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Securities market ‘will reap huge benefits’, says Socheat

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HE Sou Socheat, the director-general of the Securities and Exchange Commission of Cambodia

Securities market ‘will reap huge benefits’, says Socheat

The Securities and Exchange Commission of Cambodia (SECC) – the regulator for the securities industry in Cambodia – has a positive message for the year ahead after the difficulties faced from the Covid-19 pandemic in a turbulent 2020.

In 2021, we expect to have two more listed companies on the Cambodia Securities Exchange (CSX) and see an increase in trading activities.

The securities market is rapidly becoming seen as a better alternative for the owners of businesses and enterprises in Cambodia who wish to mobilise long-term capital for business expansion.

The benefits of doing so include more than just generating capital as trust in a company – which is key to the sustainable growth of any business – is increased by demonstrating transparency.

The mission of the SECC is to ensure the orderly running of the securities market, guaranteeing transparency, accountability and sustainable development.

In this regard, in order to align with the vision and mission of the SECC, the promotion of initial public offerings (IPOs) and market liquidity are always priority tasks for a securities regulator.

The diversification of financial products is another leading strategy.

For securities trading, investors and the public may consider preserving an amount of cash for investing in the securities market.

Recently, the CSX announced that the Mobile Trading System (MTS) is being offered for free of charge until the end of 2021, which is a positive development allowing investors to trade securities more easily and with lower costs.

MTS is a newly developed system from the CSX, through which investors can trade stocks quickly, securely and conveniently.

Meanwhile, the Collective Investment Scheme (CIS) market will be launched in 2021, which should stimulate lively trading on the Cambodian securities market, as well as promote the efficiency of collecting the remaining cash in the economy.

CIS is a type of business model allowing any fund management company to raise funds or cash from a group of investors and/or the public to invest in a specified project.

Raising awareness through training and the dissemination of information as well as building market confidence through strengthening law enforcement and raising professional standards in the securities market are also strategic priorities for the SECC in 2021.

A mechanism for the lending and borrowing of securities is currently being studied and is expected to launch in 2021.

For the future of the securities market, the SECC also expects to finalise the relevant provisions and examine the possibility of approval in 2021.

Along with all its local activities, the SECC also plays an active role on the international stage, with the SECC to be a vice-chair at the 2021 ASEAN Capital Markets Forum (ACMF), which will be chaired by Brunei.

The ACMF is a high-level grouping of the Asean securities regulators established under the auspices of the regional bloc’s finance ministers, whose primary responsibility is to develop regional securities market integration.

In this role, the SECC has a strong belief that we will be able to reap huge benefits for the CSX and the securities markets of the other Asean members, especially those whose bourses are still new, such as Cambodia.

HE Sou Socheat, the director-general of the Securities and Exchange Commission of Cambodia

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