Amendments to the Rules Fixing the Amount of Paid-up Capital Stock of Stock Brokerage Firms and Their Surety Bonds

January 17, 1994 SEC-BED * MEMORANDUM CIRCULAR NO. 01-94 TO : All Concerned SUBJECT : Amendments to the R ule s Fixing the Amount of Paid-up Capital Stock of Stock Brokerage Firms and their Surety Bonds 1. Section 1 of the Rules Fixing the Amount of Paid-up Capital of Stock Brokerage Firms and their Surety Bonds, dated October 9, 1973, as amended by Memorandum Circular No. 13, Series of 1987, is hereby further amended to read as follows: LexLib "1. Henceforth every person applying for a license to act as stockbroker/dealer must have a paid-up capital of at least TEN MILLION (P10,000,000.00) PESOS. Brokers/dealers who are currently registered or licensed as such but whose paid up capital are less than P10,000,000.00 may be allowed to continue to operate provided that their paid-up capital shall be increased to P10,000,000.00 on or before July 31, 1994. All required paid-up capital in cash or property shall at all times be kept unimpaired. The SEC shall pass upon the acceptability of properties contributed as part of paid-up capital. However, the following properties shall not be accepted as contribution to the paid-up capital: 1. Exchange seat 2. Properties the use of which is not related to brokerage business 2. Section 2 of said Rules is hereby amended to read as follows: "2. The amount of surety bonds required to be filed pursuant to Section 19 of the Revised Securities Act by stock brokers and dealers is fixed at not less than Five Hundred Thousand Pesos (P500,000.00) for brokers and not less than One Hundred Thousand (P100,000.00) for dealers. Such bond or bonds shall be in favor of the Government of the Republic of the Philippines, and conditioned upon the faithful compliance with the provisions of the Revised Securities Act and its implementing rules and regulations by said brokers and dealers and by all their salesmen while acting for them. 3. These amendments shall take effect fifteen (15) days from publication once a week in the newspaper of general circulation in the Philippines. LibLex (SGD.) ROSARIO N. LOPEZ Chairman