Calata guilty of multiple violations of PSE disclosure rules

MANILA, Philippines - Calata corp., the listed agribusiness company of self-made businessman Joseph Calata, has been found guilty of multiple violations of the disclosure rules set by the Philippine Stock Exchange (PSE).

As a result, the PSE said trading of Calata shares are suspended for one month, on top of a monetary fine.

The PSE said the company did not make the appropriate disclosure of its disposition of shares by the company’s directors and principal officers. It also did not provide updates of previous disclosures on material information that may affect investor decision.

“The PSE also found CAL to have violated the blackout rule which prohibits directors and principal officers who have obtained material non-public information to trade their company’s shares within a prescribed period.  The blackout rule is in place to provide a fair market environment to the investing public by disallowing the possible trading of company insiders using non-public information that they may have access to by virtue of their position in the company,” the PSE said.

PSE president and CEO Ramon Monzon said aside from the trading suspension and monetary fines, the local bourse may slap other penalties on the company if necessary.

“We would like to assure the investing public that the PSE upholds strict compliance to our disclosure rules for the protection of investors and to maintain a fair and orderly market.  The parameters for timeliness of disclosures have been put in place precisely for these reasons and any violation will need to be dealt with accordingly consistent with our rules,” Monzon said.

In its notice, the PSE said the imposition of penalties is without prejudice to further regulatory actions that it may undertake in relation to the disclosure violations that have been committed by Calata.

According to the PSE, the penalties slapped on Calata for first violation amount to P50,000 and P75,000 for the se-cond violation.

The one-month suspension is the penalty for the third violation while the penalty for a fourth violation would be delisting.

“On the basis of the above-cited penalties and fines, the PSE imposes on the corporation the corresponding monetary penalties and the trading suspension of CAL shares for a period of one month. The imposition of said monetary penalties and trading suspension are without prejudice to any further regulatory action that may be undertaken by the Exchange in connection with the above violations,” the PSE said.