PHILIPPINES: PSE Implementing Revised Policy on Index Management

Thursday August 12 2021

The Philippine Stock Exchange (PSE) is implementing revisions to its policy on managing the PSE Index Series. The changes are part of the Exchange’s initiatives to ensure that the PSE’s indices remain at par with global standards and responsive to the changing needs of the market. 

The salient amendments to the index management policy are as follows: 

• Increase in free float level requirement for index membership to 20% from the current 15%, to qualify for inclusion in the PSE indices. 
• Early inclusion provision for issuances that can comply with specific size and liquidity criteria; and 
• Adjustments to the rules for insertions and removals wherein a listed company shall be included in the PSEi if it ranks 25^th or higher and shall be excluded in the PSEi if it ranks 36^th or lower in terms of full market capitalization. 

The new float level requirement will be implemented for the December 2022 index review to give listed companies ample time to satisfy this criterion. Meanwhile, the early inclusion provision and the rules for insertions and removals were applied in this June 2021 index review. 

For the information and guidance of the investing public and market participants, please refer to the revised Policy on Index Management posted on the PSE website. 

All changes shall be effected on August 16^th, 2021, Monday. 

 Click on the above link for further information.