Republic Act no.

8799
AMENDED IMPLEMENTING RULES AND
REGULATIONS OF THE SECURITIES REGULATION
CODE

Chapter I
SRC Rule 2
Any doubt in the interpretation of these Rules shall be
resolved by the Commission in a manner which would establish a
socially conscious free market that regulates itself, encourage the
widest participation of ownership in an enterprise, enhance the
democratization of wealth, promote the development of the capital
market, protect investors, ensure full and timely disclosure of
material information, and/or minimize, if not eliminate, insider
trading and other fraudulent or manipulative devices and practices
which create distortions in the free market.
 Republic Act no. 8799
AMENDED IMPLEMENTING RULES AND
REGULATIONS OF THE SECURITIES REGULATION
CODE

Chapter I
SRC Rule 3
"Securities" are shares, participation or interests in a
corporation or in a commercial enterprise or profit-making venture
and evidenced by a certificate, contract, instruments, whether
written.
 Securities are traded in public market by companies/businesses
to raise capital.
 Types of Securities

1.) Debt Securities
 Investment that involves borrowing money
 Usually government and corporate issued. This is because
businesses and organizations need money to grow and expand
so they borrow money from the public and pay them interest
on the amount borrowed
Example: Bond
 Types of Securities

2.) Equity Securities
 represents ownership of a company such as a stock. If you own
shares of a company, you can profit off of an increase in share price
and dividends.

3.) Derivatives
 are a slightly different type of security because their value is based
on an underlying asset that is then purchased and repaid, with the
price, interest, and maturity date all specified at the time of the
initial transaction.
 derivative is a contract whose value is based on an underlying
something else
 it’s a contract that derives its value from changes in the price of
something else
 Types of Securities

Three Products that form the basis for the entire
derivatives market:
1.) Future
2.) Option
3.) Swap
 Clearing Agency

-means any person that provides a facility to a Broker dealer,
salesman, associated person of a Broker dealer or another clearing
agency and whose facility performs any or all of the following
activities:
 makes deliveries in connection with transactions in securities;
 reduces the number of settlements of securities transactions or
allocates securities settlement responsibilities; and
 provides for the central handling of securities so that transfers,
loans, pledges and similar transactions can be made by
bookkeeping entry, or otherwise, to facilitate the settlement of
securities transactions without physical delivery of securities
certificates.
 Securities and Exchange
Commission

 is a government created organization that regulates the buying
and selling of stocks and bonds in order to protect investors
against fraud.
 SEC’s mission is to sustain a growing economy that produces
jobs, improving living standards and protects investors.
 SEC is responsible to be sure the average investor has the same
information as the people who manage and run public
companies
 SEC is like the police force for Congress’s laws regarding stocks
and bonds. All companies are required to file reports including
financial and other information about the company with the
SEC each quarter and each year
 Securities and Exchange
Commission

 SEC reviews the information to ensure all companies abiding
by the laws. This information is filed with the SEC and is
publicly available. The information is accessible to investors
who purchase or own stocks. This way people have basic
information to make decisions about buying, selling or holding
a particular stock
 Securities and Exchange
Commission

SRC Rule 4
These Rules shall be implemented by the Commission as a
collegial body composed of a Chairperson and four (4)
Commissioners.
1.) The Commission has five (5) principal departments, each to be
headed by a director. Its core function of capital market regulation
shall be performed by the:
 Market Regulation Department
 Corporation Finance Department
 Non-traditional Securities and Instruments Department
 Company Registration and Monitoring Department
 Compliance and Enforcement Department
 Securities and Exchange
Commission

2.) The Commission shall have support services departments,
namely:
 Human Resource and Administrative Department
 Economic Research and Information Department
 Financial Management Department

3.) The Commission shall have special offices, namely:

 Office of the General Counsel
 Office of the General Accountant
 Securities and Exchange
Commission

4.) The Commission shall have Extension Offices in key cities, each
to be headed by a Director. The Extension Offices shall perform
company registration, supervision, monitoring and other
delegated functions of the Commission within its geographical
jurisdiction. The Directors shall execute the programs of the
Commission in their respective geographical jurisdictions, subject
to the supervision of the Commission.
5.) The Commission shall hold regular meetings at least once a
week on a day and time fixed by it. Special meetings may also be
called as often as may be necessary by the Chairperson or upon the
request of three (3) Commissioners. In such cases, the
Commissioners shall be given notice of the meeting, and the
presence of three (3) Commissioners shall constitute a quorum. In
the absence of the Chairperson, the most senior Commissioner
present shall act as the presiding officer of the meeting.
 Securities and Exchange
Commission

6.) The Commission may, for purposes of efficiency, delegate any
of its functions to an individual Commissioner, any department or
office of the Commission or any staff member of the Commission
except its review or appellate authority and its power to adopt,
alter and supplement any rule or regulation.

7.) The Commission, motu proprio or upon a petition filed by an

interested party, may review any order, resolution, decision or
action of any of its departments, offices, individual Commissioner,
or staff member of the Commission.
 Registration Statement

-is a prospectus filed with the SEC that divulges a whole lot o'
information about a company.
-prospectus outlines all the information that the SEC deems is key
to the offering.