The Securities and Exchange Commission (SEC) continues to pitch the capital market’s potential as a source of funding for micro, small and medium enterprises (MSMEs), as it brings its nationwide roadshow on capital formation to Cebu City this week.
Following the successful launch of the 2023 Roadshow on Capital Market Formation for SMEs in Davao last February 15, the commission will be holding the second leg of the year-long caravan on March 17 at the Cebu Parklane International Hotel, Cebu City.
The roadshow aims to emphasize the importance of the capital market, including crowdfunding platforms, in helping small and medium enterprises raise funds for business expansion.
Crowdfunding is a fundraising activity typically conducted by startups and SMEs, where the public can support or fund a business idea through an online platform.
The SEC regulates crowdfunding activities in the country, with the Rules and Regulations Governing Crowdfunding provided under SEC Memorandum Circular No. 14, Series of 2019.
Under the Crowdfunding Rules, SMEs no longer have to register securities with or secure approval from the SEC before they can solicit investments from the public.
SMEs need only register with a crowdfunding intermediary, funding portal, or crowdfunding platform then present their business idea to secure funding from the public, subject to certain limitations.
There are currently three crowdfunding intermediaries registered with the SEC, namely Investree Philippines, SeedIn Technology, Inc., and Eastern Securities Development Corporations (Round One).
Speakers from the three companies will be present during the roadshow to provide consultation on how to use their platforms to MSMEs.
SEC Commissioner Karlo S. Bello will deliver the keynote speech for the Cebu roadshow, together with Markets and Securities Regulation Department Director Vicente Graciano Felizmenio, Jr.
Other speakers include representatives from the Philippine Stock Exchange (PSE), Investment and Capital Corporation of the Philippines, the Philippine Chamber of Commerce and Industry (PCCI), and Cebu Landmasters, Inc.
The roadshow is part of the SEC Office for the Advancement of Strategic Investments in SMEs’ (OASIS) initiatives to promote the interests of SMEs by setting up viable alternatives in raising capital by simplifying the capital-raising products, streamlining the registration process, and encouraging houses and other financial institutions to implement SME-friendly advisory programs, among others.
The initiative is also part of the Commission’s 888@88 goal, under which the SEC targets to have at least 888 companies tap the capital market in time for its 88th anniversary in 2024.
After Cebu, the Commission will also be bringing its roadshow to Cagayan de Oro, Zamboanga, Bacolod, Legazpi, Iloilo, Tarlac, Baguio, the CALABARZON region, and Metro Manila. For more information and updates, visit the SEC website at http://www.sec.gov.ph.