The Phnom Penh Post and the Securities and Exchange Commission of Cambodia (SECC) are jointly publishing a series of articles to promote awareness of the crucial role the body plays and the growing securities market.

What is the SECC?

The SECC is the regulator tasked with managing, supervising and developing the securities sector in the Kingdom. HE Sou Socheat is the director-general.

The SECC’s major roles:

As a securities regulator, the SECC plays an important role in promoting and developing the securities sector by enacting the relevant laws and regulations, as well as policies and guidelines.

This is to ensure that the market functions effectively and in a transparent manner, that there is accountability, and – most importantly – to ensure public investors are protected.

The SECC has been constantly developing new financial products – such as equity securities, bonds, the collective investment scheme (CIS) and derivatives – as investment alternatives for both the public and for foreign investors. These also provide options for firms to consider which products are most suitable for them depending on the needs of the company and the market.

Additionally, the SECC’s role is to approve and renew licences for market participants, including, but not limited to, market operators – the Cambodia Securities Exchange (CSX) – securities intermediaries, cash settlement agents, securities registrar agents, transfer agents and paying agents, law firms and attorneys at law, valuation companies, translation services in the securities sector and auditing firms.

The SECC continuously supervises these firms to ensure that they comply with all rules and regulations.

Approval of issuers:

The SECC has the authority to approve all companies that wish to go public by complying with the requirements set forth in the laws and regulations. Currently, five companies have issued equity securities (stocks), while six others have issued debt securities (corporate bonds). They have all listed on the CSX.

Promoting awareness:

Another crucial role the SECC plays is raising awareness of market participants through training and examinations for those approved to work in the securities sector. So far, the SECC has provided 17 such training courses and exams for more than 1,200 qualified persons providing services in the securities sector.

Additionally, the SECC disseminates and promotes awareness of the securities sector to the public, high school and university students, and journalists, as well as potential clients through seminars and training programmes.

Mediation and adjudication:

Another significant function of the SECC that many investors and market participants are not aware of is that it plays a crucial role as mediator and adjudicator in disputes in the securities sector.

Disputing parties can request the SECC to act as mediator and adjudicator, with the process simple, convenient, time-saving, flexible, inexpensive and fully confidential.

The mediators and adjudicators are professional, highly skilled and totally ethical.

Prepared by: The Securities and Exchange Commission of Cambodia’s Department of Securities Market Development and International Relations.

E-mail: [email protected]

Phone: 023 885 611