Securities companies that plan to participate in the upcoming Yangon Stock Exchange will have to apply for at least one three licences, as well as meet other licensing and legal requirements, according to the Daiwa Institute of Research Co Ltd.
Daiwa’s managing director said that besides needing to register under the Myanmar Companies Act, each securities firm must have the word “securities” included in its name, be a limited company and meet investment and asset requirements.
Licences can be obtained from the Securities Exchange Commission, which has yet to be established.
Once it is established it will offer three types of licence: securities exchange certificates trading licence, securities exchange certificates services licence and securities exchange certificates underwriting license.
A Japanese adviser helping to set up the exchange said a successful securities company depends on highly qualified staff and a high level of information technology.
Myanmar currently has just two securities firms: Myanmar Securities Exchange Centre Co. Ltd. and Daiwa. Both will need to re-register after the SEC is established. Some analysts say more than 20 securities firms are required for a viable stock exchange.
There are 186 securities companies in the Philippines, 125 in Indonesia, 102 in Vietnam and 38 in Thailand.
Source: ELEVEN MYANMAR