Daiwa urges upgrades ahead of bourse launch

The domestic banking sector needs an upgrade, including a code of conduct, ahead of the launch of the stock exchange market, said Masahiro Ushiyama, senior managing director of consultants Daiwa Institute of Research Ltd (DIR), last week.

The think tank will work with about 10 to 12 public companies, including banks, to assist the transition to public trading, Mr Masahiro said on November 1, though he did not reveal which companies.

Speaking from his office in Yangon, he said DIR plans to provide computer terminals, kiosks, biometric authentication and digital reports for investors.

He also said it’s vital that all involved with the new stock exchange adhere to a shared code of conduct.

“We believe that the most important thing is to build consensus among all stakeholders in Myanmar,” he said.

“As soon as government officials complete the consensus-building and the Security Exchange Centre starts operations, we will start to modify the material,” he said.

Mr Masahiro recommended banks establish subsidiaries as securities companies, as he expects “maybe two or three times” the current number of public companies after one year of stock exchange operation.

Mr Masahiro said it’s important to set up settlement banks to clear payments between listed companies and buyers, saying that while the commercial banks are doing settlements between banks in transferring money, they have yet to provide the service for public companies.

While banks currently do manual settlement, he said, online settlement can be expected alongside the new stock exchange market, which he expects to be fully ready for trading in October 2015, later than Deputy Minister for Finance U Maung Maung Thein’s estimate of late 2014.

Source: Myanmar Times

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