YSX companies free to decide level of foreign ownership

YSX companies free to decide level of foreign ownership

Phoe Wa/The Myanmar Times

The Yangon Stock Exchange (YSX) will allow listed companies to decide the number of shares available to foreigners.

Under the Myanmar Companies Law, foreign investors are allowed to a hold a maximum stake of 35 percent in Myanmar citizen-owned companies.

To trade on the YSX, resident foreigners must open a Myanmar kyat-denominated current account, namely a Resident Kyat Account for Securities (RKAS) account. Non-resident foreigners should open an RKAS account and a second current account denominated in foreign currency, namely the Non-Resident Kyat Account for Securities (N-KAS).

Foreign traders must pass a Know Your Customer (KYC) test before they can open a trading account.  Moreover, they have to adhere to Myanmar’s anti-money laundering and counter terrorism laws. The entire process will be supervised by the Myanmar Financial Intelligent Unit and is part of efforts to combat money laundering and illegal cash.

The Securities and Exchange Commission of Myanmar (SECM) announced on March 6 that foreigners can open accounts to trade shares of YSX listed companies starting from March 20. The YSC was first launched on December 9, 2015.  There are currently six companies listed on the bourse.

Source: Myanmar Times

317total visits,1visits today