Saturday, June 23, 2007 Market players seek reforms in RP laws
WHILE the country’s capital market is at an all-time high, major players in the sector are asking for policy reforms that will leave investors more room.
Philippine Stock Exchange president and chief executive officer Francisco Ed. Lim said the government has to remove legal restrictions and leave the market with “minimum intervention.”
He said Congress, particularly the Senate, is slow to approve proposed laws supposedly to correct an “obsolete legal framework” that is a “stumbling block” to further economic growth.
During a panel discussion on capital markets development at the Euro-money’s 2nd Philippine Investment Conference, Lim cited the bill seeking to create a credit information bureau system and the proposed Corporate Recovery Act among the pending proposals.
Education
He also raised the need to educate legislators so Congress would come up with legislation that will support further development of the capital markets.
Trading at the Philippine Stock Exchange is at a record-breaking run. The composite index hit 3,701.16 yesterday while the value of all traded shares was 14.3 billion worth P19.4 billion.
Lim said the stock exchange is already “with-in the radar” of foreign investors.
Dr. Reza Baqir, International Monetary Fund resident representative for the Philippines, said he hoped that foreign interest in the country’s stock exchange would turn into real investment or those that will lead to the establishment of new factories and creation of more jobs.
Less intervention
Meanwhile, Securities and Exchange Commission (SEC) chairperson Fe Barin said the SEC chooses to let the market move on its own with minimum intervention.
“We (SEC) stay on the sidelines but make sure laws are followed,” Barin said during the same panel discussion at the Euro-money conference.
Wilfred Son Keng Po of AIG Global Investment Corp. pointed out, though, that government regulators should exert additional efforts not only in requiring corporate disclosures but also in monitoring trading movements to prevent stock manipulation.
Barin said the market regulatory section is closely monitoring daily trading for abnormal movements. She added that when regulators see abnormal movements in the trading of stocks, these developments are promptly investigated. (LAP)
