The Philippines' securities commission has yet to approve the rules on listing of exchange-traded funds.
This was confirmed by the commissioner of the Securities and Exchange Commission, Ma. Juanita E. Cueto.
Late last month, the Philippine Stock Exchange (PSE) submitted to the SEC its proposed rules that will govern the listing and trading of ETFs after it gathered public comments.
At least three firms, First Metro Investment Corp. of the Metrobank Group, Sy-led BDO Unibank Inc. and Bank of the Philippine Islands of the Ayala conglomerate have expressed plans to offer ETFs.
The proposed ETF listing rules, which is governed by the general ETF guidelines issued by the SEC in October, provides for transparency and investor safeguards that adhere to the International Organization of Securities Commissions and best practices in other jurisdictions.
Prior to listing in the local bourse, minimum paid-up capital for ETFs should be P250 million.
ETFs will be exempt from the listing requirement that new offerings should allot 20 percent of the shares for trading participants and 10 percent mandatory allocation for local small investors.
The lock-up and track record requirements in the listing rules shall not apply to facilitate the listing of ETFs.
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