SEEDIN TECHNOLOGY, Inc. and Eastern Securities Development Corp. have received permanent crowdfunding licenses from the Securities and Exchange Commission (SEC) in lieu of one-year provisional licenses.
“The grant of the permanent license to crowdfunding intermediaries and funding portals is part of the Commission’s efforts to promote crowdfunding as a safe and sustainable investment option for Filipino investors and to provide more fundraising options for the country’s SMEs (small and medium enterprises),” the SEC said in a statement on Monday.
SeedIn Technology and Eastern Securities’ applications to register as crowdfunding intermediaries were approved during the Feb. 23 meeting of the commission, sitting en banc. The companies now have to comply with the remaining requirements.
SeedIn Technology raises funds from investors for lending to Philippine SMEs. Singapore-based SeedIn Technology Holding Pte. Ltd. owns a majority stake in the firm.
The SEC said SeedIn Technology’s platform matches borrowers with registered investors, who are required to have bank accounts with a Philippine financial institution. Investors may also lend money through the platform via a foreign bank, subject to certain rules.
SeedIn Technology’s operations will be monitored by the SEC Markets and Securities Regulation Department for a year.
Eastern Securities is a stockbroker. Its Round One Platform will be the first equity-based crowdfunding platform to be licensed in the Philippines. It is also subject to initial monitoring, with the commission authorized to request data from the company for the first two years of its operations.
Both equity issuers and investors can use its Round One Platform, where issuers can conduct their fundraising activities. — Keren Concepcion G. Valmonte
