SECURITIES REGULATION CODE

(COURSE SYLLABUS)
SECOND SEMESTER 2017
NEW ERA UNIVERSITY COLLEGE OF LAW

ATTY. JOVEN G. SEVILLANO

GENERAL PRINCIPLES

I. Securities Exchange Commission (SEC)

1.1. Powers and Functions (Section 5)

1.2. Jurisdiction (Section 5.2)

SEC vs. Court of Appeals (246 SCRA 738 -1995)

Pineda vs. Lantin (6 SCRA 757 -1962)

II. History and Related laws

2.1. Securities Regulation Code (R.A No. 8799) amending Revised Securities Act (BP.
No. 178)
2.2. Presidential Decree No. 902-A (as amended by P.D. 1653, 1758, 1799 and the code)
2.3. The Corporation Code (B.P. 68)
2.4. The Investment House Law (P.D. 129, amended by R.A. 8366)
2.5. The Financing Company Act (R.A. 8556)
2.6. Investment Company Act (P.D. 129, amended by R.A. No. 8366)
2.7. Foreign Investment Act (R.A. No. 7042)
2.8. Executive order No. 708

SECURITIES REGULATION CODE (Republic Act No. 8799)

I. Purpose and State Policy (Section 2)

PSE vs. Court of Appeals (281 SCRA232- 1997)

II. Securities

2.1. Securities, defined (Section 3.1)

a. Investment Contracts
b. Derivatives
c. Commodity Futures Contract

2.2. Significant Terms (Sections 3.2. – 3.15)

a. Issuer
b. Broker
c. Dealer
d. Clearing Agency
e. Exchange
f. Pre-need Plans
g. Promoter
h. Prospectus
i. Registration statement
j. Uncertificated security
k. Underwriter
III. Registration

3.1. General Rule

a. Full Disclosure vs. Merit System

PSE vs. Court of Appeals (281 SCRA232- 1997)

b. SEC Powers on Securities Transaction (Section 8)

3.2. Exceptions

a. Exempt Securities (Section 9)

b. Exempt Transactions (Section 10)

Nestle Philippines vs. Court of Appeals (203 SCRA 504 -1991)

3.3. Procedure (Section 12)

3.4. Commodity Futures Contracts (Section 11)

3.5. Pre-Need Plans (Section 16)

3.6. Liabilities

3.7. Reportorial Requirements (Sections 17 -18)

IV. Protection of Shareholder Interests

4.1. Tender Offers (Section 19)

4.2. Proxy Solicitations (Section 20)

4.3. Internal Record Keeping and Accounting Controls (Section 22)

4.4. Transactions of Directors, Officers and Principal Stockholders

a. Reportorial Requirements
b. Unfair Use of Information (Section 23.2.)
c. Unfair Sale of Securities (Section 23.3.)

V. Manipulative Practices and Insider Trading

5.1. Manipulation of Security Prices (Section 24)

a. Wash Sales

5.2. Manipulative and Deceptive Devises (Section 24.2)

a. Short Sale

5.3. Option Trading (Section 25)

a. Put
b. Call
c. Straddle
 5.4. Fraudulent Transactions (Section 26)

5.5. Insider Trading (Section 27)

a. Insider
b. Information is “Material Nonpublic”
c. Other unlawful Activities

VI. Securities Market Professionals

6.1. Professionals

a. Broker
b. Dealer
c. Associated person of a broker or dealer
d. Salesman

6.2. Registration

a. Qualifications (Section 28.4.)

b. Broker-Director Rule (Section 30.1.)

VII. Exchanges and Other Securities Trading markets

7.1. Prohibition on Use of Unregistered Exchange (Section 32.1)

7.2. Regulation of the Over-The-Counter Markets (Section 32.2.)

7.3. Exchange (Section 3.7.)

Lopez, Locsin, Ledesma & Co. vs CA (168 SCRA 276 -1988)

7.4. Broker-Dealer Segregation Rule (Section 34.1.)

VIII. Self-Regulatory Organization (Section 39)

8.1. Securities-Related Organizations (Section 39.1.)

8.2. Securities Association (Section 39.2.)

IX. Securities Acquisition, Transfer and Settlement of Transactions

9.1. Clearing Agency (Section 3.6)

9.2. Registration and Dealing sin Securities (Section 43)

a. Uncertificated Securities
b. Rules on Transfers of securities
c. Pledging Security (Section 45)

X. Margin and Credit

10.1. Margin (Section 48)

10.2. Borrowers by members, brokers and dealers (Section 49)
10.3. Enforcement of Margin requirements and borrowing restrictions (Section 50)

XI. Liabilities and Damages