Tight control on foreign stock investment
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Tight restrictions will be imposed to prevent foreign control on stock trading once the Yangon Stock Exchange (YSX) opens in October, said chairperson of the Securities and Exchange Commission of Myanmar (SECM).
Foreign funds and institutional investors would not be allowed to invest instantly in the bourse.
“We will use Company Act to control such foreign investment. If we allow foreign investors to invest freely on the stock market, they can pour huge capital into the bourse. That may take control of the small market and damage the macro economy," said Maung Maung Thein, the SECM chairperson.
"We are concerned that local investors will lose their place when foreign investors come. For this reason, we will allow foreign investment in the second phase.”
Dual listing may be included in the third phase, he said.
Through dual listing, a company listed on YSX can list on a stock market in another country.
