SEC proposes mandatory online filing for public offerings

THE SECURITIES and Exchange Commission (SEC) is proposing to require companies seeking to raise capital through public offerings to submit registration applications through an online platform as part of its broader push to digitize regulatory processes.

Under a draft circular published on June 9, the SEC would mandate the use of the Online Application for Registration Statements (OARS), a web-based system that allows issuers to electronically file registration statements and other required documents.

The proposal is open for public comment until June 29 and is being released alongside user acceptance testing of the platform.

“The implementation of OARS reflects our continued strategic shift toward a paperless and data-driven regulatory environment,” SEC Chairperson Francisco Ed. Lim said in a statement on Monday.

“By improving accessibility to the application process and removing bureaucratic roadblocks, we are making it easier for more issuers to enter the market, supporting our broader efforts to revitalize capital market activity in the Philippines,” he added.

OARS will initially cover applications for direct public offerings, follow-on offerings, initial public offerings, and first-tranche shelf registrations.

The platform will allow companies to electronically submit registration statements and supporting documents, replacing paper-based processes as part of the regulator’s digitalization efforts.

Under the proposal, the processing period for complete registration applications would be reduced to 40 days from 45 days under existing rules.

The system will also support applications under specialized registration programs, including Securing & Expanding Capital for Real Estate Non-Traditional Securities (SEC RENT) and Securing & Expanding Capital for PowerGen Operators & Wholesale of Electricity & Retail Services (SEC POWERS).

In addition, OARS will facilitate the generation of International Securities Identification Numbers, Classification of Financial Instruments, and Financial Instrument Short Names, in line with standards set by the Association of National Numbering Agencies. — Alexandria Grace C. Magno