Myanmar warns against possible illegal stock trade

Myanmar's Securities and Exchange Commission has warned against possible illegal trading of stock exchange in the wake of the beginning of sale of shares in Myanmar's first ever Yangon Stock Exchange in March, an official report said Wednesday.

The commission announced that "it intends to identify and take action against any person or company that sells stock by illegal or non-transparent means."

Myanmar's first ever stock exchange made a debut in Yangon on Dec. 9, 2015, announcing six initially listed local Myanmar companies and investors to act as players in the stock exchange market.

The Yangon Stock Exchange (YSX), which is marked as a milestone to start with emergence capital market in the country, is operated by the Myanmar Economic Bank in partnership with Japan's Tokyo Stock Exchange and Daiwa Securities Group.

The six listed companies include First Myanmar Investment, First Private Bank, Great Horkham, Myanmar Agri-business Public Corporation, Myanmar Citizens Bank and Myanmar Thilawa SEZ Holding.

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.

Capitalized at 32 billion kyats (over 32 million U.S. dollars), the YSX is being operated under joint venture between Myanmar and Japan with Myanmar Economic Bank (MEB) sharing 51 percent, Japan's Daiwa Institute of Research Ltd 30.25 percent and Japan Exchange Group 18.75 percent.

More than two years before launching the first stock exchange, Myanmar enacted the Securities and Exchange Law in July 2013. Enditem