SEC needs to be set up asap—Japan Exchange Group

Myanmar’s Securities Exchange Commission should be formed as soon as possible to prevent fraud or inappropriate selling of shares, the Japan Exchange Group (JEG) has urged the authorities.

“The Myanmar government should form the SEC as soon as possible to promote the quality of the Security Exchange Law,” a spokesperson from JEG said.

Last July, the law came into force. It says that the SEC must be formed in order to set rules and regulations. In addition, public companies must have the SEC’s approval to sell shares under the law’s requirements and also have to show their financial statements.

“The law was enacted. However, it is not clear whether selling shares without an SEC will be legitimate or not,” the JEG’s spokesperson continued.

“A while ago in Mandalay, a public company that didn’t say what projects it was working on started selling its Ks 100, 000-valued shares to the public. For each share, it is promising a 60-percent profit on shares within 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,” said Ngwe Thein, a money market and business expert.

source: Eleven Myanmar

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