Definition and Qualifications of a Qualified Institutional Buyer
- A juridical person qualifies if, at registration time, it meets one of the following:
- Minimum annual gross income of at least PhP100,000,000 for at least two years prior;
- Total portfolio investment in securities registered with the Commission of at least PhP60,000,000;
- Net worth of not less than PhP100,000,000.
Application and Documentation Requirements for Registration
- Applications must include:
- Signed Information Sheet (specific forms for Individual and Institutional Buyers in Annexes 1 and 2).
- Proof of qualifications.
- Copies of income tax returns for the preceding two years, filed and stamped by the Bureau of Internal Revenue.
Validity and Renewal of Registration
- Registration is valid for two years.
- Renewal requires:
- Favorable recommendation of the authorized registrar.
- Approval of the Securities and Exchange Commission.
Registry Book and Inspection Rights
- Registry book maintained by authorized registrants.
- Must always be open for review or inspection by the Commission.
Restrictions on Transfer of Securities
- Securities purchased by qualified buyers cannot be assigned, transferred, or sold to non-qualified investors.
Effectivity
- The Memorandum Circular takes effect on January 15, 2008.