PSE sanctions ABS-CBN

MANILA, Philippines — The Philippine Stock Exchange (PSE) has sanctioned ABS-CBN Corp. for multiple violations of the rules and regulations of disclosure.

The PSE yesterday said it imposed sanctions on ABS-CBN for failure to comply with at least five provisions of Article VII of the Consolidated Listing and Disclosure Rules of the Exchange.

“Pursuant to Article VIII, Section 4 on Publication of Penalties Assessed under the Consolidated Listing and Disclosure Rules of the Exchange, as amended (the Rules), please be informed that the Exchange has imposed on the listed company mentioned below corresponding sanctions for failure to comply with the requirements under the Rules,” PSE said.

The PSE said ABS-CBN violated Section 1 of the Disclosure Rules mandating all listed firms to adhere to the full, fair, timely and accurate disclosure of material information. Such a principle, it states, applies to all the disclosure requirements of the PSE.

The PSE also said ABS-CBN breached Section 4.1 requiring listed firms to disclose to the local bourse any material information or corporate act within 10 minutes from receipt of the details. It provides that disclosures be made to the PSE first prior to their release to news outlets.

“The original copy of the disclosure must be delivered to the Exchange within 24 hours from the time of initial disclosure,” the provision read.

Further, the PSE flagged ABS-CBN for violating Section 4.2 prohibiting listed firms from relaying material information to any person, unless they are ready to disclose it to the local bourse.

Also, the PSE said the network broke Section 4.3 instructing listed firms to report any and all developments that impact financial standing, market position and price of securities.

Last, the local bourse said ABS-CBN violated Section 16 of the Disclosure Rules directing listed firms to update prior statements made inaccurate by subsequent events. Similar to Section 4.1, the disclosure must be reported to the PSE within 10 minutes from receipt of updated details.

In 2021 ABS-CBN had to stop airing on free TV when its bid for a franchise renewal was denied by Congress. In turn, advertising revenues of the network giant dropped by 25 percent to P5.29 billion, from P7.06 billion in 2020.

In response, the Lopez-owned firm has started moving its materials to digital platforms, entering into agreements with Netflix, Viu, WeTV and iQIYI for shows and with Spotify for music.