MANILA - The Securities and Exchange Commission merely followed the law when it revoked the incorporation papers of news website Rappler, a fund manager said Tuesday.

The SEC said Rappler violated constitutional restrictions on foreign ownership by giving Omidyar, which holds Philippine Depositary Receipts or PDRs of the company, the "right to participate" in "management acts."

The SEC was "being consistent in how it applies the rules," said Ed Francisco, president of BDO Capital and former co-chairman of the Capital Markets Development Council.

• Rappler's incorporation papers revoked by SEC
• SEC chief says to defend Rappler ruling 'to the hilt'

Francisco said Rappler had the option to refile the PDRs to address the regulator's concern.

"They can also just redeem it and issue again new PDRs but this way, they can be fully compliant and therefore there should not be an issue."

Rappler has accused the government of harassing it with the SEC decision. Malacanang however denied this.

• READ: Rappler cries harassment over SEC closure order