Myanmar aims to launch bourse by 2015

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MYANMAR-JAPAN-SKOREA-ECONOMY-FINANCE-STOCKSMyanmar, the only ASEAN country that has no stock exchange, will continue pushing ahead with its plans to establish a bourse in the commercial hub of Yangon by the end of 2015, according to the country’s Central Bank Deputy Governor Maung Maung Win.

Win said at an investor event on May 29 in Yangon that the proposed Yangon Stock Exchange (YSE) is needed for fundraising by local businesses that currently rely on bank loans only.

A new securities and exchange law is expected to be discussed in parliament over the summer with a view to it being passed before autumn, the Irrawaddy News reported.

However, there are additional necessities to set up the YSE. The country will need securities companies, accounting firms and law firms to support a capital market, said Koichiro Miyahara, senior executive officer at Japan Exchange Group, which is advising the Myanmar government on the proposed exchange. The Japanese government is supporting the securities legislation process through its ministry of finance.

At present, few Myanmar companies are expected to be ready to list by 2015. Five to ten could list during the YSE’s first year of operation, with 10 to 20 listed by the end of 2017. Draft rules show that a minimum capital amount of 500 million kyat ($525,000) will be needed, with aspirant companies needing to show two years’ profitability. YSE-listed companies will need a minimum of 100 shareholders and minority shareholders will have to account for at least 10 per cent of total equity. The balance sheets of the listed companies must be made public, a practice so far unheard of in the country where most of the big companies are somehow associated to the nomenklatura.

It is also not clear yet what foreign participation will be permitted once the exchange is up and running.

 

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Reading Time: 2 minutes

Myanmar, the only ASEAN country that has no stock exchange, will continue pushing ahead with its plans to establish a bourse in the commercial hub of Yangon by the end of 2015, according to the country’s Central Bank Deputy Governor Maung Maung Win.

Reading Time: 2 minutes

MYANMAR-JAPAN-SKOREA-ECONOMY-FINANCE-STOCKSMyanmar, the only ASEAN country that has no stock exchange, will continue pushing ahead with its plans to establish a bourse in the commercial hub of Yangon by the end of 2015, according to the country’s Central Bank Deputy Governor Maung Maung Win.

Win said at an investor event on May 29 in Yangon that the proposed Yangon Stock Exchange (YSE) is needed for fundraising by local businesses that currently rely on bank loans only.

A new securities and exchange law is expected to be discussed in parliament over the summer with a view to it being passed before autumn, the Irrawaddy News reported.

However, there are additional necessities to set up the YSE. The country will need securities companies, accounting firms and law firms to support a capital market, said Koichiro Miyahara, senior executive officer at Japan Exchange Group, which is advising the Myanmar government on the proposed exchange. The Japanese government is supporting the securities legislation process through its ministry of finance.

At present, few Myanmar companies are expected to be ready to list by 2015. Five to ten could list during the YSE’s first year of operation, with 10 to 20 listed by the end of 2017. Draft rules show that a minimum capital amount of 500 million kyat ($525,000) will be needed, with aspirant companies needing to show two years’ profitability. YSE-listed companies will need a minimum of 100 shareholders and minority shareholders will have to account for at least 10 per cent of total equity. The balance sheets of the listed companies must be made public, a practice so far unheard of in the country where most of the big companies are somehow associated to the nomenklatura.

It is also not clear yet what foreign participation will be permitted once the exchange is up and running.

 

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