Dennis Uy under fire: PSE slaps fine on DITO CME for flouting disclosure rules

By Eileen Mencias

The Philippine Stock Exchange has penalized Dennis Uy’s DITO CME Holdings Corp. days before it announced its decision not to push through with its P8 billion stock rights offer (SRO).

PSE reputation tarnished: Dennis Uy’s DITO could face sanctions for unilaterally canceling P8B SRO days after the deadline, collecting other people’s money

In an advisory on January 27, the PSE said it has imposed the corresponding sanctions on DITO CME Holdings for its failure to comply with the disclosure requirements.

In particular, DITO CME was found to have violated sections 4, 13, 16, and 17.5 of Article VII of the PSE’s listing and disclosure rules.

The PSE is tasked with ensuring “full, fair, timely and accurate disclosure of material information from all listed companies.”

Section 4 refers to unstructured continuing disclosure requirements that are meant to update the investing public with any material fact or events that will affect their investment decisions.

Nilangaw talaga! Cash-strapped Dennis Uy cancels P8B rights offer due to ‘weak demand, poor market conditions’

Section 13 refers to the disclosure of transactions of the directors and principal officers of a listed company while Section 17.5 refers to reports on beneficial ownership of the security.

Section 16, meanwhile, refers to updates on prior statements, with issuers required to update and correct prior disclosures within 10 minutes after receiving the updated information.

The issuer is also required to disclose updates, clarifications, or corrections on disclosures that may no longer be accurate or that may have already been superseded by events.

The fines to be imposed for violating the rules on structured disclosures are based on the listed company’s total assets.
As of September 30, DITO CME had total assets of P109.19 billion.

For companies with total assets of P1 billion or above, the basic fine is P50,000 plus P5,000 for every day of delay. The maximum penalty per year per violation, however, is capped at P500,000.

On the other hand, the penalty for failure to comply with unstructured disclosure requirements is P50,000 for the first violation, P75,000 for the second violation of a similar nature, and suspension for the third violation and delisting for the fourth violation.