Outdated law restricts foreign firms' entry to stock exchange
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Restrictions in existing laws will make it difficult for foreign firms to get listed on the Myanmar Stock Exchange, Soe Thein, executive director of Myanmar Securities Exchange Centre Co Ltd, said.
Myanmar is planning to launch a stock exchange by 2015 with technical assistance from Japan.
Myanmar’s parliament is expected to pass the Security Exchange Law next month, which will lay the foundations in law for the stock exchange.
“In its early days, foreign companies will find it difficult to participate in the Stock Exchange, because the Myanmar Companies Act (1914) will place restrictions on them. I hope when the Securities Exchange Law comes out, it will not control the participation of foreign firms [in the Stock Exchange],” said Soe Thein.
He advocated participation by foreign companies for the development of the country’s stock market, and suggested that the 99-year-old Companies Act should be reviewed to reflect current conditions.
The start of the stock exchange will see only a few local companies listed, with small and medium-sized enterprises following later, securities experts said.
