The PSE cited trading participants accounted for a 26.44-percent stake as of last month, equivalent to 85 million shares. They previously declared in January that this had been lowered below 20 percent as said on Monday.
The bourse stated the outcome trailed mandatory submissions of sworn shareholding certifications.
These showed that approximately 7.26 percent of the PSE’s outstanding shares — inclusive of 3.38 percent purchased during a follow-on offering last year — was held by brokers’ principal shareholders and related parties in omnibus client accounts, which were not encompassed in brokers’ propriety accounts and thus not registered in broker ownership reports.
“The Exchange is putting together a compliance plan to further bring down broker ownership to the level required by law,” the PSE stated.
“In the meantime, brokers are being prohibited from buying PSE shares for their proprietary account, the account of their related parties, and the principal account of other broker dealers, pursuant to the SEC Rules Governing Trading of PSE Shares,” the bourse added.
The PSE publicized in January that it was adopting measures to maintain broker ownership at not more than 20 percent. It included real-time monitoring via the trading system and the amendment of rules governing trading rights and brokerage firms.
Trading participants were also obligated to update the customer account information forms of clients as well as submit monthly certifications of brokers’ related person accounts with corresponding PSE shareholdings.
PSE said its trading system was configured to automatically thwart purchases of PSE shares if the 20-percent limit would be breached.
As prescribed by SEC rules governing trading of PSE shares, accounts to be observed include those held by brokers’ subsidiaries and affiliates, directors, officers, principal stockholders, nominees to the PSE and spouses and relatives up to the fourth civil degree of consanguinity or affinity.
The PSE as well proposed penalties such as P100,000 for the first offense, P200,000 for the second offense and P300,000 for the third offense on top of the suspension of trading operations for five days.