The Securities and Exchange Commission on Monday asked the Philippine Stock Exchange and Capital Markets Integrity Corp. to probe the stock transactions of PLDT Inc. ahead of the public disclosure on P48-billion budget overrun Friday.
The SEC said in a statement it ordered the PSE and CMIC to submit initial reports on their investigation into the trading activities that resulted in the sudden and sharp decline in the share prices of PLDT before the official disclosure of the “budget overruns.”
It said the reported budget overrun and selloff in PLDT shares before the official disclosure was made “are areas of concern” for the corporate regulator.
“In this light, the SEC has immediately commenced an inquiry into the matter,” the SEC said.
PLDT reported Friday it was undertaking management reorganization amid a P48-billion budget overrun incurred over the past four years. The disclosure was made after the trading hours, but the company’s share price was already declining significantly before the close of trading.
PLDT shares fell 4.1 percent Friday to close at P1,478. The stock plunged by another 19.35 percent on Monday to settle at P1,197.
Meanwhile, the SEC said it also ordered PLDT to clarify its disclosures in relation to statements on the nature of the P48-billion expenditure overrun.
The SEC said its Markets and Securities Regulation Department would also closely monitor the investigation and would continue to conduct a parallel, independent inquiry into the matter to safeguard the interest of the investing public.
CMIC acts as the independent audit, surveillance and compliance arm of PSE in line with its mandate to reinforce the confidence of the investing public in capital market institutions. As a self-regulatory organization, it is tasked to enforce Republic Act No. 8799 or the Securities Regulation Code and the pertinent rules and regulations.
Among its powers and functions is to investigate and resolve violations by trading participants of the securities law and trading-related irregularities and unusual trading activities involving issuers.