Logo of Phnom Penh Post newspaper Phnom Penh Post - Subdecree signed outlining stock exchange regulations

Subdecree signed outlining stock exchange regulations

Subdecree signed outlining stock exchange regulations

Signing represents latest step towards establishment of exchange, say officials

THE Council of Ministers approved on Friday the draft of a subdecree detailing stock exchange regulations that officials described as necessary for establishing the exchange by the end of the year.

The subdecree was drafted by the Ministry of Economy and Finance in accordance with the Law on the Issuance and Trading of Non-Government Securities, which was passed by the National Assembly in October 2007.

The objective of that law, according to the website of the Securities and Exchange Commission of Cambodia (SECC), is to outline regulations for the exchange as well as for "operators in the securities markets who trade or provide financial services", including "public limited companies or registered legal entities that issue securities".  

The subdecree details procedures related to the management and control of securities in Cambodia in line with the International Organisation of Securities Commissions, an organisation of securities and futures markets regulators, according to a Council of Ministers press release issued Friday. The release states that the procedures are designed to ensure that the exchange operates "fairly, effectively, transparently and orderly".

SECC Director General Ming Bankosal said the approval of the subdecree would allow for the implementation of the October 2007 law. 

"Only with this subdecree can we issue regulations to control this sector," he said Sunday. "The subdecree will allow the SECC to authorise the establishment of the stock exchange and the listing of companies on the stock exchange. If there is no subdecree, everything will be bogged down and would not go forward."

A bond market will do a lot to help

companies to raise capital.

"Now that the subdecree has been approved, the SECC will prepare regulations such as a relevant prakas to inform companies about requirements to list on the stock market," he said.

The project director for the Korea Exchange (KRX) in Phnom Penh - the organisation working with the Cambodian government to establish Cambodia's exchange - said that the subdecree was an important step towards implementing the initiative, which was scheduled to be launched by the end of the year.

"This is critical for Cambodia's financial markets ... a bond market will do a lot to help companies to raise capital," said Inpyo Lee. He added that state-owned enterprises are hoping to float bonds on the new market.

The SECC, to be chaired by Minister of Finance Keat Chhon, is scheduled to launch officially on April 29.

ADDITIONAL REPORTING BY GEORGE MCLEOD

MOST VIEWED

  • WHO: Covid in Cambodia goes into new phase

    The World Health Organisation (WHO) in Cambodia said that Cambodia has reached a new phase of the pandemic with “decreasing case numbers, high vaccination coverage and a more transmissible circulating variant threatening a hidden surge”. In a press release on September 6, the WHO said that

  • Purging Sihanoukville’s past with a new masterplan

    Amid illicit activities, haphazard development and abandoned projects, the coastal city of Sihanouk province needs a reset to move forward. A new masterplan might be the answer to shake off its seemingly mucky image to become the Shenzhen of the south Gun toting, shootouts, police

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • Chinese may be first in tourism revival: PM

    Cambodia's tourism industry is gearing up to roll out the red carpet for Chinese travellers after Prime Minister Hun Sen on September 17 indicated that the Kingdom could soon throw open its doors to international holidaymakers vaccinated against Covid-19 – starting with guests from China. Cambodia Chinese

  • School reopening ‘offers model for other sectors’

    World Health Organisation (WHO) representative to Cambodia Li Ailan said school reopening process should be used as a role model for reopening other sectors currently mothballed by the Covid-19 pandemic. Li strongly supports the government’s decision to reopen schools, saying it is a decision

  • Tourism concerns laid bare

    To ensure the success of plans to reopen the tourism market for international visitors, Cambodia must pay utmost attention to two primary determinants – the ongoing paradigm shift in domestic tourism services towards the ‘new normal’, and the factors influencing choices of destinations among foreign holidaymakers.