CMIC v. DSI (G.R. No. 231715. March 19, 2018)


CASE DIGEST: [G.R. No. 231715, March 19, 2018]. CAPITAL MARKETS INTEGRITY CORPORATION V. DIVERSIFIED SECURITIES, INC., ET AL. G.R. No. 231715 (Capital Markets Integrity Corporation v. Diversified Securities, Inc., et al.) and G.R. No. 232123 (Chemical Industries of the Philippines, Inc., et al. vs. Diversified Securities, Inc.).

The CA correctly affirmed the Decision of the SEC dated June 3, 2014 that Diversified Securities, Inc. (DSI) did not act in bad faith and violate the Securities and Regulation Code and the Philippine Stock Market-Market Regulation Division Rules on the correct liquidation, period and sale to substituted buyers, of purchased securities. The CA and the SEC correctly set aside the monetary penalties, reprimand and order of restitution of shares imposed by CMIC on DSI absent a showing of bad faith and deliberate violation of the latter of their agency relationship.

There being no reversible error in the Decision of the Court of Appeals (CA) dated August 12, 2016 in CA-G.R. SP Nos. 136018 and 136035, the petition in G.R. No. 231715 is DENIED. The Decision of the CA denying the appeal of Capital Markets Integrity Corporation (CMIC) and affirming the Decision of the Securities and Exchange Commission (SEC) dated June 3, 2014 in SEC En Banc Case No. Ol-H-283 is AFFIRMED.

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