Despite delays in the process, Myanmar will get the Securities Exchange Commission this month or next, according to Daiwa Securities Group, which is helping Myanmar authorities set up a stock market here. The Government of Myanmar plans to launch the stock exchange in 2015.
Although Parliament passed a Securities Exchange Law on July 31, 2013, it’s implementing by-laws and regulations remain in the pipeline.
The number of public companies in Myanmar raises questions about the emergence of a capital market. Currently, there are 142. The number will increase significantly, but many experts say there are still not enough for a viable stock exchange. Most companies remain private, and there are numerous reasons why they are either unable or unwilling to turn themselves into public companies.
Sources have said that some foreign investors have purchased shares of local public enterprises that plan to list in future in the hope to boost capital gains. These purchases are illegal. To allow foreign investment in the stock market, the country may also need to amend the foreign investment act. The Myanmar Companies Act places limits on foreign ownership of companies registered here, generally in the form of ratios between foreigner and Myanmar nationals, but rules will be required in the stock exchange to ensure these ratios are sustained.
Worries are growing that Myanmar’s stock exchange might end up like those of Cambodia and Lao, which have only two or three companies listed on them. From my point, I can say Myanmar won’t face the destiny of Cambodia and Lao as Japan has assisted Myanmar