Registration of Stock Dividends Accruing to BSP-Registered Foreign Investment

CIRCULAR LETTER Series of 1997

TO : All Commercial Banks and OBUs

SUBJECT : Registration of Stock Dividends Accruing to BSP-Registered Foreign Investment

Effective immediately, all stock dividends accruing to Bangko Sentral ng Pilipinas (BSP)-registered inward foreign investment shall no longer be issued a new Bangko Sentral Registration Document (BSRD). Such stock dividends shall be deemed registered provided that:

1. The stock dividends are duly annotated in the BSRDs covering the mother shares to which the dividends accrue, upon submission of a copy of the stock dividend notice or stock dividend certificates;

2. The stock dividends so annotated shall be reported monthly to the BSP Foreign Exchange Department by the custodian bank concerned in accordance with the attached form; and

3. Whenever the stock dividends are sold and the proceeds are outwardly remitted thru a remitting bank other than the custodian bank, the BSRD of the mother shares, to which the stock dividends accrued, shall be the BSRD quoted in the BSRD letter-advice required to be issued under existing rules.

The foregoing rules shall likewise apply to stock splits.

EDGARDO P. ZIALCITA Deputy Governor