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    Chapter 1 of SRC Code PH

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    Jm Talatala
    This document is the Securities Regulation Code of the Philippines. It establishes a free market for securities that protects investors through full disclosure and prevents manipulation. The Code defines key terms related to securities like shares, brokers, dealers, insiders, and underwriters. It also identifies the types of financial instruments that are considered securities, such as stocks, bonds, and derivatives. The goal of the Code is to develop the capital market while balancing investor protection and participation in business ownership.

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    Chapter 1 of SRC Code PH

    Uploaded by

    Jm Talatala
    44 views2 pages
    This document is the Securities Regulation Code of the Philippines. It establishes a free market for securities that protects investors through full disclosure and prevents manipulation. The Code defines key terms related to securities like shares, brokers, dealers, insiders, and underwriters. It also identifies the types of financial instruments that are considered securities, such as stocks, bonds, and derivatives. The goal of the Code is to develop the capital market while balancing investor protection and participation in business ownership.

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    This is the Chapter 1 of SRC code of the Philippines

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    Chapter 1 of Src Code Ph

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    This document is the Securities Regulation Code of the Philippines. It establishes a free market for securities that protects investors through full disclosure and prevents manipulation. The Code defines key terms related to securities like shares, brokers, dealers, insiders, and underwriters. It also identifies the types of financial instruments that are considered securities, such as stocks, bonds, and derivatives. The goal of the Code is to develop the capital market while balancing investor protection and participation in business ownership.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    44 views2 pages

    Chapter 1 of SRC Code PH

    Uploaded by

    Jm Talatala
    This document is the Securities Regulation Code of the Philippines. It establishes a free market for securities that protects investors through full disclosure and prevents manipulation. The Code defines key terms related to securities like shares, brokers, dealers, insiders, and underwriters. It also identifies the types of financial instruments that are considered securities, such as stocks, bonds, and derivatives. The goal of the Code is to develop the capital market while balancing investor protection and participation in business ownership.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    REPUBLIC ACT NO.

    8799 THE SECURITIES REGULATION CODE

    Be it enacted by the Senate and the House of Representative of the Philippines in the Congress
    assembled:

    CHAPTER I TITLE AND DEFINITIONS

    Section 1. Title. - This shall be known as "The Securities Regulation Code" Section 2. Declaration
    of State Policy. – The State shall establish a socially conscious, free market that regulates itself,
    encourage the widest participation of ownership in enterprises, enhance the democratization of
    wealth, promote the development of the capital market, protect investors, ensure full and fair
    disclosure about securities, minimize if not totally eliminate insider trading and other fraudulent
    or manipulative devices and practices which create distortions in the free market. To achieve these
    ends, this Securities Regulation Code is hereby enacted. Section 3. Definition of Terms. - 3.1.
    "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 or
    electronic in character. It includes: (a) Shares of stocks, bonds, debentures, notes evidences of
    indebtedness, asset-backed securities; (b) Investment contracts, certificates of interest or
    participation in a profit sharing agreement, certifies of deposit for a future subscription; (c)
    Fractional undivided interests in oil, gas or other mineral rights; (d) Derivatives like option and
    warrants; (e) Certificates of assignments, certificates of participation, trust certificates, voting trust
    certificates or similar instruments (f) Proprietary or nonproprietary membership certificates in
    corporations; and (g) Other instruments as may in the future be determined by the Commission.
    3.2. "Issuer" is the originator, maker, obligor, or creator of the security. 3.3. "Broker" is a person
    engaged in the business of buying and selling securities for the account of others. 3.4. "Dealer"
    means many person who buys sells securities for his/her own account in the ordinary course of
    business. 3.5. "Associated person of a broker or dealer" is an employee therefor whom, directly
    exercises control of supervisory authority, but does not include a salesman, or an agent or a person
    whose functions are solely clerical or ministerial. 3.6. "Clearing Agency" is any person who acts
    as intermediary in making deliveries upon payment effect settlement in securities transactions. 3.7.
    "Exchange" is an organized market place or facility that brings together buyers and sellers and
    executes trade of securities and/or commodities. 3.8. "Insider" means (a) the issuer; (b) a director
    or officer (or any person performing similar functions) of, or a person controlling the issuer; gives
    or gave him access to material information about the issuer or the security that is not generally
    available to the public; (d) A government employee, director, or officer of an exchange, clearing
    agency and/or self-regulatory organization who has access to material information about an issuer
    or a security that is not generally available to the public; or (e) a person who learns such
    information by a communication from any forgoing insiders. 3.9. "Pre-need plans" are contracts
    which provide for the performance of future services of or the payment of future monetary
    considerations at the time actual need, for which plan holders pay in cash or installment at stated
    prices, with or without interest or insurance coverage and includes life, pension, education,
    interment, and other plans which the Commission may from time to time approve. 3.10.
    "Promoter" is a person who, acting alone or with others, takes initiative in founding and organizing
    the business or enterprise of the issuer and receives consideration therefor. 3.11. "Prospectus" is
    the document made by or an behalf of an issuer, underwriter or dealer to sell or offer securities for
    sale to the public through registration statement filed with the Commission. 3.12. "Registration
    statement" is the application for the registration of securities required to be filed with the
    Commission. 3.13. "Salesman" is a natural person, employed as such as an agent, by a dealer,
    issuer or broker to buy and sell securities. 3.14. "Uncertificated security" is a security evidenced
    by electronic or similar records. 3.15. "Underwriter" is a person who guarantees on a firm
    commitment and/or declared best effort basis the distribution and sale of securities of any kind by
    another company.

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