Applications for licenses to practice on the Yangon [Rangoon] Stock Exchange (YEX), set to open in October 2015, have been given the go-ahead by the Burmese Securities and Exchange Commission (SECM) by Maung Maung Thein, Deputy Minister for Finance and Revenue and SECM Chairman.
“We are ready to start it on October,” Maung Maung Thein said. “The Securities Exchange Commission will issue licences to the stock companies. It will be happen two or three months later.”
Underwriting, dealing, brokerage and consultancy businesses will be able to apply for the licenses, with certification costs ranging from 7 billion kyat (US$ 7 million) to 30 billion kyat, depending on the type of business. Licenses will be on sale from 19 January, with submission of applications closing on 27 February, according to a report in Global New Light of Myanmar.
These service providers will be able to undergo joint ventures with foreign companies in the drive to successfully establish the fledgling stock market.
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The Tokyo Stock Exchange and the Japan-based Daiwa Institute of Research signed an agreement with the Myanmar [Burma] Economic Bank (MEB) in December 2014, forming the Yangon Stock Exchange Joint-Venture Company, to help found and manage YEX, with 51% owned by MEB and the remainder controlled by the Japanese partners.
