Local companies dealing with securities bonds can set up a joint venture with foreign partners if they want to, according to Myanmar Securities Exchange Commission (MSEC).
The Yangon Stock Exchange is set to be established before October this year.
“We will allow both the 100 per cent citizen ownership and joint venture with foreign partners in four kinds of service providers. This is because the Myanmar citizens are wet behind the ears in this field [stock exchange business]. Of course, the citizens should hold the greater ownership ratio in JV,” said Dr Maung Maung Thein, the deputy minister for finance and chairperson of MSEC.
A set of 13 parameters for the companies that will deal with securities bonds was released on January 12 directing any applicant to submit form to Directorate of Investment and Companies Administration, to buy treasury bonds or open an account at the State-owned bank with 10 per cent of the allocated capital, the directors of the applying company must have at least one year experience in this field or other financial businesses, having enough capacity for IT intensive workplace, and the capital must not be loans from a certain bank and needs to validate its source of income.
The required capitals are: Ks 15 billion (US$15 million) for indirect distribution of securities bonds, Ks 10 billion for direct dealing, Ks 7 billion for agent licence and Ks 0.03 billion for consultant licence. Those with licence for indirect distribution can operate all four types of business in stock exchange.
Source: ELEVEN MYANMAR