GENERAL RULE

GENERAL RULE: Securities shall not be:
1. sold,
2. offered for sale or distribution
3. within the Philippines
4. without a registration statement duly filed and approved by the SEC
EXCEPT:
EXEMPT SECURITIES (Sec. 9) – NO need for registration statement to be duly filed and
approved by the SEC.:
1. Those issued or guaranteed by the Government of the Philippines, or by any political subdivision, agency, or instrumentality;
2. Those issued or guaranteed by the government of any country with which the Philippines maintains diplomatic relations (on the basis of reciprocity);
3. Certificates issued by a receiver or by a trustee in bankruptcy duly approved by the
proper adjudicatory body;
4. The sale of any security, or its derivatives, which, by law, is under the supervision and
regulation of the Office of the Insurance Commission, Housing and Land Use Regulatory Board, or the Bureau of Internal Revenue;
5. Any security issued by a bank (except its own shares of stock).
6. Exempt Transactions (Sec. 10)

STEPS TO AVAIL OF THE EXEMPTION:
1. Apply for an exemption by filing with the SEC a notice identifying the exemption;
2. Pay to the SEC a fee equivalent to onetenth (1/10) of one percent (1%) of the
maximum aggregate price or issued value of the securities.