THE Philippine Stock Exchange (PSE) has released a set of disclosure requirements and sanctions for listed companies in line with the revival of the minimum public ownership rule. This follows as the organization in February approved a rule that the public must hold at least 10% of a company’s issued and outstanding shares at any given time if it wants to remain listed on the exchange. If the public ownership level drops below the required minimum, the company should immediately make a disclosure to the PSE and “take steps to ensure compliance at the earlier possible time.”

Listed companies have an 18-month grace period to comply with the rule, with suspension or delisting procedures to be initiated against those that do not comply within a specified period.

Specifically, the PSE will take action if the company has a shortfall of less or equal to half of the prescribed minimum 10% for more than five years after the 18-month grace period, or when the shortfall is more than half of the minimum for more than four years after the grace period. The PSE also requires listed companies to include their public ownership or public float level in their annual reports, as well as a separate report within 15 trading days after the end of every quarter.

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