Foreign investments in shares of stocks acquired in the dollar-denominated trading (DDT) facility of the Philippine Stock Exchange (PSE)

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INTERNATIONAL OPERATIONS D E FARTMENT

CircuLar -- LeTteFH

T C ALi cOMmeRciaL BanKs, SECiritiES DeaLersi BROKERS AND OTHERS CONCE ENED

SUBJECT FOREIGN INVESTMENTS IN SIIALES DF STOCKS ACQUIRED IN THE DOLLAR-DE NCEINATED TRADING (DDT) FACILITY OF T -iH PHILIPPINE STOCK EXCHANGE (PSE)

Gcvarror dated Felbruary 4, 2004 to the Philippine Stor- Exchange (PSE , on the arproval of the roquest of the PsE that foreign i estments in srares of- stcck ac quired in the DDT Facility be allowed specia EsF registration under the ccrd itions indicated in aforesaid letter. dealersttbrokers ant orhers concerned, attached is a ceoy af the letter o the Secticn 32 of Circular No. 1389 dated April 13, 1993, a3 amended. subject to For infornatior: and guidance of all comrri a ial banks. secuzities

CELIA M. GM IALEZ Wui w. Direco

At1.: els

Fe:*uar 10, 200

MAG-IMPOK SA BANGKO

MAYNILA, PEi_MP[N.rS 1004 . Te] No. 524-70-11 trunkline URL: www.bsp.gv H e-r:1ail: [email protected]_h

MANILA

OfFiCe CF tHe GGyERnor

Februar- . 2004 Ref. No=ICO4-FB02LT

Pasig City Philippine Stock Exchange, Inc. Pnilippine Stock Exchange Centre Fex Nos. 63-1-5113/5920 E-change Road, Ortigas Center

Attn.: Ms. Alicia Rita M. Arroyo Chairperson

R e : Dollar Denominated Trading_CDT Facilityof the PSe

Gentlernen:

Nn. 52 dated January 22, 2004, approved ynu request tha: 'creign ccnversion to pesos of the foreign excharg : :FX) funding said: investments in shares acquired in the DDT Faci ty be"allowed special Bangko Sentral ng Pilipinas (BSP) registraticn under Section 32 of Circutar No. 1389 dated Aprit 13, 1993, as amer:-iel. even f there wasng ir'vestments, subject to the following conditions: Please be advised that. the Monetary B-eri :nder its Resolu-ion

3 To facititate monitoring, registration sall be centralized vith. tre PsE-designated settlement ba nk's waich shall act as the custodian bank/s and register, cn hahalf af the BSP, he foreign investments in shares puerrased under the tDT Facility inciuding the stock dividends-e-ned trerecir:

b The repatriation and remittance p Tvileges using FX special registration shall be Jimite- o the peso procescs shares previousty acquired in the >Dr Facility ircludng from a cross sale in the PsE pesc Loard of the reg ste-ed acquired in the DDT Faciity: purchased from authorized agent Ba :cs (AABs) under his stock dividends and peso cash diviceds accruing cn shares

C Registration shal be supported by =: original cepy of he

Rernittance evidencing that the FX ti_nding the invesiments Iccal broker's DDT buy invoice =c Ceraificate of Inwrd

Ref. NC.: PICCc-FE2LT

shail be submitted to the BSF-I ernationai Operaicns Department (I0D) within two "2. barking days rom registration date in accordance x th exis-irg investnent in the DDT Facility was inwardly rer nted and credred -p js Cash Settlement account maintzind with the se tlement bank which is exclusively used for setilernert of irades ir the duplicate Bangko Sentrai Regisiaton Cocument (BS RD)) registration rules; DDT Facility. Copies of these dc u rents, :ogether "witr the

C together with the prescribed supiueri~g cocurren-s. wiE be The PSE-designated settlement ix ark/s under the ODT Facility shall report to the BSP-IO, ectrerically (soft cpy) registered investments in the ET Facility. using the prescribed form/s in accordarce with the repo ting requirements under Section 89.G er'c Apperdices -0 ar-i 1: of Circular No. 1389, as amendec.-:and Circular--eiter d ated Aprii 23, 2003. The soft copy v-l be used or statisicai used for post-audit purposes: and and in hard copy all transactos certainirc to 3sr monitoring purposes while the Fart cosy of the re-or.

E All BSP rules on registration ard -apatriation ot for sign

investments not inconsistent wir:i : :ese concitions shat con tinue to apply.

for a cross saie in the PsE peso board of share= Frewiousty acqui-ed -y a ron-resident investor in the DDT Facility shail Ep -y only in the falloving he repatriation and remittance privileges using -> purchasec frcm ABs cases: With regard to the aforementioned condrter b. it is understzod thar

If the shares sold in the PSe ceso board were aiready shares were originally soid and ac-1--red in the EDT Faclity: O0 registered under existing BsP ruie; H-r a coveing Barko Sentral Registration Document (BS RD) prior rio tfre date -aid

2 If the shares were not so previous-yi "egistered and covered in the DDT Facility was convertec b pesos thru te P 3E- with the FX retained by said cash sttl: Tient bank/s. by a BSRD, the FX payment for the =quisirion of the sheres designated cash settement bari's with only he peso proceeds paid to the seller of the ees ir tre DDT Faclity

Ref. No P:D04-FB02LT

foreign investment transactions under the DDT Facitity clear with the BSP-IOD the mechanics for this speciai BSP registration of Piease advise your PsE-designated cash settlemert bank/s to

referred your request to the Anti-Money Laundering Council to determine compliance with the Anti-Money Laundering Act. Pursuant to the decision of the Monetary Board, we have also

Very truly yours.

L

RAFAEL B. BUENAVENTURA Governor

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