Dec 28, 2014

Four types of exchange certificate business licenses to be available, says Deputy Minister of Finance

Four types of exchange certificate business licenses, which are an important part of the stock exchange market, will be available, said Dr Maung Maung Thein, Deputy Minister of Ministry of Finance and Chairperson of the Exchange Certificate Supervision Board (ECSB), on December 14.

“Four types of licenses will be permitted under the category of ‘Securities Company.’ The first one is an underwriter license. If a company sells 100 shares for one dollar each, one cent of every dollar will go to the underwriter because the underwriter takes the risk. The next type is dealer license, which is just for companies that buy and sell cars and estates. Underwriters will not engage in commerce all the time; they will only underwrite when an IPO starts,” he said.

“The third type is a broker license, and the last one is consultant license,” he added.

The ECSB is expected to announce the criteria for stock exchange licences and begin accepting applications in January. The Ministry of Finance will open the Yangon Stock Exchange in October 2015 in cooperation with Diawa Co, Japan.

Source: Eleven Weekly Media