Tuesday, 4 June 2013

Handful Myanmar’s companies meet stock exchange requirements: Security expert

Only a handful of Myanmar’s public companies can meet the operating standards of a stock exchange, Soe Thein, Executive Director of Myanmar Securities Exchange Centre Co Ltd, said on Wednesday.


Myanmar is planning to set up a very first stock exchange in the country to create the financial markets.

There are now over 50 public companies in Myanmar, most of which have been formed after the country’s recent economic reforms. Most of them, however, are not enough systematically organized to fulfill the requirements of the stock exchange, Soe Thein noted.

He said, “Public companies need to publicize their information in a complete manner. They must well prepare the accounts for audit. Among 50 public companies in Myanmar, only five or six of them will meet such standards.”

Myanmar Parliament is expected to pass the Securities Exchange Law in July as the parliamentary discussions on the subject have reached the final stage.

Stock Exchange Committee (SEC), which will set the requirements the stock exchange listing, will be formed when the Securities Exchange Law is passed.

“When the law is passed, the public companies, whether listed or not on the Stock Exchange, will be required to abide by it. I think, when SEC becomes a strong organization, it will be able to enforce the rules and regulations on the public companies,” Soe Thein said.

Myanmar aims to launch the Stock Exchange Market by 2015.

source: Eleven Myanmar

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