in the market.
Meanwhile, the regulator also issued rules on cryptocurrency asset service providers to improve investor protection.
The commission also issued draft rules on qualified institutional and individual buyers. The rules reinforce the SEC’s authority to verify the procedures of authorized registrars in accrediting qualified buyers.
Public comments for the guidelines on Sukuk bonds and seasoned issuers and the extension of shelf registration will be accepted until Jan. 26, while public comments on Philippine green equity will be open until Jan. 25.
The SEC will accept public comments on the guidelines for crypto asset providers until Jan. 18, while comments on the rules on qualified institutional buyers will be entertained until Jan. 10. — Revin Mikhael D. Ochave
