Nov 2, 2015

10 companies shortlisted for underwriter licences

Ten domestic banks and joint-ventured companies have been shortlisted for underwriter licences for the Yangon Stock Exchange, according to Dr Maung Maung Thein, deputy minister for finance on 31 October.

“The shortlist includes banks. I don’t remember their names. It is not the issuance of licences. We allow domestic and joint-venture investments only, not 100-per-cent foreign investment,” Maung Maung Thein said.

The deputy minister met representatives from the 10 shortlisted companies at the Exchange Certificate Supervisory Commission Office in Yangon on October 24. At the meeting he said the firms would not necessarily earn a profit for five years. They could operate their services if they could bear losses for five consecutive years, he said.

The deputy minister said the aspiration was to ensure the emergence of a derivative market and futures market soon after the launch of equity markets. The commission had decided to ensure emerging companies followed the rules to safeguard the interests of the people, he added. Companies had to deposit Ks15 billion at the Myanma Economic Bank, Maung Maung Thein said. Licences would be granted after staff, offices and ICT were inspected. The companies were to serve as supervisors when the stock exchange opened. The next step was to expand bond markets, he added.

The exchange is due to launch in early December. The commission will issue four kinds of licence: underwriter, dealer, broker and consultant.

Source: Eleven Weekly Media