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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