Circulated prakas mark latest stage on road to stock exchange
CAMBODIA’S new stock exchange released two draft edicts on Monday to be opened for public consultation.
The two draft prakas were published by the Securities and Exchange Commission of Cambodia (SECC) and will be discussed by representatives from banks and private companies. The Cambodian Securities Exchange, regulated by SECC, is set to launch later this year.
The SECC will select banks with enough qualifications for this service."
The first draft document covers the granting of accreditation for cash settlement charged with managing cash resettlement for securities trading. According to the draft, the applicant must be a commercial bank with sound corporate governance, strong financial integrity and operational capacity, qualified human resources with adequate qualifications, and experience dealing with securities, banking, financial and commercial cash settlements.
The annual fee for a cash settlement agent is 40 million riels (US$9,570), it added.
“The SECC will select banks with enough qualifications for this service,” Ming Bankosal, SECC’s director general, said Monday.
He declined to say how many of the Kingdom’s 27 banks would be granted the accreditation.
In Channy, president and CEO of ACLEDA Bank, confirmed Monday that the bank will be one of the applicants for the service.
“We are interested because this [cash settlement] is one of our services, and we have the most branch networks in Cambodia. It is easy for us to do this work,” he said.
The second draft prakas detailed the attributes needed for the accreditation of lawyers providing legal services in the securities sector. To be accepted, lawyers must be registered on the list of the Bar Association of Cambodia, have a good reputation for at least three years, be a member of a law firm and have professional liability insurance.
Accredited lawyers will pay an annual accreditation fee to SECC of 500,000 riels ($120), the draft added.
Twenty-two companies applied to be licensed on Cambodia’s forthcoming stock exchange by the March 1 deadline. Potential entrants will now be short-listed, Ming Bankosal said on March 3.