MANILA - The Philippine Stock Exchange is addressing an issue on ownership limits to move its planned merger with the Philippine Dealing System forward, the head of the Securities and Exchange Commission said Wednesday.

Under the Securities and and Regulatory Code, no one industry can own more than 20 percent of the PSE. Brokers currently own more than 20 percent of the exchange.

The PSE is moving in the right right direction by working to reclassify inactive brokers, and opting for a stock rights offer, which could help dilute the brokers’ ownership, SEC chairperson Teresita Herbosa said.

The Philippine Competition Commission recently approved the merger of the PSE and PDEX which will bring together the country's stock and bond exchanges.

The PSE also must submit a notice of the merger to complete regulatory requirements, Herbosa said.