RA 08799 Securities Regulation Code

8/13/2019 RA 08799 Securities Regulation Code

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REPUBLIC ACT NO. 8799

THE SECURITIES REGULATION CODE

CHAPTER ITitle and Definitions

SECTION 1. Title. This shall be known as The Securities Regulation Code.

SEC. 2.Declaration of State Policy. The State shall establish a soiall! onsio"s# f$ee

%a$ket that $e&"lates itself# eno"$a&e the widest 'a$tii'ation of owne$shi' inente$'$ises# enhane the de%o$ati(ation of wealth# '$o%ote the de)elo'%ent of the

a'ital %a$ket# '$otet in)esto$s# ens"$e f"ll and fai$ dislos"$e abo"t se"$ities# %ini%i(e

if not totall! eli%inate inside$ t$adin& and othe$ f$a"d"lent o$ %ani'"lati)e de)ies and'$aties whih $eate disto$tions in the f$ee %a$ket.

To ahie)e these ends# this Se"$ities Re&"lation Code is he$eb! enated.

SEC. *.Definition of Terms.

*.1. +Securities, a$e sha$es# 'a$tii'ation o$ inte$ests in a o$'o$ation o$ in a o%%e$ialente$'$ise o$ '$ofit-%akin& )ent"$e and e)idened b! a e$tifiate# ont$at# inst$"%ent#

whethe$ w$itten o$ elet$oni in ha$ate$. It inl"des/a0 Sha$es of stok# bonds# debent"$es# notes# e)idenes of indebtedness# asset-

baked se"$ities

/b0 In)est%ent ont$ats# e$tifiates of inte$est o$ 'a$tii'ation in a '$ofit sha$in&

a&$ee%ent# e$tifiates of de'osit fo$ a f"t"$e s"bs$i'tion

/0 $ational "ndi)ided inte$ests in oil# &as o$ othe$ %ine$al $i&hts

/d0 De$i)ati)es like o'tion and wa$$ants

/e0 Ce$tifiates of assi&n%ents# e$tifiates of 'a$tii'ation# t$"st e$tifiates#)otin& t$"st e$tifiates o$ si%ila$ inst$"%ents

/f0 P$o'$ieta$! o$ non '$o'$ieta$! %e%be$shi' e$tifiates ino$'o$ations and

/&0 Othe$ inst$"%ents as %a! in the f"t"$e be dete$%ined b! the Co%%ission.

*.2 +Issuer, is the o$i&inato$# %ake$# obli&o$# o$ $eato$ of the se"$it!.

*.* +Broker, is a 'e$son en&a&ed in the b"siness of b"!in& and sellin& se"$ities fo$ theao"nt of othe$s. chan robles virtual la librar!


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*.3 +Dealer, %eans an! 'e$son who b"!s and sells se"$ities fo$ his4he$ own ao"nt in

the o$dina$! o"$se of b"siness.

*.5. +Associated erson of a !roker or dealer, is an e%'lo!ee the$eof who# di$etl!

e6e$ises ont$ol of s"'e$)iso$! a"tho$it!# b"t does not inl"de a sales%an# o$ an a&ent o$a 'e$son whose f"ntions a$e solel! le$ial o$ %iniste$ial.

*.7. +Clearing Agency, is an! 'e$son who ats as inte$%edia$! in %akin& deli)e$ies "'on

'a!%ent to effet settle%ent in se"$ities t$ansations.

*.8. "#change is an o$&ani(ed %a$ket'lae o$ failit! that b$in&s to&ethe$ b"!e$s and

selle$s and e6e"tes t$ades of se"$ities and4o$ o%%odities.

*.9. +Insider, %eans /a0 the iss"e$ /b0 a di$eto$ o$ offie$ /o$ 'e$son 'e$fo$%in& si%ila$f"ntions0 of# o$ a 'e$son ont$ollin& the iss"e$ /0 a 'e$son whose $elationshi' o$ fo$%e$

$elationshi' to the iss"e$ &i)es o$ &a)e hi% aess to %ate$ial info$%ation abo"t theiss"e$ o$ the se"$it! that is not &ene$all! a)ailable to the '"bli /d0 a &o)e$n%ent

e%'lo!ee# o$ di$eto$# o$ offie$ of an e6han&e# lea$in& a&en! and4o$ self-$e&"lato$!o$&ani(ation who has aess to %ate$ial info$%ation abo"t an iss"e$ o$ a se"$it! that is

not &ene$all! a)ailable to the '"bli o$ /e0 a 'e$son who lea$ns s"h info$%ation b! a

o%%"niation f$o% an! of the fo$e&oin& inside$s.

*.:. +Pre$%eed Plans, a$e ont$ats whih '$o)ide fo$ the 'e$fo$%ane of f"t"$e se$)ieso$ the 'a!%ent of f"t"$e %oneta$! onside$ations at the ti%e of at"al need# fo$ whih

'lanholde$s 'a! in ash o$ install%ent at stated '$ies# with o$ witho"t inte$est o$

ins"$ane o)e$a&e and inl"des life# 'ension# ed"ation# inte$%ent# and othe$ 'lans

whih the Co%%ission %a! f$o% ti%e to ti%e a''$o)e.

*.1;. +Promoter, is a 'e$son who# atin& alone o$ with othe$s# takes initiati)e in fo"ndin&

and o$&ani(in& the b"siness o$ ente$'$ise of the iss"e$ and $eei)es onside$ationthe$efo$.

*.11. +Prosectus, is the do"%ent %ade b! o$ on behalf of an iss"e$# "nde$w$ite$ o$

deale$ to sell o$ offe$ se"$ities fo$ sale to the '"bli th$o"&h a $e&ist$ation state%ent filed

with the Co%%ission.

*.12. +Registration statement, is the a''liation fo$ the $e&ist$ation of se"$ities $e


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*.15. +&nder'riter, is a 'e$son who &"a$antees on a fi$% o%%it%ent and4o$ dela$ed

best effo$t basis the dist$ib"tion and sale of se"$ities of an! kind b! anothe$ o%'an!.

CHAPTER II

Se"$ities and E6han&e Co%%issionSEC. 3.Administrati(e Agency.

3.1. This Code shall be ad%iniste$ed b! the Se"$ities and E6han&e Co%%ission

/he$eafte$ the Commission0 as a olle&ial bod!# o%'osed of a Chai$'e$son and fo"$/30 Co%%issione$s# a''ointed b! the P$esident fo$ a te$% of se)en /80 !ea$s eah and

who shall se$)e as s"h "ntil thei$ s"esso$ shall ha)e been a''ointed and


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the Co%%ission e6e't its $e)iew o$ a''ellate a"tho$it! and its 'owe$ to ado't# alte$ and

s"''le%ent an! $"le o$ $e&"lation.

The Co%%ission %a! $e)iew "'on its own initiati)e o$ "'on the 'etition of an!inte$ested 'a$t! an! ation of an! de'a$t%ent o$ offie# indi)id"al Co%%issione$# o$ staff

%e%be$ of the Co%%ission.

SEC. 5. Po'ers and *unctions of the Commission.$ 5.1. The Co%%ission shall at with

t$ans'a$en! and shall ha)e the 'owe$s and f"ntions '$o)ided b! this Code# P$esidentialDe$ee No. :;2-A# the Co$'o$ation Code# the In)est%ent Ho"ses aw#the inanin&

Co%'an! Atand othe$ e6istin& laws. P"$s"ant the$eto the Co%%ission shall ha)e#

a%on& othe$s# the followin& 'owe$s and f"ntions/a0 Ha)e >"$isdition and s"'e$)ision o)e$ all o$'o$ations# 'a$tne$shi's o$

assoiations who a$e the &$antees of '$i%a$! f$anhises and4o$ a liense o$ 'e$%it iss"ed

b! the Bo)e$n%ent chan robles virtual la librar!

/b0 o$%"late 'oliies and $eo%%endations on iss"es one$nin& the se"$ities %a$ket#ad)ise Con&$ess and othe$ &o)e$n%ent a&enies on all as'ets of the se"$ities %a$ket

and '$o'ose le&islation and a%end%ents the$eto

/0 A''$o)e# $e>et# s"s'end# $e)oke o$ $e"$! to the in)estin& '"bli

/>0 P"nish fo$ onte%'t of the Co%%ission# both di$et and indi$et# in ao$dane with

the 'e$tinent '$o)isions of and 'enalties '$es$ibed b! the R"les of Co"$t
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/k0 Co%'el the offie$s of an! $e&iste$ed o$'o$ation o$ assoiation to all %eetin&s of

stokholde$s o$ %e%be$s the$eof "nde$ its s"'e$)ision

/l0 Iss"esu!oena duces tecum and s"%%on witnesses to a''ea$ in an! '$oeedin&s of

the Co%%ission and in a''$o'$iate ases# o$de$ the e6a%ination# sea$h and sei("$e of alldo"%ents# 'a'e$s# files and $eo$ds# ta6 $et"$ns# and books of ao"nts of an! entit! o$

'e$son "nde$ in)esti&ation as %a! be neessa$! fo$ the '$o'e$ dis'osition of the ases

befo$e it# s"b>et to the '$o)isions of e6istin& laws

/%0 S"s'end# o$ $e)oke# afte$ '$o'e$ notie and hea$in& the f$anhise o$ e$tifiate of

$e&ist$ation of o$'o$ations# 'a$tne$shi's o$ assoiations# "'on an! of the &$o"nds

'$o)ided b! law and

/n0 E6e$ise s"h othe$ 'owe$s as %a! be '$o)ided b! law as well as those whih %a! bei%'lied f$o%# o$ whih a$e neessa$! o$ inidental to the a$$!in& o"t of# the e6'$ess

'owe$s &$anted the Co%%ission to ahie)e the ob>eti)es and '"$'oses of these laws.5.2. The Co%%issions >"$isdition o)e$ all ases en"%e$ated "nde$ Setion 5 of

P$esidential De$ee No. :;2-Ais he$eb! t$ansfe$$ed to the Co"$ts of &ene$al >"$isdition

o$ the a''$o'$iate Re&ional T$ial Co"$tPro(ided# that the S"'$e%e Co"$t in the e6e$ise

of its a"tho$it! %a! desi&nate the Re&ional T$ial Co"$t b$anhes that shall e6e$ise>"$isdition o)e$ these ases. The Co%%ission shall $etain >"$isdition o)e$ 'endin& ases

in)ol)in& int$a-o$'o$ate dis'"tes s"b%itted fo$ final $esol"tion whih sho"ld be $esol)ed

within one /10 !ea$ f$o% the enat%ent of this Code. The Co%%ission shall $etain>"$isdition o)e$ 'endin& s"s'ension of 'a!%ents4$ehabilitation ases filed as of *; "ne

2;;; "ntil finall! dis'osed. chan robles virtual la librar!

SEC. 7.Indemnification and Resonsi!ilities of Commissioners.- 7.1. The Co%%issionshall inde%nif! eah Co%%issione$ and othe$ offiials of the Co%%ission# inl"din&'e$sonnel 'e$fo$%in& s"'e$)ision and e6a%ination f"ntions fo$ all osts and e6'enses

$easonabl! in"$$ed b! s"h 'e$sons in onnetion with an! i)il o$ $i%inal ations#

s"its o$ '$oeedin&s to whih the! %a! be o$ %ade a 'a$t! b! $eason of the 'e$fo$%aneof thei$ f"ntions o$ d"ties# "nless the! a$e finall! ad>"d&ed in s"h ations o$

'$oeedin&s to be liable fo$ &$oss ne&li&ene o$ %isond"t.

In the e)ent of settle%ent o$ o%'$o%ise# inde%nifiation shall be '$o)ided onl! in

onnetion with s"h %atte$s o)e$ed b! the settle%ent as to whih the Co%%ission isad)ised b! e6te$nal o"nsel that the 'e$sons to be inde%nified did not o%%it an! &$oss

ne&li&ene o$ %isond"t.

The osts and e6'enses in"$$ed in defendin& the afo$e%entioned ation# s"it o$'$oeedin& %a! be 'aid b! the Co%%ission in ad)ane of the final dis'osition of s"h

ation# s"it o$ '$oeedin& "'on $eei't of an "nde$takin& b! o$ on behalf of the

Co%%issione$# offie$ o$ e%'lo!ee to $e'a! the a%o"nt ad)aned sho"ld it "lti%atel! bedete$%ined b! the Co%%ission that he4she is not entitled to be inde%nified as '$o)ided in

this s"bsetion.
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7.2. The Co%%issione$s# offie$s and e%'lo!ees of the Co%%ission who willf"ll!

)iolate this Code o$ who a$e &"ilt! of ne&li&ene# ab"se o$ ats of %alfeasane o$ fail to

e6e$ise e6t$ao$dina$! dili&ene in the 'e$fo$%ane of thei$ d"ties shall be held liable fo$an! loss o$ in>"$! s"ffe$ed b! the Co%%ission o$ othe$ instit"tions as a $es"lt of s"h

)iolation# ne&li&ene# ab"se# %alfeasane# o$ fail"$e to e6e$ise e6t$ao$dina$! dili&ene.Si%ila$ $es'onsibilit! shall a''l! to the Co%%issione$s# offie$s and e%'lo!ees of theCo%%ission fo$ /10 the dislos"$e of an! info$%ation# dis"ssion o$ $esol"tion of the

Co%%ission of a onfidential nat"$e# o$ abo"t the onfidential o'e$ations of the

Co%%ission# "nless the dislos"$e is in onnetion with the 'e$fo$%ane of offiialf"ntions with the Co%%ission o$ with '$io$ a"tho$i(ation of the Co%%issione$s o$ /20

the "se of s"h info$%ation fo$ 'e$sonal &ain o$ to the det$i%ent of the &o)e$n%ent# the

Co%%ission o$ thi$d 'a$tiesPro(ided# ho'e(er# That an! data o$ info$%ation $eob anal!sis and a"dit of at"al d"ties and $es'onsibilities. The

o%'ensation 'lan shall be o%'a$able with the '$e)ailin& o%'ensation 'lan in theBangko Sentral ng Piliinas and othe$ &o)e$n%ent finanial instit"tions and shall be

s"b>et to 'e$iodi $e)iew b! the Co%%ission no %o$e than one e)e$! two /20 !ea$s

witho"t '$e>"die to !ea$l! %e$it $e)iews o$ in$eases based on '$od"ti)it! andeffiien!. The Co%%ission shall# the$efo$e# be e6e%'t f$o% laws# $"les# and $e&"lations

on o%'ensation# 'osition lassifiation and


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9.*. The Co%%ission %a! s'eif! the te$%s and onditions "nde$ whih an! w$itten

o%%"niation# inl"din& an! s"%%a$! '$os'et"s# shall be dee%ed not to onstit"te an

offe$ fo$ sale "nde$ this Setion.

9.3. A $eo$d of the $e&ist$ation of se"$ities shall be ke't in a Re&iste$ of Se"$ities inwhih shall be $eo$ded o$de$s ente$ed b! the Co%%ission with $es'et to s"h se"$ities.

S"h $e&iste$ and all do"%ents o$ info$%ation with $es'et to the se"$ities $e&iste$ed

the$ein shall be o'en to '"bli ins'etion at $easonable ho"$s on b"siness da!s. chan roblesvirtual la librar!

9.5. The Co%%ission %a! a"dit the finanial state%ents# assets and othe$ info$%ation of

a fi$% a''l!in& fo$ $e&ist$ation of its se"$ities whene)e$ it dee%s the sa%e neessa$! toins"$e f"ll dislos"$e o$ to '$otet the inte$est of the in)esto$s and the '"bli in &ene$al.

SEC. :."#emt Securities. -

:.1. The $e


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/a0 At an! >"diial sale# o$ sale b! an e6e"to$# ad%inist$ato$# &"a$dian o$ $eei)e$

o$ t$"stee in insol)en! o$ bank$"'t!.

/b0 ?! o$ fo$ the ao"nt of a 'led&e holde$# o$ %o$t&a&ee o$ an! othe$ si%ila$ lien holde$sellin& o$ offe$in& fo$ sale o$ deli)e$! in the o$dina$! o"$se of b"siness and not fo$ the

'"$'ose of a)oidin& the '$o)isions of this Code# to li


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o%'l! with the $e


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SEC. 12.Procedure for Registration of Securities.-

12.1. All se"$ities $e


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the$eof# 'hotostati o$ othe$wise# shall be f"$nished to inte$ested 'a$ties at s"h

$easonable ha$&e as the Co%%ission %a! '$es$ibe.

12.7. Fithin fo$t!-fi)e /350 da!s afte$ the date of filin& of the $e&ist$ation state%ent# o$b! s"h late$ date to whih the iss"e$ has onsented# the Co%%ission shall dela$e the

$e&ist$ation state%ent effeti)e o$ $e>eted# "nless the a''liant is allowed to a%end the$e&ist$ation state%ent as '$o)ided in Setion 13 he$eof. The Co%%ission shall ente$ ano$de$ dela$in& the $e&ist$ation state%ent to be effeti)e if it finds that the $e&ist$ation

state%ent to&ethe$ with all the othe$ 'a'e$s and do"%ents attahed the$eto# is on its fae

o%'lete and that the $eet a $e&ist$ation state%ent and $ef"se $e&ist$ation of the se"$it! the$e"nde$# o$

$e)oke the effeti)it! of a $e&ist$ation state%ent and the $e&ist$ation of the se"$it!

the$e"nde$ afte$ d"e notie and hea$in& b! iss"in& an o$de$ to s"h effet# settin& fo$th itsfindin&s in $es'et the$eto# if it finds that

/a0 The iss"e$

/i0 Has been >"diiall! dela$ed insol)ent

/ii0 Has )iolated an! of the '$o)isions of this Code# the $"les '$o%"l&ated '"$s"antthe$eto# o$ an! o$de$ of the Co%%ission of whih the iss"e$ has notie in onnetion with

the offe$in& fo$ whih a $e&ist$ation state%ent has been filed

/iii0 Has been o$ is en&a&ed o$ is abo"t to en&a&e in f$a"d"lent t$ansations

/i)0 Has %ade an! false o$ %isleadin& $e'$esentation of %ate$ial fats in an! '$os'et"sone$nin& the iss"e$ o$ its se"$ities

/)0 Has failed to o%'l! with an! $e


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/0 The iss"e$# an! offie$# di$eto$ o$ ont$ollin& 'e$son of the iss"e$# o$ 'e$son

'e$fo$%in& si%ila$ f"ntions# o$ an! "nde$w$ite$ has been on)ited# b! a o%'etent

>"diial o$ ad%inist$ati)e bod!# "'on 'lea of &"ilt!# o$ othe$wise# of an offense in)ol)in&%o$al t"$'it"de and4o$ f$a"d o$ is en>oined o$ $est$ained b! the Co%%ission o$ othe$

o%'etent >"diial o$ ad%inist$ati)e bod! fo$ )iolations of se"$ities# o%%odities# and

othe$ $elated laws.chan robles virtual la librar!

o$ '"$'oses of this s"bsetion# the te$% cometent -udicial or administrati(e!odyshall inl"de a fo$ei&n o"$t of o%'etent >"$isdition as '$o)ided fo$ "nde$ the

R"les of Co"$t.

1*.2. The Co%%ission %a! o%'el the '$od"tion of all the books and 'a'e$s of s"hiss"e$# and %a! ad%iniste$ oaths to# and e6a%ine the offie$s of s"h iss"e$ o$ an! othe$

'e$son onneted the$ewith as to its b"siness and affai$s.

1*.*. If an! iss"e$ shall $ef"se to 'e$%it an e6a%ination to be %ade b! the Co%%ission#its $ef"sal shall be &$o"nd fo$ the $ef"sal o$ $e)oation of the $e&ist$ation of its se"$ities.

1*.3. If the Co%%ission dee%s it neessa$!# it %a! iss"e an o$de$ s"s'endin& the offe$

and sale of the se"$ities 'endin& an! in)esti&ation. The o$de$ shall state the &$o"nds fo$

takin& s"h ation# b"t s"h o$de$ of s"s'ension altho"&h bindin& "'on the 'e$sonsnotified the$eof# shall be dee%ed onfidential# and shall not be '"blished. ='on the

iss"ane of the s"s'ension o$de$# no f"$the$ offe$ o$ sale of s"h se"$it! shall be %ade

"ntil the sa%e is lifted o$ set aside b! the Co%%ission. Othe$wise# s"h sale shall be

)oid.

1*.5. Notie of iss"ane of s"h o$de$ shall be &i)en to the iss"e$ and e)e$! deale$ andb$oke$ who shall ha)e notified the Co%%ission of an intention to sell s"h se"$it!.

1*.7. A $e&ist$ation state%ent %a! be withd$awn b! the iss"e$ onl! with the onsent of

the Co%%ission.

SEC. 13. Amendments to the Registration Statement. - 13.1. If a $e&ist$ation state%ent is

on its fae ino%'lete o$ ina"$ate in an! %ate$ial $es'et# the Co%%ission shall iss"e

an o$de$ di$etin& the a%end%ent of the $e&ist$ation state%ent. ='on o%'liane with

s"h o$de$# the a%ended $e&ist$ation state%ent shall beo%e effeti)e in ao$dane withthe '$oed"$e %entioned in S"bsetion 12.7 he$eof.

13.2. An a%end%ent filed '$io$ to the effeti)e date of the $e&ist$ation state%ent shall

$eo%%ene the fo$t!-fi)e /350 da! 'e$iod within whih the Co%%ission shall at on a$e&ist$ation state%ent. An a%end%ent filed afte$ the effeti)e date of the $e&ist$ation

state%ent shall beo%e effeti)e onl! "'on s"h date as dete$%ined b! the Co%%ission.
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13.*. If an! han&e o"$s in the fats set fo$th in a $e&ist$ation state%ent# the iss"e$ shall

file an a%end%ent the$eto settin& fo$th the han&e.

13.3. If# at an! ti%e# the Co%%ission finds that a $e&ist$ation state%ent ontains an! false

state%ent o$ o%its to state an! fat $e"d&%ent be neessa$! to enablethe Co%%ission to ase$tain whethe$ the $e&ist$ation of s"h se"$it! sho"ld be $e)oked

on an! &$o"nd s'eified in this Code. The Co%%ission %a! also s"s'end the $i&ht to sell

and offe$ fo$ sale s"h se"$it! 'endin& f"$the$ in)esti&ation# b! ente$in& an o$de$s'eif!in& the &$o"nds fo$ s"h ation# and b! notif!in& the iss"e$# "nde$w$ite$# deale$ o$

b$oke$ known as 'a$tii'atin& in s"h offe$in&.

15.2. The $ef"sal to f"$nish info$%ation $e


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CHAPTER IGRe&"lation of P$e-Need Plans

SEC.17.Pre$%eed Plans. - No 'e$son shall sell o$ offe$ fo$ sale to the '"bli an! '$e-need 'lan e6e't in ao$dane with $"les and $e&"lations whih the Co%%ission shall

'$es$ibe. S"h $"les shall $e&"late the sale of '$e-need 'lans b!# a%on& othe$ thin&s#$e


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holde$s holdin& at least one h"nd$ed /1;;0 sha$es is $ed"ed to less than One h"nd$ed

/1;;0.chan robles virtual la librar!

18.*. E)e$! iss"e$ of a se"$it! listed fo$ t$adin& on an E6han&e shall file with theE6han&e a o'! of an! $e'o$t filed with the Co%%ission "nde$ S"bsetion 18.1 he$eof.

18.3. All $e'o$ts /inl"din& finanial state%ents0 $eoint )ent"$es# loan o$ o'tion a$$an&e%ents# '"ts o$ alls# &"a$antees o$ di)ision of losses

o$ '$ofits# o$ '$o6ies na%in& the 'e$sons with who% s"h ont$ats# a$$an&e%ents# o$"nde$standin& ha)e been ente$ed into# and &i)in& the details the$eof.
http://www.chanrobles.com/legal5cc.htmhttp://www.chanrobles.com/legal5cc.htmhttp://www.chanrobles.com/legal5cc.htm


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19.2. If an! han&e o"$s in the fats set fo$th in the state%ents# an a%end%ent

shall be t$ans%itted to the iss"e$# the E6han&e and the Co%%ission.

19.*. The Co%%ission# %a! 'e$%it an! 'e$son to file in lie" of the state%ent $eet to S"bsetion 18.1 whih a$e owned b! hi%# the date of thei$

aet a tende$ offe$ o$ $e


17/54

se"$ities de'osited b! eah de'osito$. The '$o)isions of this s"bsetion shall also a''l!

to se"$ities de'osited within ten /1;0 da!s afte$ notie of an in$ease in the onside$ation

offe$ed to se"$it! holde$s# as des$ibed in 'a$a&$a'h /e0 of this s"bsetion# is fi$st'"blished o$ sent o$ &i)en to se"$it! holde$s.

/e0 Fhe$e an! 'e$son )a$ies the te$%s of a tende$ offe$ o$ $e


18/54

21.1. The '$o'osed a&&$e&ate '"$hase '$ie in the ase of a t$ansation "nde$ Setions

2; o$ 82.2 o$chan robles virtual la librar!

21.2. The '$o'osed 'a!%ent in ash# and the )al"e of an! se"$ities o$ '$o'e$t! to be

t$ansfe$$ed in the a


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the iss"e$# o$ b! the owne$ of an! se"$it! of the iss"e$ in the na%e and in behalf of the

iss"e$ if the iss"e$ shall fail o$ $ef"se to b$in& s"h s"it within si6t! /7;0 da!s afte$

$e


20/54

/i0 Raises thei$ '$ie to ind"e the '"$hase of a se"$it!# whethe$ of the sa%e o$ a

diffe$ent lass of the sa%e iss"e$ o$ of a ont$ollin ont$olled# o$ o%%onl! ont$olled

o%'an! b! othe$s

/ii0 De'$esses thei$ '$ie to ind"e the sale of a se"$it!# whethe$ of the sa%e o$ a

diffe$ent lass# of the sa%e iss"e$ o$ of a ont$ollin ont$olled# o$ o%%onl! ont$olledo%'an! b! othe$s o$

/iii0 C$eates ati)e t$adin& to ind"e s"h a '"$hase o$ sale th$o"&h %ani'"lati)ede)ies s"h as %a$kin& the lose# 'aintin& the ta'e# s


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an! o%ission to state a %ate$ial fat neessa$! in o$de$ to %ake the state%ents %ade# in

the li&ht of the i$"%stanes "nde$ whih the! we$e %ade# not %isleadin& o$

27.*. En&a&e in an! at# t$ansation# '$atie o$ o"$se of b"siness whih o'e$ates o$wo"ld o'e$ate as a f$a"d o$ deeit "'on an! 'e$son.

SEC. 28. Insider7s Duty to Disclose 8hen Trading. - 28.1. It shall be "nlawf"l fo$ an

inside$ to sell o$ b"! a se"$it! of the iss"e$# while in 'ossession of %ate$ial info$%ation

with $es'et to the iss"e$ o$ the se"$it! that is not &ene$all! a)ailable to the '"bli#"nless /a0 The inside$ '$o)es that the info$%ation was not &ained f$o% s"h $elationshi'

o$ /b0 If the othe$ 'a$t! sellin& to o$ b"!in& f$o% the inside$ /o$ his a&ent0 is identified#

the inside$ '$o)es /i0 that he dislosed the info$%ation to the othe$ 'a$t!# o$ /ii0 that hehad $eason to belie)e that the othe$ 'a$t! othe$wise is also in 'ossession of the

info$%ation. A '"$hase o$ sale of a se"$it! of the iss"e$ %ade b! an inside$ defined in

S"bsetion *.9# o$ s"h inside$s s'o"se o$ $elati)es b! affinit! o$ onsan&"init! withinthe seond de&$ee# le&iti%ate o$ o%%on-law# shall be '$es"%ed to ha)e been effeted

while in 'ossession of %ate$ial non-'"bli info$%ation if t$ansated afte$ s"hinfo$%ation a%e into e6istene b"t '$io$ to disse%ination of s"h info$%ation to the

'"bli and the la'se of a $easonable ti%e fo$ the %a$ket to abso$b s"h info$%ationPro(ided) ho'e(er) That this '$es"%'tion shall be $eb"tted "'on a showin& b! the

'"$hase$ o$ selle$ that he was not awa$e of the %ate$ial non-'"bli info$%ation at the

ti%e of the '"$hase o$ sale.

28.2. o$ '"$'oses of this Setion# info$%ation is material non$u!licif /a0 It has not

been &ene$all! dislosed to the '"bli and wo"ld likel! affet the %a$ket '$ie of the

se"$it! afte$ bein& disse%inated to the '"bli and the la'se of a $easonable ti%e fo$ the%a$ket to abso$b the info$%ation o$ /b0 wo"ld be onside$ed b! a $easonable 'e$son

i%'o$tant "nde$ the i$"%stanes in dete$%inin& his o"$se of ation whethe$ to b"!#sell o$ hold a se"$it!.

28.*. It shall be "nlawf"l fo$ an! inside$ to o%%"niate %ate$ial non-'"bli info$%ationabo"t the iss"e$ o$ the se"$it! to an! 'e$son who# b! )i$t"e of the o%%"niation#

beo%es an inside$ as defined in S"bsetion *.9# whe$e the inside$ o%%"niatin& the

info$%ation knows o$ has $eason to belie)e that s"h 'e$son will likel! b"! o$ sell ase"$it! of the iss"e$ while in 'ossession of s"h info$%ation.

28.3. /a0 It shall be "nlawf"l whe$e a tende$ offe$ has o%%ened o$ is abo"t to

o%%ene fo$

/i0 An! 'e$son /othe$ than the tende$ offe$o$0 who is in 'ossession of %ate$ialnon-'"bli info$%ation $elatin& to s"h tende$ offe$# to b"! o$ sell the se"$ities of the

iss"e$ that a$e so"&ht o$ to be so"&ht b! s"h tende$ offe$ if s"h 'e$son knows o$ has

$eason to belie)e that the info$%ation is non-'"bli and has been a


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o%%"niate %ate$ial non-'"bli info$%ation $elatin& to the tende$ offe$ to an! othe$

'e$son whe$e s"h o%%"niation is likel! to $es"lt in a )iolation of S"bsetion 28.3 /a0

/i0./b0 o$ '"$'oses of this s"bsetion the te$% securities of the issuer sought or to

!e sought !y such tender offer shall inl"de an! se"$ities on)e$tible o$ e6han&eable

into s"h se"$ities o$ an! o'tions o$ $i&hts in an! of the fo$e&oin& se"$ities.CHAPTER GIIIRe&"lation of Se"$ities @a$ket P$ofessionals

SEC. 29. Registration of Brokers) Dealers) Salesmen and Associated Persons. -

29.1. No 'e$son shall en&a&e in the b"siness of b"!in& o$ sellin& se"$ities in the

Phili''ines as a b$oke$ o$ deale$# o$ at as a sales%an# o$ an assoiated 'e$son of an!b$oke$ o$ deale$ "nless $e&iste$ed as s"h with the Co%%ission.

29.2. No $e&iste$ed b$oke$ o$ deale$ shall e%'lo! an! sales%an o$ an! assoiated 'e$son#

and no iss"e$ shall e%'lo! an! sales%an# who is not $e&iste$ed as s"h with theCo%%ission.

29.*. The Co%%ission# b! $"le o$ o$de$# %a! onditionall! o$ "nonditionall! e6e%'t

f$o% S"bsetions 29.1 and 29.2 an! b$oke$# deale$# sales%an# assoiated 'e$son of an!

b$oke$ o$ deale$# o$ an! lass of the fo$e&oin as it dee%s onsistent with the '"bli

inte$est and the '$otetion of in)esto$s.

29.3. The Co%%ission shall '$o%"l&ate $"les and $e&"lations '$es$ibin& the


23/54

shall '$es$ibe. o$ '"$'oses of this Setion# a sales%an shall not inl"de an! e%'lo!ee

of an iss"e$ whose o%'ensation is not dete$%ined di$etl! o$ indi$etl! on sales of

se"$ities of the iss"e$.

29.8. A''liations filed '"$s"ant to S"bsetions 29.5 and 29.7 shall be ao%'anied b! a

$e&ist$ation fee in s"h $easonable a%o"nt '$es$ibed b! the Co%%ission.

29.9. Fithin thi$t! /*;0 da!s afte$ the filin& of an! a''liation "nde$ this Setion# the

Co%%ission shall b! o$de$ /a0 B$ant $e&ist$ation if it dete$%ines that the $e


24/54

$e&"lato$! o$&ani(ation# o$ has willf"ll! o%itted to state an! %ate$ial fat that is $e"diial o$ ad%inist$ati)e bod! of anoffense in)ol)in& %o$al t"$'it"de# f$a"d# e%be((le%ent# o"nte$feitin theft# estafa#

%isa''$o'$iation# fo$&e$!# b$ibe$!# false oath# o$ 'e$>"$!# o$ of a )iolation of se"$ities#

o%%odities# bankin $eal estate o$ ins"$ane laws/e0 Is en>oined o$ $est$ained b! a o%'etent >"diial o$ ad%inist$ati)e bod! f$o%

en&a&in& in se"$ities# o%%odities# bankin $eal estate o$ ins"$ane ati)ities o$ f$o%

willf"ll! )iolatin& laws &o)e$nin& s"h ati)ities

/f0 Is s"b>et to an o$de$ of a o%'etent >"diial o$ ad%inist$ati)e bod! $ef"sin$e)okin& o$ s"s'endin& an! $e&ist$ation# liense o$ othe$ 'e$%it "nde$ this Code# the $"les

and $e&"lations '$o%"l&ated the$e"nde$# an! othe$ law ad%iniste$ed b! the Co%%ission

/&0 Is s"b>et to an o$de$ of a self-$e&"lato$! o$&ani(ation s"s'endin& o$ e6'ellin&

hi% f$o% %e%be$shi' o$ 'a$tii'ation the$ein o$ f$o% assoiation with a %e%be$ o$'a$tii'ant the$eof

/h0 Has been fo"nd b! a o%'etent >"diial o$ ad%inist$ati)e bod! to ha)ewillf"ll! )iolated an! '$o)isions of se"$ities# o%%odities# bankin $eal estate o$

ins"$ane laws# o$ has willf"ll! aided# abetted# o"nseled# o%%anded# ind"ed o$

'$o"$ed s"h )iolation o$/i0 Has been >"diiall! dela$ed insol)ent.

o$ '"$'oses of this s"bsetion# the te$% cometent -udicial or administrati(e

!ody shall inl"de a fo$ei&n o"$t of o%'etent >"$isdition and a fo$ei&n finanial

$e&"lato$.

2:.2. /a0 In ases of ha$&es a&ainst a sales%an o$ assoiated 'e$son# notie the$eof shallalso be &i)en the b$oke$# deale$ o$ iss"e$ e%'lo!in& s"h sales%an o$ assoiated 'e$son.

/b0 Pendin& the hea$in the Co%%ission shall ha)e the 'owe$ to o$de$ the s"s'ension of

s"h b$oke$s# deale$s# assoiated 'e$sons o$ sales%ans $e&ist$ation Pro(ided# Thats"h o$de$ shall state the a"se fo$ s"h s"s'ension. =ntil the ent$! of a final o$de$# the

s"s'ension of s"h $e&ist$ation# tho"&h bindin& "'on the 'e$sons notified the$eof# shall be

dee%ed onfidential# and shall not be '"blished# "nless it shall a''ea$ that the o$de$ ofs"s'ension has been )iolated afte$ notie.chan robles virtual la librar!

2:.*. The o$de$ of the Co%%ission $ef"sin $e)okin s"s'endin& o$ 'lain& li%itations

on a $e&ist$ation as he$ein abo)e '$o)ided# to&ethe$ with its findin&s# shall be ente$ed inthe Re&iste$ of Se"$ities @a$ket P$ofessionals. The s"s'ension o$ $e)oation of the

$e&ist$ation of a deale$ o$ b$oke$ shall also a"to%atiall! s"s'end the $e&ist$ation of all

sales%en and assoiated 'e$sons affiliated with s"h b$oke$ o$ deale$.

2:.3. It shall be s"ffiient a"se fo$ $ef"sal# $e)oation o$ s"s'ension of a b$oke$s

o$ deale$s $e&ist$ation# if an! assoiated 'e$son the$eof o$ an! >"$idial entit! ont$olled


25/54

b! s"h assoiated 'e$son has o%%itted an! at o$ o%ission o$ is s"b>et to an!

disabilit! en"%e$ated in 'a$a&$a'hs /a0 th$o"&h /i0 of S"bsetion 2:.1 he$eof.

SEC. *;. Transactions and Resonsi!ility of Brokers and Dealers . - *;.1. No b$oke$ o$deale$ shall deal in o$ othe$wise b"! o$ sell# fo$ its own ao"nt o$ fo$ the ao"nt of

"sto%e$s# se"$ities listed on an E6han&e iss"ed b! an! o$'o$ation whe$e an!stokholde$# di$eto$# assoiated 'e$son o$ sales%an# o$ a"tho$i(ed le$k of said b$oke$ o$deale$ and all the $elati)es of the fo$e&oin& within the fo"$th i)il de&$ee of

onsan&"init! o$ affinit!# is at the ti%e holdin& offie in said iss"e$ o$'o$ation as a

di$eto$# '$esident# )ie-'$esident# %ana&e$# t$eas"$e$# o%'t$olle$# se$eta$! o$ an!offie of t$"st and $es'onsibilit!# o$ is a ont$ollin& 'e$son of the iss"e$.

*;.2. No b$oke$ o$ deale$ shall effet an! t$ansation in se"$ities o$ ind"e o$ atte%'t to

ind"e the '"$hase o$ sale of an! se"$it! e6e't in o%'liane with s"h $"les and

$e&"lations as the Co%%ission shall '$es$ibe to ens"$e fai$ and honest dealin&s inse"$ities and '$o)ide finanial safe&"a$ds and othe$ standa$ds fo$ the o'e$ation of

b$oke$s and deale$s# inl"din& the establish%ent of %ini%"% net a'ital $e


26/54

'$otetion of in)esto$s o%'a$able to that '$o)ided in the ase of a $e&iste$ed E6han&e.

S"h self-$e&"lato$! o$&ani(ation %"st '$o)ide a ent$ali(ed %a$ket'lae fo$ t$adin& and

%"st satisf! $e


27/54

b! the Co%%ission# the $"les# $e&"lations and o$de$s the$e"nde$# o$ the $"les of the

E6han&e

/e0 A fai$ '$oed"$e fo$ the disi'linin& of %e%be$s and 'e$sons assoiated with%e%be$s# the denial of %e%be$shi' to an! 'e$son seekin& to be a %e%be$# the ba$$in& of

an! 'e$son f$o% assoiation with a %e%be$# and the '$ohibition o$ li%itation of an!

'e$son f$o% aess to se$)ies offe$ed b! the E6han&e/f0 That the b$oke$s in the boa$d of the E6han&e shall o%'$ise of not %o$e than

fo$t!-nine 'e$ent /3:0 of s"h boa$d and shall '$o'o$tionatel! $e'$esent the E6han&e

%e%be$shi' in te$%s of )ol"%e4)al"e of t$ade and 'aid "' a'ital# and that an! nat"$al'e$son assoiated with a >"$idial entit! that is a %e%be$ shall hi%self be dee%ed to be a

%e%be$ fo$ this '"$'ose Pro(ided) That an! $e&iste$ed E6han&e e6istin& '$io$ to the

effeti)it! of this Code shall i%%ediatel! o%'l! with this $e


28/54

shall a"se s"h E6han&e to be $e&iste$ed. If# afte$ notie d"e and hea$in the

Co%%ission finds othe$wise# the a''liation shall be denied.

**.3. Fithin ninet! /:;0 da!s afte$ the filin& of the a''liation the Co%%ission %a! iss"ean o$de$ eithe$ &$antin& o$ den!in& $e&ist$ation as an E6han&e# "nless the E6han&e

a''l!in& fo$ $e&ist$ation shall withd$aw its a''liation o$ shall onsent to theCo%%issions defe$$in& ation on its a''liation fo$ a stated lon&e$ 'e$iod afte$ the dateof filin&. The filin& with the Co%%ission of an a''liation fo$ $e&ist$ation b! an

E6han&e shall be dee%ed to ha)e taken 'lae "'on the $eei't the$eof. A%end%ents to

an a''liation %a! be %ade "'on s"h te$%s as the Co%%ission %a! '$es$ibe.

**.5. ='on the $e&ist$ation of an E6han&e# it shall 'a! a fee in s"h a%o"nt and withins"h 'e$iod as the Co%%ission %a! fi6.

**.7. ='on a''$o'$iate a''liation in ao$dane with the $"les and $e&"lations of the

Co%%ission and "'on s"h te$%s as the Co%%ission %a! dee% neessa$! fo$ the

'$otetion of in)esto$s# an E6han&e %a! withd$aw its $e&ist$ation o$ s"s'end itso'e$ations o$ $es"%e the sa%e.

SEC. *3. Segregation and 9imitation of *unctions of 5em!ers) Brokers and Dealers . -

*3.1. It shall be "nlawf"l fo$ an! %e%be$-b$oke$ of an E6han&e to effet an! t$ansationon s"h E6han&e fo$ its own ao"nt# the ao"nt of an assoiated 'e$son# o$ an ao"nt

with $es'et to whih it o$ an assoiated 'e$son the$eof e6e$ises in)est%ent dis$etion

Pro(ided) ho'e(er# That this setion shall not %ake "nlawf"l -/a0 An! t$ansation b! a %e%be$-b$oke$ atin& in the a'ait! of a %a$ket %ake$

/b0 An! t$ansation $easonabl! neessa$! to a$$! on an odd-lot t$ansations

/0 An! t$ansation to offset a t$ansation %ade in e$$o$ and

/d0 An! othe$ t$ansation of a si%ila$ nat"$e as %a! be defined b! theCo%%ission.

*3.2. In all instanes whe$e the %e%be$-b$oke$ effets a t$ansation on an

E6han&e fo$ its own ao"nt o$ the ao"nt of an assoiated 'e$son o$ an ao"nt with$es'et to whih it e6e$ises in)est%ent dis$etion# it shall dislose to s"h "sto%e$ at o$

befo$e the o%'letion of the t$ansation it is atin& fo$ its own ao"nt Pro(ided)

further) That this fat shall be $efleted in the o$de$ tiket and the onfi$%ation sli'.

*3.*. An! %e%be$-b$oke$ who )iolates the '$o)isions of this Setion shall be s"b>et to

the ad%inist$ati)e santions '$o)ided in Setion 53 of this Code.

SEC. *5.Additional *ees of "#changes. - In addition to the $e&ist$ation fee '$es$ibed inSetion ** of this Code# e)e$! E6han&e shall 'a! to the Co%%ission# on a se%est$albasis on o$ befo$e the tenth da! of the end of e)e$! se%este$ of the alenda$ !ea$# a fee in

s"h an a%o"nt as the Co%%ission shall '$es$ibe# b"t not %o$e than one-h"nd$edth of

oneer centum /10 of the a&&$e&ate a%o"nt of the sales of se"$ities t$ansated on s"hE6han&e d"$in& the '$eedin& alenda$ !ea$# fo$ the '$i)ile&e of doin& b"siness# d"$in&

the '$eedin& alenda$ !ea$ o$ an! 'a$t the$eof.


29/54

SEC. *7. Po'ers 'ith Resect to "#changes and ther Trading 5arket. - *7.1. The

Co%%ission is a"tho$i(ed# if in its o'inion s"h ation is neessa$! o$ a''$o'$iate fo$ the

'$otetion of in)esto$s and the '"bli inte$est so $e


30/54

SEC. *8. Registration of Inno(ati(e and ther Trading 5arkets. - The Co%%ission#

ha)in& d"e $e&a$d fo$ national eono%i de)elo'%ent# shall eno"$a&e o%'etiti)eness

in the %a$ket b! '$o%"l&atin& within si6 /70 %onths "'on the enat%ent of this Code#$"les fo$ the $e&ist$ation and liensin& of inno)ati)e and othe$ t$adin& %a$kets o$

E6han&es o)e$in b"t not li%ited to# the iss"ane and t$adin& of inno)ati)e se"$ities#se"$ities of s%all# %edi"%# &$owth and )ent"$e ente$'$ises# and tehnolo&!-based)ent"$es '"$s"ant to Setion ** of this Code.

SEC. *9.Indeendent Directors. - An! o$'o$ation with a lass of e


31/54

*:.2. An assoiation of b$oke$s and deale$s %a! be $e&iste$ed as a se"$ities assoiation

'"$s"ant to S"bsetion *:.* b! filin& with the Co%%ission an a''liation fo$ $e&ist$ation

in s"h fo$% as the Co%%ission# b! $"le# %a! '$es$ibe ontainin& the $"les of theassoiation and s"h othe$ info$%ation and do"%ents as the Co%%ission# b! $"le# %a!

'$es$ibe as neessa$! o$ a''$o'$iate in the '"bli inte$est o$ fo$ the '$otetion ofin)esto$s.

*:.*. An assoiation of b$oke$s and deale$s shall not be $e&iste$ed as a se"$itiesassoiation "nless the Co%%ission dete$%ines that

/a0 The assoiation is so o$&ani(ed and has the a'ait! to be able to a$$! o"t the

'"$'oses of this Code and to o%'l! with# and to enfo$e o%'liane b! its %e%be$s and'e$sons assoiated with its %e%be$s# with the '$o)isions of this Code# the $"les and

$e&"lations the$e"nde$# and the $"les of the assoiation.

/b0 The $"les of the assoiation# notwithstandin& an!thin& in the Co$'o$ation Code to the

ont$a$!# '$o)ide that/i0 An! $e&iste$ed b$oke$ o$ deale$ %a! beo%e a %e%be$ of the assoiation

/ii0 The$e e6ist a fai$ $e'$esentation of its %e%be$s to se$)e on the ?oa$d of Di$eto$s of

the assoiation and in the ad%inist$ation of its affai$s# and that an! nat"$al 'e$sonassoiated with a >"$idial entit! that is a %e%be$ shall hi%self be dee%ed to be a

%e%be$ fo$ this '"$'ose

/iii0 The ?oa$d of Di$eto$s of the assoiation inl"des in its o%'osition /a0 The'$esident of the assoiation and /b0 Pe$sons who $e'$esent the inte$ests of iss"e$s and

'"bli in)esto$s and a$e not assoiated with an! b$oke$ o$ deale$ o$ %e%be$ of the

assoiation that the '$esident and othe$ %ana&e%ent of the assoiation not be a %e%be$o$ assoiated with an! b$oke$# deale$ o$ %e%be$ of the assoiation

/i)0 o$ the e


32/54

'$ohibition o$ li%itation b! the assoiation of an! 'e$son with $es'et to aess to

se$)ies offe$ed b! the assoiation o$ a %e%be$ the$eof.

*:.3. /a0 A $e&iste$ed se"$ities assoiation shall den! %e%be$shi' to an! 'e$sonwho is not a $e&iste$ed b$oke$ o$ deale$.

/b0 A $e&iste$ed se"$ities assoiation %a! den! %e%be$shi' to# o$ ondition the%e%be$shi' of# a $e&iste$ed b$oke$ o$ deale$ if s"h b$oke$ o$ deale$

/i0 Does not %eet the standa$ds of finanial $es'onsibilit!# o'e$ational a'abilit!#

t$ainin e6'e$iene# o$ o%'etene that a$e '$es$ibed b! the $"les of the assoiation o$

/ii0 Has en&a&ed# and the$e is a $easonable likelihood it will a&ain en&a&e# in ats o$

'$aties inonsistent with >"st and e


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of an a''liation fo$ $e&ist$ation as an E6han&e "nde$ Setion **# a $e&iste$ed se"$ities

assoiation "nde$ Setion *:# a $e&iste$ed lea$in& a&en! "nde$ Setion 32# o$ othe$ self-

$e&"lato$! o$&ani(ation "nde$ this Setion# the Co%%ission shall ha)e ninet! /:;0 da!swithin whih to eithe$ &$ant $e&ist$ation o$ instit"te a '$oeedin& to dete$%ine whethe$

$e&ist$ation sho"ld be denied. In the e)ent '$oeedin&s a$e instit"ted# the Co%%ission

shall ha)e two h"nd$ed se)ent! /28;0 da!s within whih to onl"de s"h '$oeedin&s atwhih ti%e it shall# b! o$de$# &$ant o$ den! s"h $e&ist$ation.

3;.2. E)e$! self-$e&"lato$! o$&ani(ation shall o%'l! with the '$o)isions of this Code#

the $"les and $e&"lations the$e"nde$# and its own $"les# and enfo$e o%'liane the$ewith#notwithstandin& an! '$o)ision of the Co$'o$ation Code to the ont$a$!# b! its %e%be$s#

'e$sons assoiated with its %e%be$s o$ its 'a$tii'ants.

3;.*. /a0 Eah self-$e&"lato$! o$&ani(ation shall s"b%it to the Co%%ission fo$ '$io$

a''$o)al an! '$o'osed $"le o$ a%end%ent the$eto# to&ethe$ with a onise state%ent ofthe $eason and effet of the '$o'osed a%end%ent.

/b0 Fithin si6t! /7;0 da!s afte$ s"b%ission of a '$o'osed a%end%ent# the Co%%ission

shall# b! o$de$# a''$o)e the '$o'osed a%end%ent. Othe$wise# the sa%e %a! be %adeeffeti)e b! the self-$e&"lato$! o$&ani(ation.

/0 In the e)ent of an e%e$&en! $e


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/f0 ititio"s ao"nts

/&0 The ti%e and %ethod of %akin& settle%ents# 'a!%ents# and deli)e$ies# and of losin&

ao"nts

/h0 The t$ans'a$en! of se"$ities t$ansations and '$ies

/i0 The fi6in& of $easonable $ates of fees# inte$est# listin& and othe$ ha$&es# b"t not $ates

of o%%ission

/>0 @ini%"% "nits of t$adin&

/k0 Odd-lot '"$hases and sales

/l0 @ini%"% de'osits on %a$&in ao"nts and

/%0 The s"'e$)ision# a"ditin& and disi'linin& of %e%be$s o$ 'a$tii'ants.

3;.5. The Co%%ission# afte$ d"e notie and hea$in is a"tho$i(ed# in the '"bli

inte$est and to '$otet in)esto$s/a0 To s"s'end fo$ a 'e$iod not e6eedin& twel)e /120 %onths o$ to $e)oke the

$e&ist$ation of a self-$e&"lato$! o$&ani(ation# o$ to ens"$e o$ i%'ose li%itations on the

ati)ities# f"ntions# and o'e$ations of s"h self-$e&"lato$! o$&ani(ation# if theCo%%ission finds that s"h a self-$e&"lato$! o$&ani(ation has willf"ll! )iolated o$ is

"nable to o%'l! with an! '$o)ision of this Code o$ of the $"les and $e&"lations

the$e"nde$# o$ its own $"les# o$ has failed to enfo$e o%'liane the$ewith b! a %e%be$

of# 'e$son assoiated with a %e%be$# o$ a 'a$tii'ant in s"h self-$e&"lato$! o$&ani(ation/b0 To e6'el f$o% a self-$e&"lato$! o$&ani(ation an! %e%be$ the$eof o$ an! 'a$tii'ant

the$ein who is s"b>et to an o$de$ of the Co%%ission "nde$ Setion 2: of this Code o$ isfo"nd to ha)e willf"ll! )iolated an! '$o)ision of this Code o$ s"s'end fo$ a 'e$iod not

e6eedin& twel)e /120 %onths fo$ )iolation of an! '$o)ision of this Code o$ an! othe$

laws ad%iniste$ed b! the Co%%ission# o$ the $"les and $e&"lations the$e"nde$# o$

effeted# di$etl! o$ indi$etl!# an! t$ansation fo$ an! 'e$son who# s"h %e%be$ o$'a$tii'ant had $eason to belie)e# was )iolatin& in $es'et of s"h t$ansation an! of s"h

'$o)isions and

/0 To $e%o)e f$o% offie o$ ens"$e an! offie$ o$ di$eto$ of a self-$e&"lato$!o$&ani(ation if it finds that s"h offie$ o$ di$eto$ has )iolated an! '$o)ision of thisCode# an! othe$ law ad%iniste$ed b! the Co%%ission# the $"les o$ $e&"lations the$e"nde$#

o$ the $"les of s"h self-$e&"lato$! o$&ani(ation# ab"sed his a"tho$it!# o$ witho"t

$easonable >"stifiation o$ e6"se has failed to enfo$e o%'liane with an! of s"h'$o)isions.chan robles virtual la librar!

3;.7. /a0 A self-$e&"lato$! o$&ani(ation is a"tho$i(ed to disi'line a %e%be$ of o$

'a$tii'ant in s"h self-$e&"lato$! o$&ani(ation# o$ an! 'e$son assoiated with a %e%be$#


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inl"din& the s"s'ension o$ e6'"lsion of s"h %e%be$ o$ 'a$tii'ant# and the s"s'ension

o$ ba$ f$o% bein& assoiated with a %e%be$# if s"h 'e$son has en&a&ed in ats o$

'$aties inonsistent with >"st and e


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3;.9. The 'owe$s of the Co%%ission "nde$ this setion shall a''l! to o$&ani(ed

e6han&es and $e&iste$ed lea$in& a&enies.

CHAPTER IA


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/d0 P$e)ention of f$a"d"lent and %ani'"lati)e ats and '$aties# '$o%otion of >"st and

e


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3*.2. The Co%%ission b! $"le %a! allow othe$ o$'o$ations to '$o)ide in thei$ a$tiles of

ino$'o$ation and b!-laws fo$ the "se of "ne$tifiated se"$ities.

3*.*. T$ansfe$s of se"$ities# inl"din& an "ne$tifiated se"$ities# %a! be )alidl! %ade

and ons"%%ated b! a''$o'$iate book-ent$ies in the se"$ities ao"nts %aintained b!se"$ities inte$%edia$ies# o$ in the stok and t$ansfe$ book held b! the o$'o$ation o$ the

stok t$ansfe$ a&ent and s"h bookkee'in& ent$ies shall be bindin& on the 'a$ties to the

t$ansfe$. A t$ansfe$ "nde$ this s"bsetion has the effet of the deli)e$! of a se"$it! inbea$e$ fo$% o$ d"l! indo$sed in blank $e'$esentin& the


39/54

had notie of an ad)e$se lai% befo$e the $e&ist$ation was %ade. The abo)e '$o)ision

shall be witho"t '$e>"die to an! $i&hts whih the lai%ant %a! ha)e a&ainst the iss"e$

fo$ w$on&f"l $e&ist$ation in s"h i$"%stanes.

SEC. 38. Po'er of the Commission 8ith Resect to Securities 'nershi. - The

Co%%ission is a"tho$i(ed# ha)in& d"e $e&a$d to the '"bli inte$est and the '$otetion ofin)esto$s# to '$o%"l&ate $"les and $e&"lations whih

38.1. Galidate the t$ansfe$ of se"$ities b! book-ent$ies $athe$ than the deli)e$! of'h!sial e$tifiates

38.2. Establish when a 'e$son a


40/54

'$eedin& thi$t!-si6 /*70 alenda$ %onths# b"t not %o$e than se)ent!-fi)e er centum

/850 of the "$$ent %a$ket '$ie.

Howe)e$# the @oneta$! ?oa$d %a! in$ease o$ de$ease the abo)e 'e$enta&es# ino$de$ to ahie)e the ob>eti)es of the Bo)e$n%ent with d"e $e&a$d fo$ '$o%otion of the

eono%! and '$e)ention of the "se of e6essi)e $edit.

S"h $"les and $e&"lations %a! %ake a''$o'$iate '$o)ision with $es'et to the a$$!in&of "nde$%a$&ined ao"nts fo$ li%ited 'e$iods and "nde$ s'eified onditions the

withd$awal of f"nds o$ se"$ities the t$ansfe$ of ao"nts f$o% one lende$ to anothe$

s'eial o$ diffe$ent %a$&in $e


41/54

indebtedness inl"din& "sto%e$s $edit balanes# to e6eed s"h 'e$enta&e of the net

a'ital /e6l"si)e of fi6ed assets and )al"e of E6han&e %e%be$shi'0 e%'lo!ed in the

b"siness# b"t not e6eedin& in an! ase two tho"sand er centum /2#;;;0# as theCo%%ission %a! b! $"les and $e&"lations '$es$ibe as neessa$! o$ a''$o'$iate in the

'"bli inte$est o$ fo$ the '$otetion of in)esto$s.

3:.2. To 'led&e# %o$t&a&e# o$ othe$wise en"%be$ o$ a$$an&e fo$ the 'led&e# %o$t&a&e o$en"%b$ane of an! se"$it! a$$ied fo$ the ao"nt of an! "sto%e$ "nde$

i$"%stanes /a0 That will 'e$%it the o%%in&lin& of his se"$ities# witho"t his w$itten

onsent# with the se"$ities of an! "sto%e$ /b0 That will 'e$%it s"h se"$ities to beo%%in&led with the se"$ities of an! 'e$son othe$ than a !ona fide"sto%e$ o$ /0 That

will 'e$%it s"h se"$ities to be 'led&ed# %o$t&a&ed o$ en"%be$ed# o$ s"b>eted to an!

lien o$ lai% of the 'led&ee# fo$ a s"% in e6ess of the a&&$e&ate indebtedness of s"h"sto%e$s in $es'et of s"h se"$ities. Howe)e$# the Co%%ission# ha)in& d"e $e&a$d to

the '$otetion of in)esto$s# %a!# b! $"les and $e&"lations# allow e$tain t$ansations that

%a! othe$wise be '$ohibited "nde$ this s"bsetion.

3:.*. To lend o$ a$$an&e fo$ the lendin& of an! se"$it! a$$ied fo$ the ao"nt of an!

"sto%e$ witho"t the w$itten onsent of s"h "sto%e$ o$ in ont$a)ention of s"h $"lesand $e&"lations as the Co%%ission shall '$es$ibe.

SEC. 5;. "nforcement of 5argin Re,uirements and Restrictions on Borro'ing. -

To '$e)ent indi$et )iolations of the %a$&in $e"die to the $i&ht of the b$oke$ o$ deale$ to $eo)e$ an! defiien! f$o% the"sto%e$. To '$e)ent indi$et )iolation of the $est$itions on bo$$owin&s "nde$ Setion

3:# the b$oke$ shall# "nless othe$wise di$eted b! the "sto%e$# 'a! the net sales '$ie of

the se"$ities sold fo$ a "sto%e$ within the sa%e 'e$iod as abo)e '$es$ibed b! theCo%%ission Pro(ided)That the "sto%e$ shall be $e


42/54

Co%%ission the$e"nde$# shall also be liable >ointl! and se)e$all! with and to the sa%e

e6tent as s"h ont$olled 'e$sons to an! 'e$son to who% s"h ont$olled 'e$son is liable#

"nless the ont$ollin& 'e$son '$o)es that# des'ite the e6e$ise of d"e dili&ene on his 'a$t#he has no knowled&e of the e6istene of the fats b! $eason of whih the liabilit! of the

ont$olled 'e$son is alle&ed to e6ist.

51.2. It shall be "nlawf"l fo$ an! 'e$son# di$etl! o$ indi$etl!# to do an! at o$ thin&whih it wo"ld be "nlawf"l fo$ s"h 'e$son to do "nde$ the '$o)isions of this Code o$

an! $"le o$ $e&"lation the$e"nde$.chan robles virtual la librar!

51.*. It shall be "nlawf"l fo$ an! di$eto$ o$ offie$ of# o$ an! owne$ of an! se"$ities

iss"ed b!# an! iss"e$ $e"stl! en$ihed

the$eb!# whihe)e$ is &$eate$.

SEC. 52. Accounts and Records) Reorts) "#amination of "#changes) 5em!ers) and

thers. - 52.1. E)e$! $e&iste$ed E6han&e# b$oke$ o$ deale$# t$ansfe$ a&ent# lea$in&

a&en!# se"$ities assoiation# and othe$ self-$e&"lato$! o$&ani(ation# and e)e$! othe$'e$son $eet to the $"les and

$e&"lations '$es$ibed b! the Co%%ission '"$s"ant to this Code# shall %ake s"h $e'o$ts

to the Co%%ission as %a! be neessa$! o$ a''$o'$iate to enable it to 'e$fo$% thef"ntions onfe$$ed "'on it b! this Code.

52.*. o$ '"$'oses of this Setion# the te$% +$eo$ds, $efe$s to ao"nts# o$$es'ondene#


43/54

%e%o$anda# ta'es# diss# 'a'e$s# books and othe$ do"%ents o$ t$ans$ibed info$%ation

of an! t!'e# whethe$ w$itten o$ elet$oni in ha$ate$.

SEC. 5*. In(estigations) In-unctions and Prosecution of ffenses . - 5*.1. TheCo%%ission %a!# in its dis$etion# %ake s"h in)esti&ations as it dee%s neessa$! to

dete$%ine whethe$ an! 'e$son has )iolated o$ is abo"t to )iolate an! '$o)ision of thisCode# an! $"le# $e&"lation o$ o$de$ the$e"nde$# o$ an! $"le of an E6han&e# $e&iste$edse"$ities assoiation# lea$in& a&en!# othe$ self-$e&"lato$! o$&ani(ation# and %a!

$eoinin& the )iolation and o%'ellin&

o%'liane with s"h '$o)ision. The Co%%ission %a! t$ans%it s"h e)idene as %a! be


44/54

a)ailable one$nin& an! )iolation of an! '$o)ision of this Code# o$ an! $"le# $e&"lation

o$ o$de$ the$e"nde$# to the De'a$t%ent of "stie# whih %a! instit"te the a''$o'$iate

$i%inal '$oeedin&s "nde$ this Code.

5*.3. An! 'e$son who# within his 'owe$ b"t witho"t a"se# fails o$ $ef"ses to o%'l!

with an! lawf"l o$de$# deision o$su!oenaiss"ed b! the Co%%ission "nde$ S"bsetion5*.2 o$ S"bsetion 5*.* o$ Setion 73 of this Code# shall afte$ d"e notie and hea$in be&"ilt! of onte%'t of the Co%%ission. S"h 'e$son shall be fined in s"h $easonable

a%o"nt as the Co%%ission %a! dete$%ine# o$ when s"h fail"$e o$ $ef"sal is a lea$ and

o'en defiane of the Co%%issions o$de$# deision o$ su!oena# shall be detained "nde$an a$$est o$de$ iss"ed b! the Co%%ission# "ntil s"h o$de$# deision o$ su!oena is

o%'lied with.chan robles virtual la librar!

SEC. 53. Administrati(e Sanctions. - 53.1. If# afte$ d"e notie and hea$in the

Co%%ission finds that /a0 The$e is a )iolation of this Code# its $"les# o$ its o$de$s /b0An! $e&iste$ed b$oke$ o$ deale$# assoiated 'e$son the$eof has failed $easonabl! to

s"'e$)ise# with a )iew to '$e)entin& )iolations# anothe$ 'e$son s"b>et to s"'e$)isionwho o%%its an! s"h )iolation /0 An! $e&ist$ant o$ othe$ 'e$son has# in a $e&ist$ation

state%ent o$ in othe$ $e'o$ts# a''liations# ao"nts# $eo$ds o$ do"%ents $eet onl! to theli%itations he$einafte$ '$es$ibed# i%'ose an! o$ all of the followin& santions as %a! be

a''$o'$iate in li&ht of the fats and i$"%stanes

/i0 S"s'ension# o$ $e)oation of an! $e&ist$ation fo$ the offe$in& of se"$ities

/ii0 A fine of no less than Ten tho"sand 'esos /P1;#;;;.;;0 no$ %o$e than One %illion

'esos /P1#;;;#;;;.;;0 'l"s not %o$e than Two tho"sand 'esos /P2#;;;.;;0 fo$ eah da!

of ontin"in& )iolation

/iii0 In the ase of a )iolation of Setions 1:.2# 2;# 23# 27 and 28# dis


45/54

53.*. The Co%%ission shall ha)e the 'owe$ to iss"e w$its of e6e"tion to enfo$e the

'$o)isions of this Setion and to enfo$e 'a!%ent of the fees and othe$ d"es olletible

"nde$ this Code.

SEC. 55. Settlement ffers. 55.1. At an! ti%e# d"$in& an in)esti&ation o$'$oeedin& "nde$ this Code# 'a$ties bein& in)esti&ated and4o$ ha$&ed %a! '$o'ose in

w$itin& an offe$ of settle%ent with the Co%%ission.

55.2. ='on $eei't of s"h offe$ of settle%ent# the Co%%ission %a! onside$ the offe$based on ti%in the nat"$e of the in)esti&ation o$ '$oeedin and the '"bli inte$est.

55.*. The Co%%ission %a! onl! a&$ee to a settle%ent offe$ based on its findin&s that

s"h settle%ent is in the '"bli inte$est. An! a&$ee%ent to settle shall ha)e no le&al effet

"ntil '"blil! dislosed. S"h deision %a! be %ade witho"t a dete$%ination of &"ilt onthe 'a$t of the 'e$son %akin& the offe$.

55.3. The Co%%ission shall ado't $"les and '$oed"$es &o)e$nin& the filin $e)iew#

withd$awal# fo$% of $e>etion and ae'tane of s"h offe$s.

SEC. 57. Ci(il 9ia!ilities on Account of *alse Registration Statement. - 57.1. An! 'e$son

a


46/54

/f0 E)e$! sellin& sha$eholde$ who ont$ib"ted to and e$tified as to the a"$a!

of a 'o$tion of the $e&ist$ation state%ent# with $es'et to that 'o$tion of the $e&ist$ation

state%ent whih '"$'o$ts to ha)e been ont$ib"ted b! hi%.

/&0 E)e$! "nde$w$ite$ with $es'et to s"h se"$it!.

57.2. If the 'e$son who a


47/54

a"tho$i(ation# o$ ae'ts o$ delines an in)itation fo$ tende$ of a se"$it!# as the ase %a!

be# fo$ the da%a&es s"stained b! s"h othe$ 'e$son as a $es"lt of s"h at o$ t$ansation.

SEC. 5:. Ci(il 9ia!ility *or 5aniulation of Security Prices . - An! 'e$son whowillf"ll! 'a$tii'ates in an! at o$ t$ansation in )iolation of Setion 23 shall be liable to

an! 'e$son who shall '"$hase o$ sell an! se"$it! at a '$ie whih was affeted b! s"hat o$ t$ansation# and the 'e$son so in>"$ed %a! s"e to $eo)e$ the da%a&es s"stained as

a $es"lt of s"h at o$ t$ansation.

SEC. 7;. Ci(il 9ia!ility 8ith Resect to Commodity *utures Contracts and Pre$need

Plans. - 7;.1. An! 'e$son who en&a&es in an! at o$ t$ansation in willf"l )iolation of

an! $"le o$ $e&"lation '$o%"l&ated b! the Co%%ission "nde$ Setion 11 o$ 17# whih theCo%%ission deno%inates at the ti%e of iss"ane as intended to '$ohibit f$a"d in the offe$

and sale of '$e-need 'lans o$ to '$ohibit f$a"d# %ani'"lation# fititio"s t$ansations#

"nd"e s'e"lation# o$ othe$ "nfai$ o$ ab"si)e '$aties with $es'et to o%%odit! f"t"$e

ont$ats# shall be liable to an! othe$ 'e$son s"stainin& da%a&e as a $es"lt of s"h at o$t$ansation.

7;.2. As to eah s"h $"le o$ $e&"lation so deno%inated# the Co%%ission b! $"le shall

'$es$ibe the ele%ents of '$oof $eet of the )iolation# '"$hased o$ sold

se"$ities of the sa%e lass "nless s"h inside$# o$ s"h 'e$son in the ase of a tende$offe$# '$o)es that s"h in)esto$ knew the info$%ation o$ wo"ld ha)e '"$hased o$ sold at

the sa%e '$ie $e&a$dless of dislos"$e of the info$%ation to hi%.

71.2. An inside$ who )iolates S"bsetion 28.* o$ an! 'e$son in the ase of a tende$ offe$who )iolates S"bsetion 28.3 /a0# o$ an! $"le o$ $e&"lation the$e"nde$# b! o%%"niatin&

%ate$ial non-'"bli info$%ation# shall be >ointl! and se)e$all! liable "nde$ S"bsetion

71.1 with# and to the sa%e e6tent as# the inside$# o$ 'e$son in the ase of a tende$ offe$# to

who% the o%%"niation was di$eted and who is liable "nde$ S"bsetion 71.1 b!$eason of his '"$hase o$ sale of a se"$it!.

SEC. 72. 9imitation of Actions. - 72.1. No ation shall be %aintained to enfo$e an!

liabilit! $eated "nde$ Setion 57 o$ 58 of this Code "nless b$o"&ht within two /20 !ea$s

afte$ the diso)e$! of the "nt$"e state%ent o$ the o%ission# o$# if the ation is to enfo$e aliabilit! $eated "nde$ S"bsetion 58.1/a0# "nless b$o"&ht within two /20 !ea$s afte$ the

)iolation "'on whih it is based. In no e)ent shall an! s"h ation be b$o"&ht to enfo$e a


48/54

liabilit! $eated "nde$ Setion 57 o$ S"bsetion 58.1 /a0 %o$e than fi)e /50 !ea$s afte$ the

se"$it! was !ona fideoffe$ed to the '"bli# o$ "nde$ S"bsetion 58.1 /b0 %o$e than fi)e

/50 !ea$s afte$ the sale.

72.2. No ation shall be %aintained to enfo$e an! liabilit! $eated "nde$ an! othe$

'$o)ision of this Code "nless b$o"&ht within two /20 !ea$s afte$ the diso)e$! of the fatsonstit"tin& the a"se of ation and within fi)e /50 !ea$s afte$ s"h a"se of ationa$"ed.

SEC. 7*. Amount of Damages to !e A'arded. - 7*.1. All s"its to $eo)e$ da%a&es

'"$s"ant to Setions 57# 58# 59# 5:# 7; and 71 shall be b$o"&ht befo$e the Re&ional T$ial

Co"$t# whih shall ha)e e6l"si)e >"$isdition to hea$ and deide s"h s"its. The Co"$t ishe$eb! a"tho$i(ed to awa$d da%a&es in an a%o"nt not e6eedin& t$i'le the a%o"nt of the

t$ansation 'l"s at"al da%a&es.

E6e%'la$! da%a&es %a! also be awa$ded in ases of bad faith# f$a"d# %ale)olene o$

wantonness in the )iolation of this Code o$ the $"les and $e&"lations '$o%"l&atedthe$e"nde$.

The Co"$t is also a"tho$i(ed to awa$d atto$ne!s fees not e6eedin& thi$t! ercentum

/*;0 of the awa$d.

7*.2. The 'e$sons s'eified in Setions 57# 58# 59# 5:# 7; and 71 he$eof shall be >ointl!

and se)e$all! liable fo$ the 'a!%ent of da%a&es. Howe)e$# an! 'e$son who beo%es

liable fo$ the 'a!%ent of s"h da%a&es %a! $eo)e$ ont$ib"tion f$o% an! othe$ 'e$sonwho# if s"ed se'a$atel!# wo"ld ha)e been liable to %ake the sa%e 'a!%ent# "nless the

fo$%e$ was &"ilt! of f$a"d"lent $e'$esentation and the latte$ was not.

7*.*. Notwithstandin& an! '$o)ision of law to the ont$a$!# all 'e$sons# inl"din& the

iss"e$# held liable "nde$ the '$o)isions of Setions 57# 58# 59# 5:# 7; and 71 shallont$ib"te e"died.

SEC. 73. Cease and Desist rder. 73.1. The Co%%ission# afte$ '$o'e$ in)esti&ation o$

)e$ifiation# motu rorio)o$ "'on )e$ified o%'laint b! an! a&&$ie)ed 'a$t!# %a! iss"ea ease and desist o$de$ witho"t the neessit! of a '$io$ hea$in& if in its >"d&%ent the at

o$ '$atie# "nless $est$ained# will o'e$ate as a f$a"d on in)esto$s o$ is othe$wise likel! to

a"se &$a)e o$ i$$e'a$able in>"$! o$ '$e>"die to the in)estin& '"bli.

73.2. =ntil the Co%%ission iss"es a ease and desist o$de$# the fat that an in)esti&ationhas been initiated o$ that a o%'laint has been filed# inl"din& the ontents of the

o%'laint# shall be onfidential. ='on iss"ane of a ease and desist o$de$# the


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Co%%ission shall %ake '"bli s"h o$de$ and a o'! the$eof shall be i%%ediatel!

f"$nished to eah 'e$son s"b>et to the o$de$.

73.*. An! 'e$son a&ainst who% a ease and desist o$de$ was iss"ed %a!# within fi)e /50da!s f$o% $eei't of the o$de$# file a fo$%al $eetion to the '"bli dislos"$e of info$%ation ontained the$ein# statin& the &$o"nds

fo$ s"h ob>etion# and the Co%%ission %a! hea$ ob>etions as it dee%s neessa$!. The

Co%%ission %a!# in s"h ases# %ake a)ailable to the '"bli the info$%ation ontainedin an! s"h a''liation# $e'o$t# o$ do"%ent onl! when a dislos"$e of s"h info$%ation

is $e


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he$ein '$o)ided# the Co%%ission %a! '$o)ide assistane in ao$dane with this

s"bsetion# inl"din& the dislos"$e of an! info$%ation filed with o$ t$ans%itted to the

Co%%ission# if the $e"d&%ent in one o$ %o$e ations# a total a%o"nt in e6ess of his at"al da%a&es on

ao"nt of the at o%'lained ofPro(ided)That e6e%'la$! da%a&es %a! be awa$ded in


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ases of bad faith# f$a"d# %ale)olene o$ wantonness in the )iolation of this Code o$ the

$"les and $e&"lations '$o%"l&ated the$e"nde$.

SEC. 8;. ;udicial Re(ie' of Commission rders. - An! 'e$son a&&$ie)ed b! an o$de$ of

the Co%%ission %a! a''eal the o$de$ to the Co"$t of A''eals b! 'etition fo$ $e)iew inao$dane with the 'e$tinent '$o)isions of the R"les of Co"$t.

SEC. 81. :alidity of Contracts. - 81.1. An! ondition# sti'"lation# '$o)ision

bindin& an! 'e$son to wai)e o%'liane with an! '$o)ision of this Code o$ of an! $"le o$$e&"lation the$e"nde$# o$ of an! $"le of an E6han&e $e


52/54

its $"les o$ $e&"lations# the Co%%ission %a! lassif! 'e$sons# se"$ities# and othe$

%atte$s within its >"$isdition# '$es$ibe diffe$ent $e


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offie$ is an alien# he shall in addition to the 'enalties '$es$ibed# be de'o$ted witho"t

f"$the$ '$oeedin&s afte$ se$)ie of sentene.

SEC. 83. Transitory Pro(isions. - The Co%%ission# as o$&ani(ed "nde$ e6istin& laws#shall ontin"e to e6ist and e6e$ise its 'owe$s# f"ntions and d"ties "nde$ s"h laws and

this Code Pro(ided) That "ntil othe$wise %andated b! a s"bse


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SEC. 89."ffecti(ity. - This Code shall take effet fifteen /150 da!s afte$ its '"bliation in

the fficial

Date post:	04-Jun-2018
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RA 08799 Securities Regulation Code

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