SEC Clears Up Rules on Exempt Transactions

The Securities and Exchange Commission (SEC) has issued a new memorandum detailing how firms can apply for exemption on securities registration to avoid confusion in public offering.

- Elijah Felice Rosales

Under Memorandum Circular 11 Series of 2025, the agency introduced a new provision under Rule 10.1.2 of the implementing rules and regulations of the Securities Regulation Code (SRC).

The provision outlines that no notice or payment of fee is needed for exempt transactions under Section 10.1 of the SRC.

However, if the issuer finds it necessary to seek confirmation if its transaction is exempted, it has to file an application for confirmation of exempt transaction. Likewise, the issuer must pay a fee equivalent to one-tenth of one percent of the issued value.