Home Insider Security License Applications Sought

Security License Applications Sought

As Yangon Stock Exchange opening gets closer, the Securities and Ex- change Commission of Myanmar (SECM) has invited companies to apply for securities license. Deputy Minister for Fi- nance and Revenue Chairman of the SECM, U Maung Maung Thein said that SECM will grant four kinds of service licenses: under- writers, dealers, brokers and consultants with different capital requirement for each category.

The brokerage license requires MMK 7 bil- lion, underwriting MMK 15 billion, for deal- ing and consultancy businesses, 10 billion and 30 million kyats respectively. With the largest amount of requirement, a license in underwriting will allow the license holder to operate in other fields. Myanmar’s requirements for security license are one of the highest globally. The SECM has started selling application forms for security license on 19th January and applications must be submitted by February 27th.

Myanmar’s first stock exchange, Yangon Stock Exchange (YSE) is expected to be launched in October 2015. Japan’s Tokyo Stock Exchange and the Daiwa Institute of Research Ltd signed an agreement with the Myanma Economic Bank in founding Myan- mar’s first stock exchange in December, 2014 and the market will be run by Yangon Stock Exchange Joint-Venture Company. Myanma Economic Bank under Myanmar’s Finance and Revenue Ministry holds 51% of the shareholding while the rest is owned by Japanese partners.