THE SECURITIES and Exchange Commission (SEC) is proposing to require corporations searching for to boost capital through public offerings to submit registration applications through a web based platform as a part of its broader push to digitize regulatory processes.
Under a draft circular published on June 9, the SEC would mandate using the Online Application for Registration Statements (OARS), a web-based system that permits issuers to electronically file registration statements and other required documents.
The proposal is open for public comment until June 29 and is being released alongside user acceptance testing of the platform.
“The implementation of OARS reflects our continued strategic shift toward a paperless and data-driven regulatory environment,” SEC Chairperson Francisco Ed. Lim said in an announcement on Monday.
“By improving accessibility to the applying process and removing bureaucratic roadblocks, we’re making it easier for more issuers to enter the market, supporting our broader efforts to revitalize capital market activity within the Philippines,” he added.
OARS will initially cover applications for direct public offerings, follow-on offerings, initial public offerings, and first-tranche shelf registrations.
The platform will allow corporations to electronically submit registration statements and supporting documents, replacing paper-based processes as a part of the regulator’s digitalization efforts.
Under the proposal, the processing period for complete registration applications can be reduced to 40 days from 45 days under existing rules.
The system can even support applications under specialized registration programs, including Securing & Expanding Capital for Real Estate Non-Traditional Securities (SEC RENT) and Securing & Expanding Capital for PowerGen Operators & Wholesale of Electricity & Retail Services (SEC POWERS).
As well as, OARS will facilitate the generation of International Securities Identification Numbers, Classification of Financial Instruments, and Financial Instrument Short Names, in step with standards set by the Association of National Numbering Agencies. — Alexandria Grace C. Magno