THE Securities and Exchange Commission of Cambodia (SECC) held its first seminar on corporate debt securities with the private sector Wednesday in a session involving 70 companies designed to build understanding of the new instruments, which will become available following the launch of the exchange.
“The stock market is a new venture for Cambodia, so it’s essential to make companies understand it,” said Ming Bankosal, SECC director general. “This is also a step towards [launching] Cambodia’s stock market.”
This is ... a step towards [launching] Cambodia’s stock market.
The seminar included the cooperation of Japan’s Nomura Research Institute, whose consultant Yutaro Oku gave a presentation on the two types of securities that would be available on the forthcoming bourse – bond or debt securities with fixed interest rates with no holders’ rights, and stocks or equities with fluctuating fortunes but a greater decision-making role for shareholders. The event was sponsored by the ASEAN secretariat and is one of a number of initiatives designed to increase understanding of the role and instruments of the forthcoming exchange.
The Ministry of Economy of Finance and new exchange commission have held a number of seminars on its future role, which adds to the
increasing body of published literature on bonds and securities now available in the Kingdom.
However, it remains unclear when the securities exchange will open following a series of delays.
The government had set a deadline of the end of 2009 for opening the exchange, a joint venture with the Korea Exchange (KRX), but Minister of Economy and Finance Keat Chhon said last week there was now no specific schedule for its launch.
He added that corporate governance would have to reach the required standard before the launch of the exchange.
Kim Eun-hye, South Korean President Lee Myung-bak’s spokesman, said last week during an official state visit to Phnom Penh that the new bourse would not be ready until the end of next year, according to South Korean news reports.