THE SECURITIES and Exchange Commission (SEC) is ramping up reforms to address long-standing liquidity constraints in the Philippine capital market as it seeks to close the gap with regional peers, Chairman Francisco Ed. Lim said.
Speaking at the European Chamber of Commerce of the Philippines’ Philippine Economic Outlook conference on Thursday last week, Mr. Lim said the Philippine capital market continues to lag behind many ASEAN (Association of Southeast Asian Nations) countries in terms of size, liquidity, and the breadth of investment products.
“We view this challenge as a chance to demonstrate that integrity and decisiveness can turn adversity into strength. Our goal is nothing less than to make the SEC a beacon of certainty and trust, one of the brightest forces powering our economy in the new world, based on ease of doing business and regulatory efficiency,” he said.
To help narrow the gap, Mr. Lim said the commission is pursuing reforms that strengthen regulatory certainty and accelerate decision-making.
This year, the SEC rolled out stricter service standards, faster decision-making timelines, and an automatic approval mechanism that activates when submissions remain unaddressed beyond prescribed periods. The commission’s standard 45-day review period for public offerings and the application of “deemed-approved” policies are expected to support this shift, he said.
“For foreign companies, this means less paperwork, less downtime, and far greater flexibility to align your corporate structures with global group standards. It is a modern regulation for modern business. All these reforms are guided by a simple principle: regulation should enable, not obstruct foreign investments,” Mr. Lim said.
Other reforms include clarifying exempt transactions, extending shelf registration validity to five years, and proposing updates to the real estate investment trust framework to accommodate more infrastructure-related assets. The SEC said these initiatives are intended to help more Philippine companies qualify for inclusion in global indexes.
Efforts to address liquidity constraints also include increasing securities supply, enhancing market-making programs, refining pricing mechanisms, and reviewing securities lending, short-selling, and repo market participation.
“The reforms we are implementing today — deeper liquidity mechanisms, more flexible capital-raising frameworks, stronger sustainability standards, and broader investor participation — are all designed precisely to narrow that gap and position the Philippines as a more competitive and investment-ready market in the region,” he added. — A.G.C. Magno
