Foreigners permitted to trade on the YSX pre-listing board

Foreigners will also be able to invest in the public companies listed on the pre-listing board (second board) of the Yangon Stock Exchange (YSX), said U Thet Htun Oo, YSX Executive Senior Manager.

The Pre Listing Board is a new trading board for public companies that have yet to qualify for a YSX listing to tap the market for funds that will help them expand and gradually meet the requirements to qualify for a listing on the YSX. It will also help encourage fund flows and deepen the Myanmar capital market.

“Foreigners will be able to trade on the pre-listing board as well as on the Mainboard,” U Thet Htun Oo said.

Unlike Mainboard-listed companies however, those trading on the pre-listing board will not qualify for a 5 percent income tax exemption. “The second board companies will enjoy the tax exemption when they qualify for a YSX Mainboard listing,” U Thet Htun Oo said.

YSX last month obtained approval to set up the pre-listing board for unlisted public companies from the President Office, the Ministry of Planning, Finance, and Industry and the Securities Exchange Commission of Myanmar. The pre-listing board will be launched within this year to enable investors to trade shares of unlisted public companies.

The YSX on October 28 recognised Myanmar Securities Exchange Centre, KBZ Stirling Coleman Securities, CB Securities, AYA Trust Securities, KTZ Ruby Hill Securities, UAB Securities as well as Trust Venture Partners Co., Ltd as advisors of the pre-listing board.

There are 17 of YSX listing criteria for public companies to be listed on the YSX, but only seven for unlisted public companies to enter the pre-listing board.

Candidates need to be public companies, have a minimum of 100 shareholders, be able to furnish audited financial statements, be tax compliant, be able to provide share certificates in electronic form and be compliant with the Securities Exchange Law and Regulatory and Supervisory Framework for Anti-Money Laundering and Combating the Financing of Terrorism.

There are more than 260 public companies registered under the Myanmar Companies Law. Only six public companies are listed on the YSX.

As most public companies do not meet the criteria for listing on the YSX, the pre-listing board will serve as a stepping stone towards that goal.

Source : Myanmar Times

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