57 apply for Yangon Stock Exchange service provider licenses

Pedestrians walk past a cultural heritage building where the Yangon Stock Exchange market will be established.
Pedestrians walk past a cultural heritage building where the Yangon Stock Exchange market will be established.

The Securities and Exchange Commission of Myanmar has received 57 service provider applications for the Yangon Stock Exchange, SECM chairman and deputy minister for Finance and Revenue U Maung Maung Thein said Thursday.
Among the applications, 20 are for underwriters, 30 for consultants or advisers and seven for brokers and dealers, he said, during talks on the development of the stock exchange, which is slated to launch on 1 October this year.
According to the chairman of the SECM, the commission plans to invite companies to seek listing on the Yangon Stock Exchange following the country’s traditional four-day New Year’s festival in mid-April.
Currently, the commission is reviewing its listing criteria. Companies seeking to list should have transparency, good governance and trust, he added. The Yangon Stock Exchange project is on track and the project is now more than 60 percent complete. SECM invited applications for the service licenses — underwriters, dealers, brokers and consultants — setting different levels of capital requirements for each in January.
A license for underwriting requires K15 billion (around $15 million); for dealing K10 billion; for brokerages K7 billion and for
consultancy business K30 million as paid-up capital, according to the deputy minister.
An underwriting license, which tops the capital requirements, also allows operation in the other three businesses areas.
The four kinds of service providers are also allowed to have joint ventures with foreign firms in anticipation of speeding up the development of the stock market, U Maung Maung Thein said. The Yangon Stock Exchange, Myanmar’s first, will have the abbreviation YEX.
Japan’s Tokyo Stock Exchange and Daiwa Institute of Research Ltd signed an agreement with the Myanma Economic Bank to help establish and run the exchange in December, 2014.
The market will be run by Yangon Stock Exchange Joint-Venture Company, with a 51 percent stake owned by the Myanma Economic Bank under Myanmar’s Finance and Revenue Ministry and the remainder by the Japanese partners.

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