Securities Regulation Code Flashcards
Position of the sec
a chairperson and 4 commissioners
What are the four principal departments of the sec
- The market and securities regulation department
- The corporate governance & finance department
- The company registration and monitoring department
- The enforcement and investor protection department
It develops to registration criteria for all market participants and supervises them to ensure compliance with registration requirements and endorses in fractions of the code and rules and regulations to the enforcement and investor protection department. It registers equity securities and debt instruments or recommends their exemption from registration before they are sold, offered for sale, or distributed to the public and ensures that full, timely and accurate information is available about the set securities
market and securities regulation department
Mutual funds, including exchange-traded funds, membership certificates, club shares, both proprietary and non-proprietary, and timeshares before they are offered for sale or sold to the public and ensures that adequate information is available about this insecurities. It also ensures that investors have access to all material disclosures regarding the said offering and the securities of all public companies. It also monitors compliance by the above verse with the code and rules and regulations adopted thereunder and compliance of financing, lending conditions with existing laws
the corporate governance & finance department
It registers domestic corporations, partnerships and association, including representative offices and foreign corporations intending to do business in the philippines. It also supervises and monitors such entities relative to their compliance with laws administered by the commission
the company registration and monitoring department
It ensures compliance by all market participants, issuers and individuals, and takes appropriate and forcement action against them from illegal in fraction of the code and other relevant laws administered by the commission
The enforcement and investor protection department
True or false. No securities shall be sold or offered for sale or distributed by any person or entity within the philippines unless such securities or duly registered with the sec
true
Upon filing of the registration statement of securities, the issuer shall pay the commission a fee of not more than ______________ of the maximum aggregate price at which such securities are proposed to be offered
1/10 of 1%
Within _________ after the date of filing of the registration statement or by such later date to which the issuer has consented, the sec shall declare the registration statement effective or rejected, unless the applicant is allowed to amend registration statement
45 days
True or false. Insolvency of the issuer is a ground for rejection or revocation of registration of securities
true
Grounds for rejection or revocation of registration of securities
(IVF3IM)
- Insolvency
- Violation of the code
- Fraudulent transactions
- False material facts in any prospectus
- Failed to comply with any requirements of the commission
- Incomplete or inaccurate registration statement; misleading
- Moral turpitude
Grounds for suspension of registration of securities (IR)
- Information contained in the registration statement is misleading; sale or offering for sale of the security tend to work a fraud
- Refusal to furnish information required by the sec
These are shares, participation or interest in a corporation or in a commercial enterprise or profit-making venture and evidenced by a certificate, contract or instruments
securities
Exempted transactions from requirement of registration with sec
ILIDCSCBSE20Q
insolvency or bankruptcy
liquidation of debt
isolated transaction
stock dividend or other distribution of surplus
sale of capital stock to its shareholders exclusively where no commission is paid
and time mortgaged together with all the bones or note secured thereby or sold to a single purchaser at a single sale
conversion
brokers transaction
subscription before incorporation
existing securities; no commission
to fewer than 20 persons in the philippines during a 12-month period
to qualified buyers
True or false. The own shares of stocks of a bank is not required to be registered with the sec
false; all securities issued to the public which are not regulated or supervised by another regulatory body shall be required to register to sec
It means a publicly announced intention by a person acting alone or in concert with other persons to acquire outstanding equity securities of a public company as defined in src or outstanding equity securities of an associate or related company of such public company which controls the said public company
tender offer
It means a publicly announced intention by an issuer to reacquire any of its own class of equity securities or by an associate of such a sugar to acquire such securities
issuer tender offers