Rules Governing the Dissemination of News, Tips or Rumors About the Issuer Corporation or its Securities_1

September 3, 1969 RULES GOVERNING THE DISSEMINATION OF NEWS, TIPS OR RUMORS ABOUT THE ISSUER CORPORATION OR ITS SECURITIES For the purpose of maintaining sound and equitable trading in securities and to minimize undue speculation, the Commission, pursuant to the powers vested in it under existing laws, hereby requires all issuers, brokers, dealers and salesmen of securities to observe strictly the following rules: 1. No advertisement or publication in any newspaper or in radio or television or by letters, circulars or notices tending directly or indirectly to promote the sale of, or subscription for, the securities of an issuer corporation shall be made without the prior approval of the Securities and Exchange Commission. 2. No press release or newspaper report about the issuer corporation its business operations or activities shall be issued without factual basis nor presented in a manner that will tend to mislead the public, and should there be any newspaper report or news item coming from sources other than the issuer or its officers, which is not supported by the true facts or is misleading, the issuer shall take immediate and effective steps to correct the same. 3. No director officer of, or person connected with, the issuer corporation shall release or leak out any news or information about such issuer corporation tending directly or indirectly to promote the sale of, or subscription for, its securities unless he is authorized to do so by the board of directors and only after such news or information shall have been passed upon by the Securities and Exchange Commission. 4. No broker, dealer or salesmen shall give out such news or information to any customer or person unless he is certain that it has been cleared by the Securities and Exchange Commission. Neither shall he furnish any person any tip, rumor or hint of such news or information with the qualification that it is unofficial or that it has not yet been passed upon by the Securities and Exchange Commission. Any broker, dealer or salesman violating any of the foregoing requirements shall be deemed to have demonstrated his unworthiness to transact the business of broker, dealer or salesman, which shall be a ground for the suspension or revocation of his license. 5. Violation of any of the requirements contained in paragraphs 1, 2 and 3 of these rules shall be penalized by a fine in such sum as the Commission may impose under Republic Act No. 1143. 6. These rules shall take effect fifteen (15) days after publication in the Official Gazette. (SGD.) MARIANO G. PINEDA Securities and Exchange Commissioner APPROVED: September 8, 1969 (SGD.) LEONIDES S. VIRATA Secretary of Commerce and Industry