The Securities and Exchange Commission had forced the Philippine Stock Exchange to lift the trading suspension imposed on the shares of Benguet Corporation despite the bourse’s self-regulatory organization status.

The PSE said “in compliance with the strict directive of the Commission, please be advised that the Exchange will not implement the trading suspension originally scheduled, Tuesday, October 27, 2009.”

The PSE said it had issued to Memorandum No. 2009-0465 on October 19, 2009 regarding the trading suspension to be imposed on the shares of Benguet Corporation for BC’s repeated failure to disclose notices of default from its creditors.

However, on October 22, 2009, the PSE said it received a copy of the letter of BC to the SEC arguing that BC is not in violation of the PSE Revised Disclosure Rules for non-disclosure of the subject notices of default.

Benguet alleged non-compliance with the procedural requirements of collective notice based on existing agreements with creditors, said the PSE.

In the morning of October 26, 2009, the PSE said it advised BC that the decision of the Exchange stands and shall be implemented as originally scheduled, unless otherwise directed in writing by the Commission.

The PSE said it did receive a strict directive from the SEC for the Exchange, its directors, officers, agents and assigns “not to impose the penalties, or do any act that may render moot or ineffectual whatever action the Commission may take in connection with the said letter” pending consideration by the Commission of BC’s letter.

The Commission required the Exchange to comment on the letter of BC within five business days.

“The Exchange will provide the Commission with the relevant information the violations committed by the Corporation as well as the basis for the imposition by the Exchange of the corresponding penalties,” said the PSE.

In a disclosure filed by Benguet, the firm pointed out that Philippine National Bank has clarified that it has yet to issue a declaration of default after sending Benguet several notices of default.

Benguet said it holds the “position that the issue of materiality and the applications of the (PSE) disclosure rules will only come into play when there is the existence of actual default status versus mere individual notice which may or may not produce the effects of default.”