SEC offers 30% discount on public offering fees until yearend

THE Securities and Exchange Commission (SEC) said it is offering discounted registration fees to companies conducting public offerings until the end of the year to encourage greater participation in the capital market.

The corporate regulator said in Memorandum Circular (MC) No. 9 issued Thursday that all registration statement applications submitted until Dec. 31 will be entitled to a 30% discount on assessed registration fees.

MC No. 9 also streamlines the evaluation and approval process for registration statements by integrating the clearance processes across the SEC’s departments within the 45-day processing timeline under the Securities Regulation Code.

The 45-day calendar period will begin from the date the Markets and Securities Regulation Department receives proof of payment for the first tranche of the registration fee and full payment of clearance-related fees.

The guidelines cover all registration statement applications of firms looking to do initial public offerings or follow-on offerings, as well as those issuing investment contracts, certificates of participation, profit-sharing agreements, bonds, and debt securities.

Also covered are other forms of securities being registered by power generation companies, distribution utility companies, real estate developers, and managers in relation to rental pool arrangements.

Agri-business corporations and hospitals, which are subject to a 28-day processing period, are excluded from the 45-day review timeline.

“Our goal for the Philippine capital market is clear — increase market participation to bring it up to par with our peers in the Southeast Asian region,” SEC Chairperson Francisco Ed. Lim said in a statement.

“The SEC will streamline processes and provide discounts or incentives where possible, in order to encourage more businesses to tap into the capital market, enabling them to unlock their full growth potential through diverse financing options,” he added. — Revin Mikhael D. Ochave