MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) will initiate delisting proceedings against Abra Mining and Industrial Corp. after the Securities and Exchange Commission (SEC) found that the company and some of its officials had illegally sold unissued and unlisted shares over a five-year period.
“With the SEC Markets and Securities Regulation Department’s confirmation that there were indeed illegally issued shares circulating on the market and its resolution revoking Abra Mining’s registration statement and corresponding permit to sell securities, the PSE is left with no alternative except to maintain the trading suspension on Abra Mining shares and proceed with the initiation of delisting proceedings pursuant to its involuntary delisting rules,” the market operator said in a statement.
In a decision promulgated on April 8, the SEC Markets and Securities Regulation Department (MSRD) found Abra Mining guilty of violating Section 26 of the Securities Regulation Code (src) and Section 61 of the Revised Corporation Code (RCC).
The SEC said illegal issuances of the company’s shares totaling 169.05 billion shares covering 474 stock certificates were found to have been made from 2015 to 2019.
The illegally issued shares were lodged and traded on the Philippine Stock Exchange in numerous transactions.
The SEC said Section 26 of the src states that it is unlawful for any person, directly or indirectly, to employ any scheme to defraud, or engage in any act or course of business, which would operate as a fraud or deceit upon any person.
Section 61 of the RCC, meanwhile, provides that stocks shall not be issued for a consideration less than the par or issued price thereof.
On top of administrative sanctions, the MSRD likewise revoked Abra Mining’s registration statement and corresponding certificate of permit to sell.
In view of SEC’s findings contained in its April 8, 2024 decision, the PSE said minority stockholders of Abra Mining may consult individually or as a group their counsel and seek legal advice on available remedies under existing laws, including Republic Act No. 11765 or the Financial Products and Services Consumer Protection Act (FPSCPA).