THE Philippine Stock Exchange (PSE) has maintained the suspension of trading participant DW Capital, Inc. over alleged violations, including unauthorized trading amounting to P2.6 billion.
The brokerage firm was ordered suspended on August 10 this year after trader Valerie Gaisano-Sebastian’s claims that the broker engaged in unauthorized, fraudulent, and deceitful acts by selling her shares of stocks without her knowledge and consent.
“[The] Exchange has initiated disciplinary proceedings against DW Capital, Inc. pursuant to Section 40.6 of the Securities Regulation Code and Section 40.6.1 of its Implementing Rules and Regulations,” the bourse said in a memorandum on Tuesday.
“During the pendency of such proceedings, DW shall remain under preventive suspension and shall have no access to the trading system or facilities of the Exchange,” it added.
The Securities and Exchange Commission (SEC) in early September formed a special panel to probe the allegations.
The special hearing panel was comprised of lawyers from the SEC’s Enforcement and Investor Protection Department, Office of the General Counsel, and Markets and Securities Regulation Department.
The PSE’s Capital Markets Integrity Corp., which is tasked to regulate registered brokerage companies, had earlier filed a petition to take over DW Capital’s operations.