Disclosure and the PSE: are they following the law to the letter?
Netizens have been abuzz with PSE’s compliance with laws on disclosure because of a letter that has been circulating about what was a complaint that the PSE failed to disclose. Apparently, it has been months that an Ayala Land offense seems to have been covered up. The letter was sent to Hans Sicat, CEO of the PSE by the legal counsel of a company called Gardenful Ventures. Many wondered about the nature of the offense by ALI and if that warrants an investigation or if it will affect ALI’s overall financial standing.
Philippine law dictates that in the interest of the investing public, the Philippine Stock Exchange is required to disclose all issues about the companies being traded. The public has the right to know if their money will be safe when they invest it with a certain company or not. The PSE is the final authority that is expected to disclose all pertinent information about all the companies who do business with the public.
What is disturbing is that this letter, which came to the attention of the public through Facebook and was passed around many times until it went viral, was the only way that the public knew that was an issue with Ayala Land Inc. ALI is a company that builds residential and commercial condominiums and malls thus a great deal of money goes around in investments and real estate development. While some people choose to buy homes from ALI, there are some who opted to put their hard-earned money into ALI’s stocks. Because the impression of the public that ALI properties sell like hotcakes, there is more than adequate trust in their stocks, thus the higher-than-usual cost of trading ALI stocks. Ayala Land enjoys the trust of the public because of the good name of the Ayala Group of Companies to which ALI belongs, but the public needs to know if there have been offenses committed which will affect the price of their stocks and their overall financial standing. It is the responsibility of the PSE to make sure that all such matters are fully disclosed.