PSE plans to unify second, SME boards

The Philippine Stock Exchange is considering to unify its second and small and medium enterprise (SME) boards and just offer a single platform for smaller-cap companies planning to go public.

“We are proceeding with a review of our listing rules to enhance the safeguards for the investing public. We are aligning and updating our rules with the times, which we believe will be beneficial in the long run for both the companies wishing to list on these boards and the market. One of the options we are looking at is consolidating both second and SME boards to enhance the investment-protection features,” PSE chief operating officer Roel Refran said in a press statement.

The PSE announced on Friday that it would temporarily defer the processing of initial listing applications under the second and SME boards while it was reviewing the rules.

Stock market sources said another enhancement under consideration was to require smaller-cap companies to offer only primary shares and restrict them from the issuance of secondary shares during listing. This requirement was already imposed on agricultural product distributor Calata Corp., the last company to list on the second board last May 23, even when no such prohibition existed in the current rules.

“In the event the PSE review leads to possible amendments to existing rules, we will be submitting this to the public for comments and to the Securities and Exchange Commission for final approval,” Refran said.