The Securities and Exchange Commission has approved the proposal of the PSE for new listing framework easing the requirements for firms to go public.
According to the report the local stock market is at the bottom of the pit when it comes to listing activities. The easing of the listing rules aims to attract private companies particularly small and medium enterprises (SMEs) to go public and list at the stock market.
SEC Chairman Emilio Aquino said that the SEC approved the amended listing rules to bring down the profitability and track record requirement.
The easing of the listing requirements would now encourage more firms to apply directly for a listing and skip the backdoor. According to a BusinessWorld report, the PSE wants to prohibit backdoor listing for companies that are listed on the SME board.
The new listing rules could halt the shell company rally. Recently, companies such as LODE and AR have rallied and dominated the local stock trading scene.
This analysis is an independent viewpoint on publicly traded stocks in the Philippine market. Accuretti Systems Inc. trades stocks in the Philippine market.
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