Myanmar Security Exchange Commission (MSEC) urged foreign traders to conduct trading on the Yangon Stock Exchange (YSX) in July 2020

The Myanmar Security Exchange Commission (MSEC) issued an order allowing foreigners to conduct trading on the Yangon Stock Exchange in July, but did not specify an exact date for start of the liberalizing of the stock market.

U Htay Chun, Member of the Commission, indicated that they will start allowing foreign traders early next year to allow time for the commission to make the necessary arrangements.

“We cannot start immediately. We need to prepare the exchange for taxation purposes, and to accept currency exchange rates which will make for a smooth experience,” he added.

The MSEC will allow foreign investors to buy shares up to a maximum of 30 percent of the value of a local company, and 35 percent for foreign companies. The other exception is the stock cannot be associated with immovable properties such as land.

Companies selling stock to foreign investors need to follow the rules and regulations set by the exchange.

When calculating the ownership of the foreign investors for a listed company, the commission will consider the ownership of the shares registered at the Yangon Stock Exchange as assets of foreigners.

The Yangon Stock Exchange was launched in December 2015, and there are now five listed companies: First Myanmar Investment Public Co (FMI), Myanmar Thilawa SEZ Holdings Public Co. (MTSH), Myanmar Citizen Bank (MCB), First Private Bank (FPB), and TMH Telecom Public Co (TMH).

Interested persons can visit the website ysx-mm.com for more information.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/ysx-welcome-foreign-traders-2020 )

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