- establishes the securities and exchange commission, the main regulatory body which will supervise the securities market;
- sets out the licenses available for securities businesses (dealing; brokerage; underwriting; investment advisory and company’s representative);
- sets out the framework for the establishment of the stock exchange;
- provides for the establishment of an over-the-counter market;
- sets out the prohibited acts in relation to securities trading (e.g. insider trading) and the relevant penalties; and
- provides for the establishment of a securities depository and clearing business.
Recent reports indicate that the proposed opening of the stock exchange is planned for 2015.
While this is an exciting development for the establishment of Myanmar’s capital markets, further progress must also be made to issue the implementing regulations required for the Securities Exchange Law, update the Myanmar company law legislation (which we understand is underway) and establish a robust regulatory and reporting framework which will be able to withstand the scrutiny of domestic and international investors.
Nonetheless, the new Securities Exchange Law is another step towards the modernization of Myanmar which brings promise of a bright future for the country.
Other Key Myanmar Legal Updates – July/August 2013