Myanmar picks 10 firms as players of stock market

A total of 10 companies have been tentatively selected to act as players in Myanmar's first ever Yangon Stock Exchange Market, planned to be launched in early December, an official report said on Sunday.

Deputy Finance Minister U Maung Maung Thein, who is also chair of the Securities and Exchange Supervisory Commission, urged the firms to make collaborative efforts in ensuring the development of the stock market.

He said Yangon Stock Exchange is set to start as an equity market.

The emerging stock exchange with the abbreviation YEX was originally scheduled to debut in October but was postponed to December to make way for the country's upcoming general election set for Nov. 8.

The Yangon Stock Exchange will be operated by the Myanmar Economic Bank in partnership with Japan's Tokyo Stock Exchange and Daiwa Securities Group.

Once the operation starts, Asia Green Development Bank (AGD), Myanmar Agribusiness Public Corporation (MAPCO) and First Myanmar Investment Co., Ltd. (FMI) will sell their stock shares in the market among others.

Every transaction will be done in local currency. While the purchase of shares by investors is unlimited, unusually large investment will be scrutinized, said U Maung Maung Thein.

The commission granted four kinds of services licenses, underwriters, dealers, brokers and consultants and prescribed different levels of capital requirement for each.

The service providers are also allowed to operate with foreign firms under joint ventures in anticipation of speeding up the development of the stock market.

Under an agreement signed in Nay Pyi Taw in December 2014, the Yangon Stock Exchange Joint Venture Co. Ltd will be set up in partnership among Myanmar Economic Bank (MEB) sharing 51 percent, Japan's Daiwa Institute of Research Ltd 30.25 percent and Japan Exchange Group 18.75 percent.

Myanmar enacted the Securities and Exchange Law in July 2013 to pave the way for the launch of the country's first stock exchange. Enditem