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April 01, 2020

Foreigners can start trading on YSX in March: SECM

People look at the electronic board showing the stock exchange rate in Yangon Stock Exchange.  Photo: Phoe Khwar
People look at the electronic board showing the stock exchange rate in Yangon Stock Exchange.  Photo: Phoe Khwar

The Securities and Exchange Commission of Myanmar (SECM) will allow foreigners to invest in the local equity market from next month.
“Regarding foreign participation on the YSX, they will be allowed to start trading shares on the YSX by March, and the details on foreign trades on the exchange will be announced next month,” said an official from the YSX.
The Securities and Exchange Commission of Myanmar, under the Ministry of Planning, Finance and Industry, issued a notice on 12 July, 2019, announcing that foreigners would be allowed to invest in shares listed on the YSX.
Securities companies will monitor the daily trades of foreigners, in keeping with the rules and regulations, so that they do not exceed the limit set for each listed company.
In addition, the SECM is striving to promote listing of companies on the YSX and proceed with foreign participation on the exchange, the official added.
At present, shares of five listed companies — First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), and TMH Telecom Public Co. Ltd — are being traded on the stock exchange.
The YSX held a seminar on ‘Foreign Participation in Myanmar Stock Market’ on 14 December, 2019 at the Yangon Stock Exchange.
At the seminar, U Than Aung, founder and CEO of Maximax Solution Corporate Advisory and Executive Learning Institute, presented investors’ perspective on foreign participation in the Myanmar stock market. U Thet Htun Oo, executive senior manager of the Yangon Stock Exchange, discussed the advantages of foreign participation in the stock market, offering insights into experiences of other developing countries. He also highlighted how foreign participation would entail better capital inflows, long term and sustainable investment, encourage good corporate governance, and support market orientation, and then discussed YSX trends.
In accordance with Section 42 (a) of the Securities and Exchange Law and Section 4 of the Trading Participant Business Regulations, the YSX has granted trading qualifications to the following securities companies — Myanmar Securities Exchange Centre Co. Ltd. (MSEC), KBZ Stirling Coleman Securities Co. Ltd. (KBZSC), CB Securities Limited (CBSC), AYA Trust Securities Co. Ltd. (AYATSC), KTZ Ruby Hill Securities Co. Ltd. (KTZRH), and UAB Securities Limited (UABSC).
Investors have to send their buy or sell orders to the YSX through the securities companies who have been issued a license by the SECM as well as a trading qualification by the YSX, according to the stock exchange.
The YSX was launched three years ago to improve the private business sector. It disseminates rules and regulations regarding the stock exchange and knowledge of share trading through stock investment seminars.
To boost trading, the YSX has doubled its stock trade matching time from two to four per day. In addition to this, it has held promotional events to attract new investors and encourage existing investors to trade more actively. The stock exchange has also sought the government’s support to get more public companies to participate in the stock market and help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge. — Ko Htet (Translated by Ei Myat Mon)

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