PSE Rules on Securities Borrowing and Lending

February 1, 2007MEMO FOR TRADING PARTICIPANTS NO. 45-07SUBJECT : PSE Rules on Securities Borrowing and LendingPlease be informed that the Securities and Exchange Commission (SEC) has approved The Philippine Stock Exchange's Rules on Securities Borrowing and Lending (the "Rules"). Attached is a copy of the Rules for your reference. The Rules shall take effect on February 15, 2007.For your information and guidance.(SGD.) FRANCISCO ED. LIMPresident and CEOPART 1RULES ON SECURITIES BORROWING AND LENDINGA. General ProvisionsIn order to avail of the tax treatment of the Securities Borrowing and Lending (SBL) transactions under BIR Revenue Regulations No. 10-2006 dated June 23, 2006, these Rules set out the requirements for the conduct of SBL transactions under the SBL Program administered and supervised by the Exchange. HEASaC1.01 Definition of Terms — When used under these Rules, the following terms shall have the meaning indicated, unless the context provides otherwise:(a) Borrower. — Any person who borrows shares or securities listed and traded in the PSE from a Lender/Lending Agent's portfolio to support his/its trading activities or for any of the...