Myanmar refutes critique on planned stock exchange establishment

Myanmar refutes critique on planned stock exchange establishment YANGON, Jan. 14 (Xinhua) -- The Myanmar government has refuted a critique over probable failure to set up a stock exchange in the country, saying that the establishment of the stock exchange is a business rather than politics, official sources said Wednesday.

Referring to a critique that Myanmar's first planned stock exchange is likely to fail and is only to show off timing politically with the upcoming 2015 general election in October- November, Myanmar Deputy Finance Minister U Maung Maung Thein said "We will be able to exit the list of countries with no stock exchange soon."

Noting that the capital market plan is progressing on schedule, U Maung Maung Thein, who is also chairman of the Securities and Exchange Commission, said the target on establishment of the stock exchange is going to be met and the aim of the move is to lay a solid foundation for the next generation with a single step before stepping forward.

More talks to raise the public awareness of the stock market are planned in Yangon and Mandalay, he added.

Myanmar's Yangon Stock Exchange Joint Venture Co. Ltd, scheduled to be launched in October this year, will be run by a joint venture company with Myanmar Economic Bank holding 51- percent stake and two Japanese firms -- Daiwa Institute of Research Ltd and Japan Exchange Group -- sharing 30.25 percent and 18.75 percent, respectively.

A small number of private companies with impressive business performances have applied for listing on the stock exchange which initially calls for highlighting quality.

Following the establishment of the Securities and Exchange Commission, Myanmar is inviting applications for service providers for its first ever prospective Yangon Stock Exchange, setting Feb. 27 as a deadline for submission of applications.

The commission has announced granting four kinds of service licenses -- underwriters, dealers, brokers and consultants, prescribing different levels of capital requirement for each.

The winners for the service licenses are expected to be announced in mid-April.