FOUR major banks have confirmed receiving in-principle approval for roles on Cambodia’s new stock exchange.

One banker described the move yesterday as “a progressive step” for the long-awaited bourse.

The Securities and Exchange Commission of Cambodia said yesterday that it had told companies this week whether they were picked to become securities firms and representatives on the exchange, fulfilling roles such as underwriters and brokerages.

SECC Director General Ming Bankosal declined to immediately reveal how many of the 22 applicants had been successful, saying that approvals were subject to ongoing fee payments.

However, four companies told the Post that they had already gained in-principle approvals.

They are Cambodian banks

ACLEDA and Canadia, together with Malaysia-listed OSK Indochina Bank and Tong Yang Securities, a leading investment bank in South Korea.

“ACLEDA has been granted approval as a proposed securities brokerage business,” said Svay Hay, vice president and head of the capital market division at the bank.

As a securities brokerage, the bank would be able to buy or sell securities on behalf of its clients in return for a commission.

“We are the largest bank here in terms of loans and deposits, with nearly 1 million customers. Thus we can serve our customers when they play the stock market,” he said.

OSK Indochina Bank announced in a statement to the Malaysian bourse that it had been given initial permission to act as a securities underwriter – which can advise on public offerings, investments and dealings.

Canadia bank vice president Dieter Billmeier confirmed yesterday his organisation had been given a green light, but did not say for which role.

Chief representative of Tong Yang Securities Inc-Cambodia, Han Kyung Tae, said his bank had been approved in principle for a full licence as an underwriter, dealer, broker and securities representative.

“It’s a progressive step towards the upcoming stock market,” he said.

He said that the company was working to prepare an initial public offering with “a couple of local firms”.

Senior government officials have said the Cambodian Securities Exchange (CSX) must launch by July next year “at any cost”.