SEC readies reforms to boost capital market

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April 6, 2025 | 12:00am

MANILA, Philippines — The Securities and Exchange Commission (SEC) is readying reforms to help further unlock the potential of the country’s capital market.

SEC commissioner McJill Bryant Fernandez said the commission is updating the 2019 Code of Corporate Governance to be attuned to international standards and recent global developments.

The updates are aimed at improving transparency in the Philippine capital market.

To address market integrity issues, Fernandez said that rules governing credit rating agencies are also being reviewed by the SEC.

“There is much potential in our capital market, and the SEC, as a regulator, is more than willing to support unlocking these potentials through progressive regulatory reforms and continued engagement with our stakeholders,” Fernandez said.

Fernandez said the SEC has undertaken recent initiatives in line with the government’s push to promote ease of doing business and attract more foreign investments.

He said these initiatives include the establishment of a dedicated unit to expedite authorized capital stock increase processing and a green lane unit to fast-track the registration and monitoring of foreign investments.

Fernandez said the SEC has also streamlined the registration process, resulting in an average of at least a 30-day review period compared to its mandatory 45-day limit.

Priority sectors and key industries such as agriculture, health care, real estate and energy are targeted to benefit from the simplified registration process as well, enabling them to drive economic growth further.

The SEC also supports the passage of the Capital Markets Efficiency Promotion Act, which aims to decrease the stock transaction tax to 0.1 percent from 0.6 percent and lower the documentary stamp tax on the original issue of shares of stocks to 0.75 percent from the current one percent.

The commission said this is expected to not only minimize transaction costs, but also to enhance the country’s regional competitiveness, aligning with the prevailing rates of the Philippines’ ASEAN+6 peers.

The SEC earlier assured the public of a stronger commitment to implementing policies and reforms that would further boost the capital market, strengthen the corporate sector and support the country’s overall economic growth.

“As we embark on our 89th year, we will remain steadfast in transforming the capital market to support the growth of a sound and dynamic economy,” SEC chairperson Emilio Aquino said.