Logo of Phnom Penh Post newspaper Phnom Penh Post - Govt opens licencing for securities industry

Govt opens licencing for securities industry

Govt opens licencing for securities industry

THE Securities and Exchange Commission of Cambodia (SECC) will from today receive applications from businesses seeking licences to operate in the new securities industry, according to an announcement Friday following an October prakas, or edict.

Firms wishing to operate as securities underwriters, dealers, brokers, representatives or in investment advisory or representation will have until March 1 to apply, according to the announcement. The SECC’s Department of Intermediaries Supervision will handle the applications, it added.

“After receiving applications for licences, it will take just one month ... to evaluate whether the applicant will be granted a licence or not,” Ming Bankosal, director general of the SECC, said Sunday.

The maximum number of licences available for securities-related firms to operate in the Kingdom has been set, he said, declining to disclose the figure. The SECC may establish a bidding process should the number of applicants to operate in the industry be too high, according to Friday’s announcement.

The announcement represented the latest step towards Cambodia’s first securities market, said Ming Bankosal. After repeated delays, the exchange is not expected to open until year's end.

“After these firms have been licensed, they will work with potential issuing companies to enable them to apply to the SECC for approval to issue securities,” he said.

According to Friday’s announcement, firms seeking to operate as securities underwriters must have minimum capital of US$9.52 million. Securities dealers need minimum capital of $6 million, and brokers require $1.42 million. Investment advisory firms need a minimum of just $96,000, while an investment advisory representative will be required to lodge a securities bond of $4,800 with the National Bank of Cambodia. The new regulations also stipulate certain requirements of human resources and professional experience.

Tong Yang Securities Inc of South Korea is finalising its documentation to apply for a licence in all areas of securities work in Cambodia, according to Han Kyung Tae, chief representative of the firm’s Phnom Penh office.

Tong Yang Securities had started working with a few firms in preparation for the first initial public offerings, he said.

MOST VIEWED

  • Stock photo agencies cash in on Khmer Rouge tragedy
    Stock-photo companies selling images from S-21 raises ethics concerns

    A woman with short-cropped hair stares directly into the camera, her head cocked slightly to the side. On her lap is a sleeping infant just barely in the frame. The woman was the wife of a Khmer Rouge officer who fell out of favour, and

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • Defence Ministry denies weapons in smuggling case came from Cambodia

    After a Thai national was arrested last week for allegedly smuggling guns from Cambodia to Thailand, Cambodia's Defence Ministry has claimed the weapons seized during the arrest are not used in Cambodia, despite the fact that both types of rifle seized are commonly found in

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the