DDS in relation to Corporation Code’s capital provisions

By Dan Bernard S. Sabilala, ACCRA Law Offices
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The Philippine Stock Exchange (PSE) issued on 2 December 2016 the Rules on Dollar Denominated Securities (DDS rules) which govern the listing, trading and settlement of US dollar denominated Securities (DDS) to be listed and traded in the PSE. The DDS rules were earlier approved by the Securities and Exchange Commission (SEC), on 10 November 2016.

The introduction of DDS aims to provide issuers and investors with more instruments to meet their specific requirements. It can provide issuers with the US dollar (USD) denominated funding requirements and the opportunity to raise capital at the PSE without incurring any foreign exchange risks. In the same manner, the product can also reduce the foreign currency risk exposure of foreign investors who trade on PSE-listed securities. In addition, DDS offer local investors an alternative investment option for their USD currency holdings.

Dan Bernard S. Sabilala Associate ACCRA Law Offices
Dan Bernard S. Sabilala
Associate
ACCRA Law Offices

The DDS rules must apply only to existing listed companies that will issue DDS. To be eligible, an issuer must be in good standing with the PSE. An issuer is deemed to be in good standing if, at the time of submission of its listing application, it does not have any outstanding penalties or other liabilities to the PSE, is not the subject of any order or suspension from trading or any involuntary delisting proceedings, and is not the subject of any pending case, investigation or similar proceeding by the PSE for violation of any applicable laws, rules, regulations or orders. The above-mentioned criteria are illustrative only and the PSE may take into consideration any other material factors, events, circumstances and other related matters that negatively impact the issuer.

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DAN BERNARD S. SABILALA is an associate in the corporate and special projects department at ACCRA Law Offices

accralaw

ACCRA Law Offices

Manila office: ACCRALAW Tower, 2nd Avenue corner
30th Street, Crescent Park West, Bonifacio Global City

1635, Taguig City, Metro Manila, Philippines

www.accralaw.com

Contact details:

Tel: +632 830 8000

Email: dssabilala@accralaw.com

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