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Citation : G.R. No. L-23004

June 30, 1965
Ponente : BENGZON, C.J.:

Facts :
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 SECs 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.