The Philippine Stock Exchange (PSE) said Tuesday six Gatchalian-led firms could be delisted from the local bourse if ongoing investigations show they committed fraudulent trading activities.
PSE president and chief executive Francis Lim said they are still discussing futher action against the companies and "delisting" is one of the things they are looking into.
The six firms controlled by plastics king William Gatchalian include Acesite Phils. Hotel Corp., Forum Pacific Inc., Mabuhay Vinyl Corp., Philippine Estates Corp., Waterfront Phils. Inc. and Wellex Industries Inc.
On Monday, these listed companies threatened to sue the PSE for tigthening trading rules involving their shares without the benefit of due process.
In a statement through their legal counsels, they claimed they have been singled out by the PSE, "to the damage and detriment" of their reputation as well as the investing public.
"The exchange, under the guise of protecting the public, unreasonably used its blanket authority on mere "suspicion" to unilaterally restrict the free trade of our clients' shares," the companies' lawyers said.
The PSE has imposed settlement restrictions on the shares of the six firms. The bourse ordered that on the day of the trade, the shares should be in the selling broker's house account with the Philippine Depository and Trust Corp. before any sell order can be posted.
"We are calling for the cooperation of our brokers to adhere to this requirement. We cannot unnecessarily expose our stock market to clearing and settlement risks as that would compromise the integrity of our market," said Lim. With a report from ABS-CBN News