Nay Pyi Taw, Dec 9 (IANS): Myanmar's first ever stock exchange began operation in the former capital of Yangon on Wednesday with six local listed companies and investors initially selected to act as players in the stock exchange market.
The Yangon Stock Exchange, which is marked as a milestone to start with emergence of capital market in the country, is operated by the Myanmar Economic Bank in partnership with Japan's Tokyo Stock Exchange and Daiwa Securities Group, Xinhua reported.
Speaking at the opening of the Yangon Stock Exchange, attended by Vice President U Nyan Tun, Finance Minister U Win Shein said when the new Myanmar Company Law comes into effect, foreign companies, joint ventures and foreign investor will be allowed to participate as players.
He said that Yangon Stock Exchange is a market which enables to support the development of the market-oriented economy effectively and to encourage and support the capital market which is necessary for the development of the national economy.
Every transaction is set to be done in local currency. While the purchase of shares by investors is unlimited, unusually large investment will be scrutinised, said Deputy Finance Minister Maung Maung Thein earlier who is chair of the Securities and Exchange Supervisory Commission.
Maung Maung Thein urged the firms to make collaborative efforts in ensuring the development of the stock market.
The commission granted four kinds of services licenses, underwriters, dealers, brokers and consultants, and prescribed different levels of capital requirement for each.
The service providers are also allowed to operate with foreign firms under joint ventures in anticipation of speeding up the development of stock market.
Capitalised at 32 billion kyats (over $32 million), the Yangon Stock Exchange is being operated under joint venture between Myanmar and Japan with the Myanmar Economic Bank (MEB) sharing 51 percent.
Japan's Daiwa Institute of Research Ltd. shares 30.25 percent and Japan Exchange Group 18.75 percent.
More than two years before launching the first stock exchange, Myanmar enacted the Securities and Exchange Law in July 2013.