Phnom Penh, October 26, 2010 AKP --
The Securities and Exchange Commission of Cambodia (SECC) is scheduled to announce early next month the companies that get licenses as securities as securities firms and securities representatives for the upcoming Cambodia’s Stock Exchange, according to Chinese News Agency Xinhua.
“We have granted the licenses to the qualified companies for these services already,” Ming Bankosal, director general of SECC, which is the regulator of the upcoming stock market, said on Sunday, declining to disclose how many companies were granted the license.
“The names of the companies, which were granted the licenses for securities firms and securities representatives, will be officially released on November 2 by the Minister of Economy and Finance and SECC’s Chairman Keat Chhon,” he said.
Securities firms provide services such as understanding business, trading business and brokering business, and for securities representatives provide services as investment advisory firm and investment advisory representative.
In March, 22 companies, mostly commercial banks, had been short-listed for the licenses by SECC.
According to SECC’s prakas, edict, on the licensing of securities firms and securities representatives, to operate as securities underwriter, the firm must have minimum capital of 40 billion riel, or 9.46 million U.S. dollars. Securities dealer with the minimum capital of 25 billion riel, or 5.91 million U.S. dollars and broker requires 6 billion riel, or 1.41 million U.S. dollars.
And for an investment advisory firm, it needs a minimum of 400 million riel, or 94,600 U.S. dollars, while an investment advisory representative will be required to lodge a securities bond of 20 million riel, or 4,800 U.S. dollars with the National Bank of Cambodia.
The certain requirements such as human resources and professional experience are also a must for the license, said the prakas.
It’s learned that at least four banks have been granted the licenses. Those are OSK Bank of Malaysia, ACLEDA Bank, Canadia Bank and Tong Yang Securities of South Korea.
The Cambodian Securities Exchange is planned to launch by July next year after it has delayed two times already.--AKP