THE Philippine Stock Exchange (PSE) plans to finalize the modified rules on listing by introduction and the spin off of its regulatory arm possibly ahead of its annual stockholders meeting on May 1, said PSE chairman Hans Sicat.

However, he added the search for a new president and chief executive officer is not bound by a similar deadline. Francis Lim, the longest serving president of the bourse, stepped down from his post on February 15.

“Our hope is to find a [new president] by the time we hold the PSE elections. [But] we don’t want to find a particular person based on a time schedule,” Sicat told reporters last week.

He said the bourse, through a search committee, has been talking to several candidates, mainly “CEO-types,” although a short list has not been drafted.

Meanwhile, Sicat said the PSE is in the “final” stages of separating its broker regulating functions by spinning off its market regulation division as proposed by Lim.

Lim also pushed for the separation of the issuer regulation division which oversees listed companies. The twin reforms are seen to remove the perceived conflict of interest between the bourse and listed companies, strengthening the credibility of the exchange.

As this developed, the PSE is also finalizing the new rules on listing by introduction. This was suspended on February 17, right after Internet gaming firm IP e-Game Ventures Inc. joined the bourse using this alternative route.

The PSE said it had to review the rules, as some were vague to investors and applicants.

A company that lists via introduction can trade shares on the exchange without having to go through an initial public offering. The PSE requires that a follow-on public offering be made within 12 months of its listing by introduction.

“Probably the biggest question had to do with their latitude for valuation,” Sicat said. “There was no guidance. Companies can set their price because they know their business, but under what framework?”

Sicat said there were no new applications in the pipeline when the rules were suspended.

Other companies that took this alternative listing route are mining holding firm Century Peak Metal Holdings Corp. and food manufacturer AgriNurture Inc.

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