WHEREAS,
the rate of commission charged by brokers in the Manila Stock Exchange
and the Makati Stock Exchange for each transaction is admittedly high,
compared with other stock exchanges in some cities in developing
countries of Southeast Asia;chanroblesvirtualawlibrary
WHEREAS, the stockbrokerage business is lucrative especially when the
stock market is bullish and the stock transaction is voluminous;chanroblesvirtualawlibrary
WHEREAS, some forms of restraint or regulatory measures should be
provided by the government by reducing the current rate of broker's
commission from its present level to a more reasonable one in order to
provide incentives to investors to participate more actively in the
operation of stock markets, and thereby channel their savings to needed
industries and enterprises; and
WHEREAS, reduction of the current rate of broker's commission is deemed
necessary in the public interest.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
General Order No. 1 dated September 22, 1972, as amended, do hereby
order and decree:cralaw:red
Section 1. Rate of Brokers' Commission. — No
stockbroker using the facilities of any stock exchange shall charge,
collect or receive a commission of more than 1% of the value of each
transaction, whether a purchase or a sale, but in no case shall the
commission be less than twenty (P20.00) pesos for a transaction.
Section 2. Adjustment of rates to Prevailing
Conditions. — The Securities and Exchange Commission (SEC) shall have
the power to study and adjust from time to time the rate of commission
herein established to conform with prevailing conditions when the same
is necessary in the public interest, but in no case shall the change of
rate be more than once in one year. chanroblesvirtualawlibrary
Section 3. Penalty. — Any violation of Section 1 of
this Decree shall be punished in accordance with the provisions of
Section 40 (Penalties) of the Securities Act.
Any provision of law, executive order, rule or regulation in conflict
with, or contrary to, this Decree is hereby repealed or modified
accordingly.
This Decree is hereby made a part of the laws of the land and shall
take effect immediately. chanroblesvirtualawlibrary
Done in the City of Manila,
this 14th day of March, in the year of Our Lord, nineteen hundred and
seventy-three.
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