October 2024

Philippines Substantial Shareholding

Information

The PSE is consulting on proposed rules which will be issued to govern the listing, trading, and clearing and settlement of Global Philippine Depositary Receipts (“GPDRs”).

The rules note the PSE intends to launch GPDRs, which are instruments where the holder has an economic interest in an underlying security listed on an overseas exchange. While the GPDR holder does not possess voting rights in the underlying security, it has the option to convert the GPDR to the equivalent shares or units of the underlying security, subject to the requirements and procedures that will be determined by the GPDR Issuer. 

Our Thoughts

The PSE’s introduction of Global Philippine Depositary Receipts (GPDRs) aims to provide investors with greater access, enhancing investment opportunities while highlighting the importance of understanding the associated terms, particularly the absence of voting rights.

The above content is purely for information and does not purport to offer legal or professional counsel.