Licences will be issued this month to the securities companies which will trade on Myanmar’s first-ever capital market named “Yangon Stock Exchange”, according to the finance ministry.
“Myanma Economics Bank (MEB) has already signed a memorandum of understanding with the Japanese companies. The issuance of licences to companies will be done by the Security Exchange Commission. It will happen this month,” said Dr Maung Maung Thein, deputy finance minister.
The securities companies that meet nine standards from Japan and western countries will be chosen for the stock market.
On 23 December, Japan Exchange Group Inc, operator of the Tokyo Stock Exchange, and the Daiwa Institute of Research Ltd, have signed an agreement with the MEB to establish and run the stock exchange.
The Securities Exchange Commission, which was formed in August 2014 to supervise the stock and securities exchange, is working on the rules for the issuance of licences.
The Parliament passed a Securities Exchange Law in July 2013 and the bylaws and regulations will be passed soon.
The stock market will be run by Yangon Stock Exchange Joint-Venture Co, with a 51 percent stake owned by the MEB under the Ministry of Finance and Revenue, a 30.25 percent stake owned by the Daiwa Institute of Research Ltd and a 18.75 percent stake by Japan Exchange Group.
Efforts are being made to start trading in October 2015.
Source: ELEVEN MYANMAR