THE Securities and Exchange Commission (SEC) has revised the approval process for securities lending agreements, reducing processing time and compliance costs in a move aimed at supporting market development.
The commission said it had cleared revised guidelines that designate the Philippine Stock Exchange (PSE) as the sole reviewing and pre-clearing body for Master Securities Lending Agreements (MSLAs) and accession agreements under multilateral MSLAs.
The change eliminates the need for SEC pre-clearance and certification before registration with the Bureau of Internal Revenue (BIR), cutting the processing period for MSLA registrations to five working days from seven days.
Processing of accession agreements, meanwhile, will be completed within one working day.
The revised framework also removes the SEC processing and certification fee of P5,030, lowering compliance costs for market participants.
Under the new arrangement, the PSE will function as a one-stop shop for applicants by receiving documents and fees, coordinating reviews and transmitting pre-cleared agreements to the BIR.
The exchange will also assume responsibility for assigning reference numbers required for BIR registration, a function previously handled by the SEC.
The regulator said copies of endorsed and transmitted documents would continue to be furnished to the SEC to ensure regulatory oversight and post-audit monitoring in accordance with existing securities borrowing and lending rules.
Securities borrowing and lending transactions allow investors to temporarily borrow shares, a key mechanism supporting short-selling activities and improving market liquidity.
The SEC said the streamlined process forms part of broader efforts to strengthen market infrastructure and make participation in securities lending transactions more efficient for investors and other market participants. NAZYLEN JOY MABANGLO
