Malaysian-owned Cambodian Public Bank (Campu Bank) on Wednesday was granted a licence to act as Cash Settlement Agent (CSA) at the local stock market.
A CSA handles clients’ cash settlement accounts and resolves cash transfers to buyers and sellers involved in stock transactions at the Cambodia Securities Exchange (CSX).
Phan Ying Tong, regional head of Indo-China Operations at Campu Bank, said the accreditation reflected the trust the Securities and Exchange Commission of Cambodia (SECC), the market regulator, had in the bank.
“The accreditation as a Cash Settlement Agent paves the way for more collaboration with SECC and CSX,” Tong said at the licence handover ceremony.
“It also brings added convenience to our customers, who can now carry out securities trading through our wholly-owned subsidiary, Campu Securities, and settlement through Cambodian Public Bank, which provides a one-stop service,” he said.
SECC director-general Sou Socheat said the local securities market continues to experience strong growth. The number of investors and trading volume expanded significantly last year, as did public awareness of the CSX.
“The securities sector is expanding, and financial services are improving. I believe Campu Bank will benefit from these positive trends,” he said.
“My team and I would like to extend a warm welcome to Cambodian Public Bank as they become the newest CSA. I believe today is the first day of a long cooperation to improve the local securities market,” he said.
CSX CEO Hong Sok Hour welcomed the presence of Campu Bank in the local stock market.
“I believe that Cambodian Public Bank, which is a subsidiary of one of the largest regional banks, will provide excellent services that will contribute to the development of the securities market here.”
According to Socheat, by the end of last year, SECC had issued 22,000 investor IDs. Last year, the market index rose to 870.65 points, with the market capitalisation reaching $802 million.
Trading volume reached its highest point in the bourse’s history, with over 15 million shares traded worth a total of $37 million
“In 2020, we expect seven more companies to go public. Four of them will raise funds in the equity market, and the rest will issue corporate bonds,” said Socheat.