SEC Directs Declassification of Common Share

ON August 8 – The SEC released news regarding declassification of common share.

The Securities and Exchange Commission (SEC) has directed all listed companies to discontinue the classification of common shares previously imposed to monitor foreign ownership limits, to ensure efficiency in executing and settling equity trades.

The Commission on August 7 issued SEC Memorandum Circular (MC) No. 10, Series of 2025, providing for the Repeal of the Rules Allowing the Trading of “B” Shares on the Regular Board and Requiring Buyers to Accept either “B” or “A” Certificates.

The guidelines repeal an old rule issued by the Commission back in 1973 to monitor strict compliance with the 40% foreign ownership limit of stocks. Under the 1973 rules, Class A shares can only be issued to Filipino citizens, while Class B shares may be issued to Filipinos and foreigners alike.

Read more here -> https://www.sec.gov.ph/mc-2025/sec-mc-no-10-series-of-2025repeal-of-the-rules-allowing-the-trading-of-b-shares-on-the-regular-board-and-requiring-buyers-to-accept-either-b-or-a-certificates/?fbclid=IwY2xjawMGiU9leHRuA2FlbQIxMABicmlkETFHaFE2Y1pqQkd3RVVCNHpHAR4ufJ6w2GQ6EwTY8wMA5ld_41xymdaJYVMnVl3OIVEhU8EnedJIODbngJkcxw_aem_ocS81oi77eeYCPAKxF-PTQ#gsc.tab=0