Role of Securities and

Exchange Commission at
the Philippine Stock
Exchange
CHAPTER 7
BUSINESS FINANCE (PHILIPPINE ENVIRONMENT)
Brief History of SEC
was formed in 1936
to safeguard public interest
absolute jurisdiction, supervision, and control over all corporations,
partnerships and association
administering and implementing such laws as the Corporation Code, The
Securities Regulation Code, Investment Houses Law, the Financing Company Act,
and the Investment Company Act
collegial body composed of a chairperson and four associate commissioners
Their duties include assignment on a rational basis to supervise the various
departments of the Commission.
The SEC after the Reorganization Brought About by
the Passage of the Securities and Regulation Code

Vision/Mission Statement
◦ Vision
◦ As an independent and credible regulator adhering to national standards, its vision is to be a
prime mover of Philippine economic development by ensuring a fair, efficient and transparent
capital market.

◦ Mission
◦ It shall actively promote the development of a globally competitive Philippine capital market,
effectively regulate and monitor its operations, and widely disseminate reliable information for
the protection of the investing public.
Four Core Functions of the
Commission
1. Capital Market Development and Regulation

2. Company Registration and Monitoring

3. Enforcement

4. Support Services
 NEW SEC ORGANIZATION
CHART
(as of December 2001)
CHAIRPERSON

COMMISSIONER COMMISSIONER COMMISSIONER COMMISSIONER

Office of the GENERAL Office of the GENERAL

ACCOUNTANT ACCOUNTANT

CAPITAL MARKETS COMPANY ENFORCEMENT SUPPORT SERVICES

REGISTRATION

Market Corporation Nontraditional Company Compliance and Economic Financial

Human
Regulation Finance Securities & Registration and Enforcement Research & Management
Resource &
Department Department Instruments Monitoring Department Information Department
Administrative
Department Department Department Department
Extension Office
SEC Rules Affecting Stock Exchange or SRC Rules

 SRC Rule 3 - Definition of Terms Used in the Rules and Regulations

 Commission
 Code
 Section
 Beneficial owner or Beneficial ownership
 Material Information
 Control, Controlling, controlled by, and under common control with
 Member of an Exchange
 Transfer Agent
 Public Company
 Self-regulatory Organization or SRO
 Rules and Regulations
SEC Rules Affecting Stock Exchange or SRC Rules
 SCR Rule 3.1-1 – Definition of Investment Contract and Derivatives
An Investment Contract
Derivatives

 SRC Rule 3.3-1 – Definition of Broker/Dealer

Broker/Dealer

 SRC Rule 3.6 – Definition of Clearing agency

Clearing agency

 SRC Rule 3.7.1 – Definition of Facility of an Exchange

Facility of an Exchange