The Philippine Stock Exchange (PSE) has penalized First Gen Corporation and DoubleDragon Corporation for failing to comply with the disclosure mandates outlined in its Consolidated Listing and Disclosure Rules.
First Gen, a power generation firm led by Lopez Inc. President Federico “Piki” Lopez, was found in violation of multiple provisions under Article VII of the exchange rules, specifically Sections 1, 2, 4, and 16. The regulatory infractions coincide with an internal family disagreement regarding First Gen’s acquisition of a minority stake in hydropower projects belonging to Enrique Razon Jr.’s Prime Infrastructure Capital Inc.
Under the PSE’s transparency guidelines, public firms must provide comprehensive, precise, and prompt updates on major corporate events to guarantee a level playing field for all market participants. Sections 1 and 2 mandate the regular submission of reports and the immediate broadcast of significant events that could sway stock performance, enabling investors to make well-informed trading decisions.
Furthermore, the PSE noted that First Gen breached Sections 4.1 through 4.4, which demand instant disclosure of board-sanctioned corporate maneuvers—such as share swaps, private placements, or new share issuances—capable of altering stock prices. The utility firm also violated Section 16, a provision requiring companies to swiftly correct or update past disclosures if new events render them inaccurate or incomplete.
Real estate developer DoubleDragon Corporation, established by Edgar “Injap” Sia II and Tony Tan Caktiong, faced sanctions under the same framework for breaching Sections 1 and 16.
The PSE has withheld details regarding the specific financial penalties or disciplinary measures levied against the two corporations.