I. Makati Stock Exchange, Inc. vs.

Securities and Exchange Commission and Manila Stock

Exchange
G.R. No. L-23004; June 30, 1965
Bengzon, C. J.

Facts:
Makati Exchange Commission (MakEC) filed a review on the resolution issued by the SEC
denying them to operate a stock exchange because the list of securities on its trading board is already
listed in the Manila Stock Exchange (ManEC).
MakEC argued that the Commission has no power to impose it because it is illegal,
discriminatory and unjust.
Under the law, a stock exchange should be registered with the SEC in order to operate in the
Philippines, the Commission may permit the registration upon completion of requirements required by
the law.
MakEC is challenging the rule against double listing which states that “… nor shall a security
already listed in any securities exchange be listed anew in any other securities exchange… .”
MakEC objection on that rules dwells on the fact that ManEc has the monopoly of the trading
securities, it has been operating for 25 years and that almost all trading securities is listed there leaving
MakEC with only other remaining securities, thus making it impossible for MakEC to operate.

Issue:
Whether or not the Commission has authority to promulgate and implement rules prohibiting
another exchange to operate on the ground that it is of the protection of “public interest”.

Ruling:
Making reasonable allowances for the presumption of regularity and validity of administrative
action, the curt felt constrained to reach the conclusion that the respondent Commission possesses no
power to impose the condition of the rule, which, additionally, results in discrimination and violation of
constitutional rights.
ACCORDINGLY, the license of the petition to operate a stock exchange is approved without
such condition. Costs shall be paid by the Manila Stock Exchange. So ordered.