By Prak Chan Thul
PHNOM PENH, Aug 5 – The Securities and Exchange Commission of Cambodia has provisionally selected a number of financial firms that could operate on the Southeast Asian country’s stock market, which is due to open next year.
“We have had 22 firms applying to be underwriters, brokers and investment advisers,” Ming Bankosal, director general of the SECC, said on Thursday.
“We have chosen some of the companies, which now need to fulfil requirements on capital and other things within a month in order to get licences,” he said, adding he did not want to name any of them for now, or even say how many.
However, South Korea’s Tong Yang Securities <003470.KS> said it was among those selected to operate as an underwriter, dealer and broker.
“Over the next month, we need to meet the requirements to get the final licence,” its chief representative in Cambodia, Han Kyung Tae, told Reuters.
“The Cambodian government has made the decision to open the exchange in the middle of next year, and to meet the deadline. I think this is the first important step to issue the licence to investment banks so that they can begin their business activities. This is a major step,” he added.
In Channy, CEO of ACLEDA Bank, told Reuters his bank had also been chosen.
“This is one of ACLEDA’s plans, to participate on the stock market in Cambodia. Our goal as a broker will be to help our clients,” he said. “We are just waiting for the stock market to open.”
Another local lender, Canadia Bank, said it had been selected as an underwriter.
“Underwriting means basically we can do everything,” Vice-President Dieter Billmeier said, adding that Canadia might seek partners with experience of operating on a bourse.
But he said there was a lot more work to do to create the stock market and get all the relevant institutions ready.
“A lot of preparation work is necessary, such as the framework for companies for auditing,” he said.
“As you know, there are not many companies in Cambodia ready yet, except three or four government-run companies that could be listed on the stock exchange.”
He expressed confidence in the future of the bourse, despite delays in the timetable, especially as it was being set up with the help of the operator of the Seoul stock market.
“If it is correctly done and rightly done, as long as we don’t make the same mistakes as in Vietnam a few years ago, when they introduced the stock exchange. I believe prices on the stock exchange in Vietnam were overpriced — this is partly why they had a failure in the beginning.”
The daily Phnom Penh Post reported that OSK Indochina Bank, part of Malaysian financial firm OSK Holdings <OSKH.KL>, was also among those selected.
source: according yahoo.com/news