Public warned to beware of scam

MANDALAY—A public company in Myanmar’s second largest city is trying to scam the public by offering high revenues in return for investment, Ngwe Thein, a money market and business expert has told Myanmar Eleven.

“A public company that doesn’t say what projects it is working on is selling its Ks 100, 000 valued shares to the public. For each share, it is promising a 60 percent profit on shares in three years – starting in 2014-2017. After 2017, the company says, it will pay 50 percent of revenues for each share. It is not legitimate and the public should be aware of it,” Ngwe Thein said.

Currently there are about 100 companies running as public companies. Experts say there are no such legitimate public companies for the Myanmar Stock Exchange, which is still being implemented.

“Many public companies have applied to be listed under the Myanmar Stock Exchange. In order to be listed, they have to meet qualifications,” said Shigeto Kashiwazaki, managing director of the Daiwa Institute.

Daiwa is the Japanese company that is helping Myanmar to implement its own stock exchange by 2015.

source: Eleven Myanmar 

http://www.elevenmyanmar.com/index.php?option=com_content&view=article&id=5110:public-warned-to-beware-of-scam&catid=33&Itemid=356