DW Capital gets TRO against suspension order

MANILA, Philippines — DW Capital Inc. (DWCI), a stock brokerage company, has scored victory against the Gaisano family and the Philippine Stock Exchange (PSE) after obtaining a temporary restraining order against the suspension order issued by the Capital Markets Integrity Corp. (CMIC), a unit of the PSE.

The TRO effectively lifts the suspension against DWCI allowing it to again trade all listed securities.

DWCI has obtained a TRO from Branch 145 of the Makati City regional trial court dated Nov. 29 granting its application for a preliminary injunction. Upon DWCI’s posting of the injunction bond, the court issued the Writ of Preliminary Injunction on Dec. 4, 2017.

The resolution states that the injunction restrains, prohibits and enjoins CMIC from continuing with the implementation of a CMIC suspension order dated Aug. 10, 2017 and continuing to deny DWCI’s access to the PSE trading systems.

CMIC suspended DWCI for allegedly selling as much as P2.6 billion of its clients’ shares without their knowledge.

Valerie Gaisano-Sebastian of the prominent Cebu-based Gaisano clan filed a complaint on the matter.

Gaisano-Sebastian said DWCI had committed unauthorized, fraudulent and deceitful acts when it sold the complainant’s shares without her knowledge but DWCI said the sale had full knowledge of the client.

In a separate circular dated Dec. 5, 2017, PSE president and CEO Ramon Monzon said the Exchange has initiated disciplinary proceedings against DWCI and that during the proceedings, the brokerage company would remain under preventive suspension and would still have no access to the trading system or facilities of the PSE.

Furthermore, the PSE said that pursuant to a Dec. 5, 2017 resolution of the Securities and Exchange Commission en banc, the PSE has been mandated to take over the operations of DWCI and take all necessary actions to protect customer accounts including the preservation of the assets and books and records of DWCI.

“To enable the PSE to validate customer accounts and settle DW Capital’s liabilities to customers, all customers of DW Capital are requested to file with PSE within 30 days from the date of this notice, a notarized affidavit of claim with attached certified photocopies of two valid identification cards of the claimant and documents supporting the claim,” the PSE said in another memorandum dated Dec. 7, 2017.

DWCI is headed by president Derwin Ngo Wong.