The Securities and Exchange Commission (SEC) ordered an investigation of possible insider trading related to PLDT Inc.’s disclosure of a P48- billion “budget overrun” covering several years.
“The reported ‘budget overruns’, as well as the selloff in PLDT shares before the publicly listed company could make the official disclosure, are areas of concern for the Commission, being the regulator of the securities market and the champion of investor protection in the country,” the corporate regulator said in a statement on Monday.
“In this light, the SEC has immediately commenced an inquiry into the matter,” it added.
The SEC said it has ordered PLDT to further clarify the matter.
It also directed the Philippine Stock Exchange and the exchange’s independent audit and surveillance arm, Capital Markets Integrity Corp., to submit “initial reports on their investigation into the trading activities that have resulted in the sudden and sharp decline in the share prices of PLDT before the official disclosure of the ‘budget overruns’, among others.”
“The SEC, through its Markets and Securities Regulation Department, will closely monitor the investigation and will continue to conduct a parallel, independent inquiry into the matter to safeguard the interest of the investing public,” the corporate regulator said.