THE SECURITIES REGULATION CODE OF THE PHILIPPINES

Commission (SEC) or the commission with regard to the regulation of the

securities in the Philippines.

For investors, equity securities like shares of stock of a corporation and debt
securities like bonds, banknotes, and debentures can be good investing
opportunities to earn profit and increase their wealth. For companies, those
securities can be used to encourage more injection of money or capital into their
businesses. And for our government, the trading of securities in the market
requires regulation that will ensure the protection of everyone who participates
on it. That is why Republic Act No. 8799, known as The Securities Regulation
Code of the Philippines was enacted and approved on July 19, 2000.

The requirements and procedures in the registration of securities in the

Philippines are discussed in Chapter three of the code. Remember that,
generally, securities should not be sold or offered for sale or distribution within
the Philippines, without a registration statement duly filed with and approved by
the Commission, except however for the classes of securities enumerated in
Section 9.1 of the code and the exempt transactions enumerated in Section 10.1
of the code, as amended.

The purposes of the Securities Regulation Code

According to Section 2 of the Securities Regulation Code of the Philippines, this
law was enacted for the following purposes:
1. To establish a socially conscious, free market that regulates itself
2. To encourage the widest participation of ownership in enterprises
3. To enhance the democratization of wealth
4. To promote the development of the capital market
5. To protect investors
6. To ensure full and fair disclosure about securities
7. To minimize if not totally eliminate insider trading and other fraudulent or
manipulative devices and practices which create distortions in the free market.

Some highlights of the law

The Securities Regulation Code of the Philippines has 78 sections which are
categorized into 13 chapters. In chapter one, the Act gives definitions on some
of the terms related to securities, including securities themselves. In chapter
two, the Act outlines the powers and functions of the Securities and Exchange

As a regulation, the code sets out reportorial requirements (including financial

statements) for issuers of securities listed in Section 17.2 of the code, as
amended. Measures to protect investors, prohibit fraud, regulate securities
professionals, and to ensure that the Philippine securities market system is
effective and in order, are included in the Act. Check out the following outline of
the Philippine Securities Regulation Code. You may also get the copy of the full
text or PDF file of the code below.
Outline of the Securities Regulation Code
Chapter I Title and Definitions
Chapter II Securities and Exchange Commission
Chapter III Registration of Securities
Chapter IV Regulation of Pre-Need Plans
Chapter V Reportorial Requirements
Chapter VI Protection of Shareholder Interests
Chapter VII Prohibitions on Fraud, Manipulation and Insider Trading
Chapter VIII Regulation of Securities Market Professionals
Chapter IX Exchanges and Other Securities Trading Markets
Chapter X Registration, Responsibilities and Oversight of Self-Regulatory
Organizations
Chapter XI Acquisition and Transfer of Securities and Settlement of
Transactions in Securities
Chapter XII Margin and Credit
Chapter XIII General Provisions