Tuesday, 4 June 2013

Outdated Myanmar laws restrict foreign firms' listing in Stock Exchange

Foreign firms will find difficulties to list on the upcoming Myanmar Stock Exchange because of restrictions in the existing laws, Soe Thein, Executive Director of Myanmar Securities Exchange Centre Co Ltd, said.


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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