PSE penalizes the Cojuangcos’ Central Azucarera de Tarlac
The Philippine Stock Exchange has penalized the Cojuangco family’s Central Azucarera de Tarlac for violating disclosure rules and because one of its principal officers traded in its shares during a black out period.
The PSE announced that it penalized Central Azucarera de Tarlac on July 5 and cited three violations: delayed disclosure of change in shareholdings of principal officer; transaction of a principal officer during a black out period; and noncompliance with disclosure requirements on stockholders meetings.
The PSE did not provide additional details on the fines and penalties imposed.
A blackout period is when a company’s officials who are privy to classified information are restricted from buying or selling in the company’s shares or securities. Blackout periods are meant to prevent insider trading.
The PSE did not identify the principal officer who traded in Central Azucarera de Tarlac.
“The basic principle of the Exchange is to ensure full, fair, timely and accurate disclosure of material information from all listed companies,” Section 1 of the PSE’s rules and regulations says.
“The Issuer must promptly make available all information, through the submission of structured and unstructured disclosures, that would enable a reasonable investor to determine whether to buy, sell or hold securities, or in connection with the exercise of related voting rights.
It must take reasonable steps to ensure that all investors have equal access to such information.”