Developing a stock exchange in Myanmar
January , 2015

 

Anew stock exchange (called Yangon Stock Exchange) is currently being developed in Myanmar. The new stock exchange will be located near Sule Pagoda Road in the downtown Yangon and its opening is scheduled in late 2015.

It is a welcoming move for the com- panies who are looking for new ways of fundraising instead of getting bank loans or offering shares in the OTC mar- ket. A new stock exchange in a develop- ing country would inject a new pool of liquidity (from local and overseas inves- tors) into Myanmar. However, we have yet to hear more information regarding the new stock exchange as below:

  1.  Who will be regulating and pro- viding oversight of the new stock market?
  2. What are the listing require- ments and procedures for local/ foreign companies who wish to be listed in the new exchange?
  3.  If there will be other products being offered in the new exchange beside securities (e.g. bonds and deriva- tives);
  4. What are the auditing standards to be adopted for the newly listed com- panies?
  5. If there will be changes in the Taxa- tion rules;
  6. What would be the qualifications for the underwriters (local banks or foreign banks) and the licensing re- quirements and procedures?
  7. What are the licensing requirements and procedures for the brokerage houses?
  8. If foreign companies/individual will be allowed to invest;
  9. What are the settlement and clearing processes?
  10. What would be the settlement cur- rencies? (e.g., Kyats, USD); and
  11.  Information requirements to be disclosed in the Prospectus for the lodgment to the new exchange and to potential investors;

The above information are desperately sought by potential would – be listed com- panies, audit firms, brokerages firms, issue managers, underwriters, local & foreign in- vestors. The information is important for them in order to prepare a timeline for the substantial administrative works and ap- proval process.

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