Latest Stories

PSE raises ante for equities depository

MANILA, Philippines—The Philippine Stock Exchange plans to build up the authorized capital base of wholly owned clearinghouse subsidiary Securities Clearing Corp. of the Philippines (SCCP) to P500 million as the latter is set to take on additional responsibility as an equities depository.

The boards of both PSE and SCCP recently approved the increase in the latter’s capital stock, currently at P125 million. Of the P375 million capital hike, the PSE will subscribe to an additional P156 million, thereby accounting for a total of P250 million subscribed capital stock of SCCP, the exchange said in a disclosure.

“PSE will pay an additional P106 million bringing SCCP’s total paid-up capital to P200 million to support SCCP’s depository operation,” the PSE said.

The increase in capital stock and the corresponding amendment in the bylaws will be ratified in the annual stockholders’ meeting of SCCP this year, it added.

The Securities and Exchange Commission recently granted the SCCP a provisional license to operate a securities depository, subject to the fulfillment of certain conditions and other requirements, including an increase in capital.

The SCCP’s planned operation of its own securities depository signals a break from the depository platform of the Philippine Dealing System (PDS) Group, which currently handles both equities and fixed income depository through Philippine Depository & Trust Corp. (PDTC).

PSE president Hans Sicat said SCCP’s adoption of a depository function would help promote efficiencies in the market. “Systemic risks can also be further minimized when the backroom processes for equities trading are consolidated within the PSE,” he said.

But PDS vehemently opposed the creation of a separate depository platform for equities. “We believe a multidepository model that specifies the issuer as the designated entity which chooses the depository for a particular security gravely compromises investor protection and, to a great degree, presents conflict of interest between the issuer and the depository,” PDS said in a briefer.

“A depository exercises fiduciary responsibilities on behalf of the investor (or its agent) for shares which it needs to exercise pre- and post-settlement. The choice of the depository cannot be relegated to anyone other than the investor or its proper agent without compromising the relationship between the investor and the depository. Having contemplated the pre-eminence of the public good specifically of the investors-at-large, which the regulating authority should protect, a multidepository framework that is issuer-centric may endanger and render moot the governance pursuits of a free, transparent and orderly capital markets.”

The PSE, on the other hand, has already secured the support of market players and business leaders on its plan to set up a separate securities depository under SCCP.—Doris C. Dumlao

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: capital base , equities , Markets and Exchanges , Philippine Stock Exchange , Philippines , Securities Clearing Corp. of the Philippines

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Pakistan library named ‘bin Laden,’ as memory fades
  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Filipinos, Dutch re-enact crucifixion of Christ
  • Sports

  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Multicultural flock marks Good Friday in San Francisco
  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • Marketplace