THE Philippine Stock Exchange (PSE) on Friday lifted the trading restrictions on six companies controlled by businessman William Gatchalian that had been imposed three years ago.

In a memorandum dated January 19, the PSE said that the trading restrictions on Acesite (Phils.) Hotel Corp., Forum Pacific Inc., Mabuhay Vinyl Corp., Philippine Estates Corp., Waterfront Phils. Inc., and Wellex Industries Inc. have been lifted, but they would remain “subject to close watch” by the local bourse.

“The lifting of the trading restrictions is conditioned on the companies’ and its related entities’ continuing maintenance of only one account with Westlink Global Equities Inc. for the purpose of trading PSE listed shares,” Hans Sicat, PSE president and chief executive said.

Westlink Global is a brokerage firm affiliated with Gatchalian.

“It shall also be without prejudice to any action that may hereafter be deemed necessary by the Exchange in accordance with existing laws and rules in case of any violation of the PSE Rules and in order to maintain and preserve an efficient, fair and orderly market as mandated by the Securities Regulation Code,” Sicat added.

The lifting of the trading restrictions, particularly on trade date procedures, was pursuant to the PSE board resolution dated December 14, 2011.

Three years ago, the PSE and its unit Securities Clearing Corp. of the Philippines (SCCP) imposed early delivery requirements on the six firms for unspecified violations, saying it was a move “for the protection of public interest and as a risk management measure.”

Before the trading restrictions were lifted, brokers who trade in those six shares should adhere to procedures: On trade date, the selling broker should ensure that the shares are already in their “house” account with the Philippine Depository & Trust Corporation before posting any Sell order.

The buying broker, on the other hand, should require the investor to deliver upfront 100 percent cash payment before posting any Buy order.

A day following the transaction or T 1, the net selling broker should make an early delivery of their net securities delivery obligations by 12 noon, or deposit cash collateral equivalent to 100 percent of the market value of their securities delivery obligations if the securities are not available for early delivery.

Meanwhile, the net buying broker is required to make an early delivery of the cash equivalent to 100 percent of the value of their net buying of the said shares by 12 noon of T 1, regardless of whether the broker is a net due broker or net due clearing of cash.