As part of its efforts to develop the local capital market, the Securities and Exchange Commission (SEC) has outlined policy reforms which includes improving regulatory framework that will make Philippine listed companies to be included in global market indices.

“A robust market must reflect the scale and dynamism of the economy it serves. We are working to deepen participation and modernize infrastructure through reforms,” said SEC Chairman Francis Ed. Lim during the Philippine Investment Conference 2025.

These include “pursuing global index inclusion of Philippine corporates by addressing gaps in liquidity, float, and disclosure.”

Other goals include a revised shelf registration framework for issuers, providing flexibility and speed; expanding the repo market to include trust entities, mutual funds, and insurers; and pushing for short selling and securities borrowing and lending (SBL), aligning with global norms and improving liquidity and price discovery.

Lim said the SEC is also reviewing real estate investment trust (REIT) rules to expand eligible assets, lengthen reinvestment period, and attract broader participation.

It will also promoting sustainability reporting, aligned with global standards, recognizing that resilient markets must integrate ESG principles.

He said the SEC is also working within the ASEAN Capital Markets Forum to support cross-border offerings and regional integration.

“We are also working on listing for grantees of legislative franchises and exploring the listing of commercially viable state-owned enterprises, which will bring new scale and diversity into our market,” Lim added.

Meanwhile, he said “A modern capital market cannot be exclusive. It must broaden participation—among institutions and individuals, large issuers and SMEs (small to medium enterprises), sophisticated investors and working households.”

Thus, the SEC is “Working on proportional regulatory regimes for SMEs, so that smaller but sound firms can access market-based financing.”

It is also supporting retirement-linked pooled funds, designed to be simple and low-cost; transitioning to a notice-based regime for exempt transactions, reducing regulatory friction for low-risk fundraising; and reviewing investment restrictions for public pension funds and encourage them to allocate more of their investible funds to our capital markets.

“By lowering entry barriers—through faster registration, reduced fees, and more digital pathways— we hope to bring MSMEs into the formal economy, nurturing a pipeline of future listed companies,” Lim said.

He also pointed out that, “Trust is the invisible currency of markets. Without it, liquidity dries up, capital flees, and development stalls. That is why safeguarding credibility is our foremost task.”

To maintain credibility, Lim said the SEC is strengthening conduct standards across both traditional products and digital assets and to ensure consistent rules on disclosure, suitability, and fair dealing;

“Transitioning to a risk-based, data-driven supervisory model that enables early detection of misconduct, faster enforcement cycles, and focus on actual behavior—not labels;

“Reviewing our rules on credit rating agencies to address market concerns on over- concentration and to improve transparency and analytical depth; and

“Enhancing supervisory capacity in corporate disclosures, oversight of intermediaries, and governance of listed firms.”

Lim also vowed “Vigorous enforcement of market rules to demonstrate to the investing public that the SEC will be a watchdog, not a lapdog.”