â€œIf you say [the two boards] get consolidated, and you now have a tighter set of compliance rules, maybe weâ€™ll have to put a provision where there is a transition period for [SME firms] to move up to higher compliance rules,â€� Hans B. Sicat, Philippine Stock Exchange (PSE) president and chief executive, told reporters in a briefing late Wednesday.
â€œI donâ€™t think you can immediately — from a fairness perspective — have them comply with the new rules,â€� Mr. Sicat said.
The SME board currently only has two members: information technology firm iRipple, Inc., and lending company Makati Finance Corp.
Requirements for those listed on the SME board could include the submission of a comprehensive five-year business plan and the requirement that firms have at least 500 stockholders, a three-year minimum operating history, a market capitalization of at least P250 million, and a minimum authorized capital of P100 million, draft rules show.
The local bourse is looking to merge the SME and second boards to improve investor protection.
In the meantime, the PSE is accepting public comments on the proposed board until today instead of the original Aug. 10 deadline in light of the bad weather that hit Metro Manila and surrounding provinces last week.
â€œThe comments [weâ€™ve been getting] have a wide range, depending on
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