SEC Implements Timelines and Discounts to Stimulate Capital Market Growth

Strategic Insights -

The Securities and Exchange Commission (SEC) in Manila has introduced a series of measures to boost the Philippine capital market, including strict timelines and discounts for companies conducting public offerings. As part of this effort, Memorandum Circular 9, Series of 2025, has streamlined the evaluation and approval process for registration statements, integrating clearance processes across departments within a 45-day processing timeline. Additionally, companies are eligible for a 30-percent discount on registration fees until December 31, 2025. The goal is to increase market participation and bring it up to par with Southeast Asian peers, enabling businesses to tap diverse financing options and unlock their full growth potential.

Key Takeaways:

  • The SEC has implemented a 45-day review timeline for registration statement applications, which includes clearance processes across departments.
  • Companies are eligible for a 30-percent discount on registration fees until December 31, 2025, as part of the SEC's efforts to stimulate the capital market.
  • Memorandum Circular 9, Series of 2025, aims to streamline the evaluation and approval process for registration statements, integrating clearance processes across departments.
  • The SEC Office of the General Accountant will conduct a detailed review of the applicant's financial statements within 30 days, which should be completed within the 45-day review timeframe.
  • Companies must address comments and deficiencies within 20 calendar days to avoid denial of the application and forfeiture of registration fees.
  • The applicant's failure to comply with comments by an operating department may also be considered in denying the application.
  • The SEC chairperson Francis Lim emphasized the goal of increasing market participation to bring it up to par with Southeast Asian peers.

Statistics:

  • 45-day review timeline for registration statement applications
  • 30% discount on registration fees for companies until December 31, 2025
  • 30 days for the SEC Office of the General Accountant to conduct a detailed review of the applicant's financial statements
  • 20 calendar days for companies to address comments and deficiencies
  • 5 working days for operating departments to process requests for clearances
  • 15 calendar days for the SEC Office of the Markets and Securities Regulation Department (MSRD) to issue a comment letter outlining findings and issues

Sources:

  • Memorandum Circular 9, Series of 2025, Securities and Exchange Commission (SEC)