November 21, 2017

SECM to announce listing criteria, securities companies for Yangon Stock Exchange

People walk past the former building of the Central Bank of Myanmar which is being renovated for the Yangon Stock Exchange (YEX). Photo: Aye Myin Soe
People walk past the former building of the Central Bank of Myanmar which is being renovated for the Yangon Stock Exchange (YEX). Photo: Aye Myin Soe

Yangon, 17 May — The Securities and Exchange Commission of Myanmar will announce listing criteria and securities companies for the Yangon Stock Exchange in the near future, according to SECM.
The Yangon Stock Exchange will debut in October this year.
Union Minister for Finance U Win Shein called on the commission for timely completion of selecting the companies as he made tour of inspection Sunday of a building where the Yangon Stock Exchange will be established.
Establishing the stock exchange is not just for show and the project is being implemented in the interest of the country and the peoples, said the union minister.
The Securities and Exchange Commission of Myanmar has received 57 service provider applications for the Yangon Stock Exchange, SECM chairman and deputy minister for Finance Dr Maung Maung Thein said last month.
Among the applications, 20 are for underwriters, 30 for consultants or advisers and seven for brokers and dealers.
SECM invited applications for the service licenses — underwriters, dealers, brokers and consultants — setting different levels of capital requirements for each in January.
A license for underwriting requires K15 billion (around $15 million); for dealing K10 billion; for brokerages K7 billion and for consultancy business K30 million as paid-up capital, according to the deputy minister.
An underwriting license, which tops the capital requirements, also allows operation in the other three businesses areas.
The four kinds of service providers are also allowed to have joint ventures with foreign firms in anticipation of speeding up the development of the stock market.
The Yangon Stock Exchange, Myanmar’s first, will have the abbreviation YEX.
Japan’s Tokyo Stock Exchange and Daiwa Institute of Research Ltd signed an agreement with the Myanma Economic Bank to help establish and run the exchange in December, 2014.
The market will be run by Yangon Stock Exchange Joint-Venture Company, with a 51 percent stake owned by the Myanma Economic Bank under Myanmar’s Finance Ministry and the remainder by the Japanese partners.— GNLM

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