The Securities and Exchange Commission of Myanmar will announce winners of underwriter licenses this month, ahead of the launch of the Yangon Stock Exchange later this year, SECM chairman and Deputy Minister
for Finance and Revenue U Maung Maung Thein said Saturday.
The SECM will select winners from 18 underwriting applicants for the Yangon Stock Exchange, the deputy minister told to the Global New Light of Myanmar.
Preparations for launching Myanmar’s first exchange, with the abbreviation YEX, would be completed in July, the deputy minister said.
The debut of the YEX has been postponed from October this year to late November or early December to make way for the country’s 8 November general election, announced four days ago by the Union Election Commission, he added.The SECM has received 57 service provider applications for the YEX.
According to figures released in May, there were 20 applications for underwriters, 30 for consultants and seven for brokers and dealers.
SECM invited applications for the four service license categories in January, setting different capital requirements for each.
License costs range from K30 million in paid-up capital for consultancy businesses to K15 billion for underwriters, according to the deputy minister.
An underwriting license also allows operation in the other three businesses areas.
Joint ventures with foreign firms have been allowed in all four categoriesto speed up the development of the stock market.
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 and Revenue Ministry and the remainder by the Japanese partners.
By Aye Min Soe