The change requires firms to amend their Articles of Incorporation, with trades during the transition settled strictly according to the class purchased.
The SEC issued Memorandum Circular No. 10 on August 7, ending a system in place since 1973 to enforce the 40 percent foreign ownership cap.
Under the old rule, Class “A” shares were reserved for Filipinos, while Class “B” shares could be held by both Filipinos and foreigners.
Regulators said the classification caused price gaps between share classes and slowed trade settlements.
Advances in the PSE’s trading technology now allow real-time tracking of foreign ownership, making the old framework unnecessary.
The SEC said the move aims to improve efficiency while keeping foreign ownership limits intact.
The rule takes effect upon publication in the Official Gazette or two national newspapers.
—Edited by Miguel R. Camus
