SEC ends antiquated share split system

The Securities and Exchange Commission (SEC) has ordered all publicly-listed companies to stop the classification of common shares, which was previously imposed to monitor foreign ownership limits, to ensure efficiency in executing and settling equity trades.

- By JAMES A. LOYOLA

The Commission on Thursday, Aug. 7, issued SEC Memorandum Circular (MC) No. 10, Series of 2025, providing for the Repeal of the Rules Allowing the Trading of “B” Shares on the Regular Board and Requiring Buyers to Accept either “B” or “A” Certificates.

The guidelines repeal an old rule issued by the Commission back in 1973 to monitor strict compliance with the 40-percent foreign ownership limit of stocks. Under the 1973 rules, Class A shares can only be issued to Filipino citizens, while Class B shares may be issued to Filipinos and foreigners alike.