Investing Word of the day: PCD Nominee Corporation

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source: http://www.pse.com.ph/html/ListedCompanies/pdf/2011/MRC_Top100_Jun2011.pdf


I know this is weird.

This name has always been appearing in the various top 100 stockholder list of most Philippine listed corporation. I was just checking some financial reports of listed companies and one of them is MRC Allied Corporation(MRC) which as of last reporting  about 98% of its outstanding shares are held by PCD Nominee Corporation. That makes MRC wholly owned by PCD Nominee Corporation.

So who or what is PCD Nominee Corporation?

I tried searching the web and Wikipedia.org gave me an answer.

PCD Nominee Corporation (PCNC) is a wholly owned subsidiary of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines. PCNC acts as trustee-nominee for all shares lodged in the PCD system, where trades effected on the Philippine Stock Exchange are finally settled with the PCD. Persons who opt to trade using the PCD do not receive stock certificates as an indicator of ownership as trading using the PCD is completely paperless.




Basically PCD Nominee Corporation holds all shares of stock traded in the Philippine Stock Exchange for all investors thus PCD Nominee becomes a trustee of all the shares for the investors thus leading to a paperless transaction.

Financial Freedom Advocate About the blogger

Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Check him out in Google+ Learn more about Louis and his financial freedom advocacy here.

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16 comments for “Investing Word of the day: PCD Nominee Corporation

  1. Jerico
    September 11, 2013 at 3:19 pm

    Hi Louis,

    Any idea how I can get the list of companies where this PCD Nominee Corp. invested? From the company I’m studying I found them as primary stockholder also of Calapan Ventures Inc. which I’m planning to invest also.

    Thanks and more power!

    • September 12, 2013 at 8:00 pm

      To tell you the truth I also don’t know 🙂 let me check that out. But as the definition said it is the assigned trustee for all listed stock. Remember that stocks traded in the stock exchange are paperless meaning there is no actual stock certificate for all the shares in your portfolio traded in the stock only a list is maintained since at any given time or second a stock traded in the exchange can be owned by several people as it change hands in the trading process. So To what does the PCD Nominee invest? I guess it would be all stocks listed and traded in the stock exchange(but let me check that to be sure)

  2. mytz
    September 12, 2013 at 9:25 pm

    Hi Louis,

    Thanks for pointing that out. I am currently reviewing URC’s top 100 stockholders and PCD Nominee holds 60% also.
    Any advice on how investors should position themselves right now as a preparation for capital flights. Do you think this would only have a short term adverse effect on us?

    • September 13, 2013 at 8:10 pm

      I am actually stuck like the rest 🙂 but I never sold my shares and lose so much. We are all just caught i a bad timing. That is why it is important to have your emergency fund for your needs and of course a backup fund to go on a buying spree in times like this. So if you you have totally free funds I think you should still be careful to average down who knows the world may go again into such atmosphere when Syria turns into a battleground or if our own Napoles Scam drama and the Zamboanga siege continue to go on until investors shy away from the Philippines. Yes foreign funds are needed to keep development in the Philippines but it would be a dream come true if the Filipino people will supplant that fund and be the boss of our own.

  3. mytz
    September 13, 2013 at 8:34 pm

    Can you explain P/E ratio in its simplest form?

  4. October 18, 2013 at 7:26 pm

    Hi! if that would be the case that PCD nominee always on top of the list and sometimes exceeded that of the owner, how do they calculate the float shares and percent? I’m just overwhelm how this figures computed.

    • October 23, 2013 at 2:44 pm

      All the stocks held by the PCD are the stocks traded in the PSE to facilitate the paperless transaction that we enjoy. Since it is a stock freely traded in the exchange it is actually the float shares.

  5. Virgie
    October 21, 2013 at 8:40 am

    I came across with the name PCD Nominee Corporation just last week and read the same info mentioned above from wikipedia.

    Is it legal for the stocks of a suspended Corporation (the Corporation is suspended by the PSE for many years now because it failed to comply with the reportorial requirements of the PSE and the external auditor rendered an adverse opinion on its financial statements) to be lodged with the PCD Nominee corporation? It also transferred from the stocks of the suspended Corporation from PCD Nominee Corporation to certain corporations? I think transferring the ownership of the stocks from one to another is also the same as trading in the PSE.

    Are these transactions legitimate?

    Hope you can help me with this.

    Thank you very much.

    • October 23, 2013 at 2:34 pm

      Transferring stocks from PCD to another corporation is not same as trading, but rather an outside transaction between the parties. I will try to search about whether lodging a suspended corporations stock to PCD is legal.

      • Virgie
        October 24, 2013 at 7:57 am

        Thank you very much. Looking forward to hear from you again soon.

  6. jon
    March 31, 2014 at 3:00 pm

    Today, many people now investing in stock market even the middle class are now aware of this because of the launch of EIP from a well known stock brokerage firm. If my knowledge tells me right, the clients with small investments are included on the PCD Nominee Corporation?

  7. Joe
    December 5, 2014 at 12:30 pm

    Hello. Do you have some update on your action items mentioned above?

    • December 7, 2014 at 6:03 pm

      Hi Joe,

      I apologize for not answering back on the queries. I have been quite in haitus for sometime. Been busy with new work here in the Philippines and I only have a few time for blogging. Will try to answer your queries though.

      Thanks for reminding.

  8. January 30, 2015 at 1:25 pm

    Hello Louis, Is there a way to get a list of stockholders who are invested in the PCD system? Thanks

    • SIx
      January 23, 2017 at 2:58 am

      DEPOSITORY

      It serves both the Equity and Debt markets providing secure settlement, core safekeeping and corporate action activities for community members. It also provides electronic, real-time access for members to keep track of balances under guardianship. It is capable of performing tax services for both the equities and fixed income markets.

      It has depository authority from the SEC for its market functions and a trust license from the BSP for its fiduciary and post-settlement functions.

      As a master custodian for the market, PDS Depository aims for heightened public protection and market integrity.

      Safekeeping

      As a depository for the equities market, PDTC centralizes management of shareholders information through dematerialization. Dematerialization eliminates the need to deliver paper certificates for securities traded, hence it eliminates the risk associated with maintaining physical certificates and speeds up the processing and settlement of a trade transaction. The depository services for the fixed income securities market are provided for securities issued in scripless form.

      The securities held in the depository are registered under the legal name of “PCD Nominee” for equity and “PDTC Nominee” for fixed income securities with the beneficial ownership reflected via book-entry credits to its securities accounts of the depository participants in the depository system.

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