Myanmar is planning to launch a stock exchange by 2015 with technical assistance from Japan.
Myanmar parliament is also working on the Security Exchange Law for the purpose and is expected to pass it in July.
Soe Thein said, "At the beginning of the
Stock Exchange, foreign companies will find difficult to participate in
it, because Myanmar Companies Act (1914) will place restrictions on
them. I hope when the Securities Exchange Law comes out, it will not
control the participation of foreign firms [in the Stock Exchange]."
He advocated participation of foreign
companies in Myanmar Stock Exchange for the development of stock market
in the country. He suggested that Myanmar Companies Act which was passed
in 1914 should be reviewed to reflect the current conditions of
Myanmar.
On the start of stock exchange, only a
few local companies will be listed, and small and medium enterprises
will follow later, securities experts said.
Shinsuke Goto, Director of Daiwa
Securities Group, said, "A criterion for listing on the stock exchange
is that a company must be profitable for two consecutive years to be
listed on the market. Therefore, new companies will not be considered,
with the exception for those new ones possessing highly organized
management systems. We aim to build trust for Myanmar Stock Exchange."
Daiwa Securities Group is providing technical assistance for implementing Myanmar Stock Exchange Market.
source: Eleven Myanmar
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