Makati Stock Exchange vs SEC Case Digest

Title

:

MAKATI STOCK EXCHANGE vs SECURITIES AND EXCHANGE COMMISSION

Citation

:

G.R. No. L-23004 June 30, 1965

Ponente

:

Facts

:

BENGZON, C.J.:

The Securities and Exchange Commission denied the Makati Stock Exchange, Inc., permission to operate a stock exchange unless it agreed not to list for trading on its board, securities already listed in the Manila Stock Exchange.

Issue

: Whether or not the SEC may “in the public interest” validly impose such a condition?

Held

:

NO. It is fundamental that an administrative officer has only such powers as are expressly granted to him by the statue, and those necessarily implied in the exercise thereof. The SEC cites no provision of law supporting its rule. Neither did the Commission make any explanation on how it could be necessary in the performance of its functions. For all practical purposes the SEC’s order would make it impossible for MSEI to operate. So its permission would really amount to a prohibition.

The Legislature has specified the conditions under which a stock exchange may legally obtain a permit; it is not for the SEC to impose others.