The Securities and Exchange Commission (SEC) will investigate the possible insider trading of PLDT Inc. shares amid a sell-off of company stocks before the telco giant announced the initial results of an internal audit revealing P48 billion in overspending over several years.
The corporate regulator said in a statement on Monday the capital budget overspending and unusual trading activity before the official disclosure was released “are areas of concern for the commission, being the regulator of the securities market and the champion of investor protection in the country.”
“In this light, the SEC has immediately commenced an inquiry into the matter,” it added.
PLDT shares fell 4.5 percent on Friday due to a sell-off during the last few minutes of trading. An hour later, the telco giant announced plans for a management shakeup amid the discovery of P48 billion in overspending that goes back four years.
Insider trading occurs when individuals profit from buying and selling stocks using nonpublic information.