"What I'm concerned is that most of the companies selling shares are not abiding by the company law. Legally, they are required to describe what business they are going to do at the time of registration. But some of the companies fail to do so. Their reports about shareholders are not sufficient. If such trends continue, it's dangerous. It may cause the loss of public confidence on capital market. I heard some foreigners are buying stakes in the local public companies that will be listed in the future," said Shinsuke Goto, director of Daiwa Securities Exchange.
Regarding with regulation of foreign investments in the stock market, Myanmar needs to review its company act and form the Securities Exchange Commission. If foreign investors are allowed to buy stocks without regulations, it will lead to unfair situations in the capital market, he added.
"We need to establish the Securities Exchange Commission. It must have sufficient authority and effective capacity to regulate public companies. We will do this as soon as possible. Next important point is that we need to encourage the companies to be listed. The education level of investors and employees at the stock market is also important," Shinsuke Goto said.
Myanmar has planned to launch the Stock Exchange in 2015 and it is widely expected only five to ten public companies will be listed in the first six months after the stock exchange emerges.
source: Eleven Myanmar