MANILA, Philippines -- The Securities and Exchange Commission has deferred the implementation of its directive for stock brokers to trim their collective voting rights in the demutualized Philippine Stock Exchange to 20 percent.

This was in line with a request from the PSE to defer the SEC's directive on this single-industry ownership limit, which in turn was prescribed by the tighter Securities Regulation Code.

Stock brokers, which used to own 100 percent of the exchange, have now reduced their holdings to about 37 percent but this is still higher than the prescribed limit.

The SEC was also set to impose a higher fine of P500 for each day of non-compliance in case of full implementation of the rule, the PSE disclosed on Tuesday. The earlier daily fine was lower at P100.

A veteran stock broker said the SEC had no choice but to defer this requirement because the local bourse was constrained by a strict computation on the voting rights of brokers.

The broker noted that stock brokerages that have ceased operations remain shareholders of the PSE, with the SEC refusing to exclude their voting rights from the computation of the stake attributable to the stock broker industry.

"Also, you can't force the brokers to sell and even if they want to sell, it's not that easy because you may not always find a buyer. You can't force the buyers to buy," the broker said.

The deferment of the limit to the voting rights is seen as a stop-gap measure while stock brokerages sector reduces its combined limit to the ideal ratio.

The PSE demutualized and ceased to be owned purely by brokers earlier this decade as part of the reforms under the SRC. Through the years, the PSE has seen the entry of new stockholders from different industries, and eventually turning over majority control of the board to non-stock brokers. PSE shares are listed and traded in its own bourse.

The PSE is also recognized by the SEC as a self-regulatory organization with authority to prescribe its own rules and police its own ranks.