BSP CIRCULAR LETTER REGISTRATION OF STOCK DIVIDENDS ACCRUING TO BSP-REGISTERED FOREIGN INVESTMENT July 24, 1997

Effective immediately, all stock dividends accruing to Bangko Sentral ng Pilipinas (BSP)-registered inward foreign investment shall no longer be issued a new Bangko Sentral Registration Document (BSRD). Such stock dividends shall be deemed registered provided that:

1.         The stock dividends are duly annotated in the BSRDs covering the mother shares to which the dividends accrue, upon submission of a copy of the stock dividend notice or stock dividend certificates;

2.         The stock dividends so annotated shall be reported monthly to the BSP Foreign Exchange Department by the custodian bank concerned in accordance with the attached form*; and

3.         Whenever the stock dividends are sold and the proceeds are outwardly remitted thru a remitting bank other than the custodian bank, the BSRD of the mother shares, to which the stock dividends accrued, shall be the BSRD quoted in the BSRD letter-advice required to be issued under existing rules.

The foregoing rules shall likewise apply to stock splits.

Adopted: 24 July 1997