Securities and Exchange Commission of Myanmar

[OrganizationBackground]

1. The Securities Exchange Law (20/2013) was enacted on 31 July 2013, to establish a systematic Capital Market in Myanmar, to protect investor through Rules and Laws and to regulate market participants such as Public Companies, Securities Companies and Stock Exchange.
2. According to Chapter 3, Article 4 of this Law, the Securities and Exchange Commission of Myanmar (SECM) was formed with Notification No. (64/2014) dated 19-8-2014 issued by the Union Government. The Deputy Minister for the Ministry of Finance is chairman of SECM which has seven members. According to that notification, the Chairman and Commissioners of SECM are as follow:

(a) -Dr. MaungMaungThein (Chairman)

(b) -Dr. Tin Hla Kyi (Commissioner)

(c) -Daw Khin Lay Myint (Commissioner)

(d) -U Htay Chun (Commissioner)

(e) -Daw Tin Kyi U (Commissioner)

(f) -Daw Tin May Oo (Commissioner)

(g) -Director General of SECM (Secretary)

3. U Maung Maung Win, Deputy Minister for the Ministry of Planning and Finance was appointed as chairman of SECM with the notification(42/2016) dated 7 June 2016, by the Union government after Dr. Maung Maung Thein, former Deputy Minister resigned on 1st May 2016. Also the Union government appointed U Thein Myint (Retired Dy. DG of the office of the Auditor General of the Union) as a member of SECM on 6th February 2017 with notification (12/2017) instead of Daw Tin Kyi Oo in accordance with the Paragraph (12) of SE Rules. Besides, the State Administration Council appointed Daw Nwe Nwe Win (Retired DG for Budget Department) as a member of SECM on 1st April 2021 with notification (91/2021) instead of Dr. Tin Hla Kyi in accordance with the Paragraph (12) of SE Rules.
4. After that the State Administration Council appointed Daw Tin Tin Ohn(Retired DG of SECM) as a member of SECM instead of Daw Tin May Oo , Daw Thin Thin Aye (Retired Dy DG of Ministry of Legal Affairs) as a member of SECM instead of  U Htay Chun and Dr. Lay Kyi (Dy Rector of University of Economics, Yangon) as a member of SECM on 9^th November 2022 with notification (205/2022)  in accordance with the Paragraph (12) of SE Rules.
5. The Current Members of SECM are as follows:

(a) U Maung Maung Win (Chairman)

(b) U Thein Myint (Commissioner)

(c) Daw Nwe Nwe Win (Commissioner)

(d) Daw Tin Tin Ohn (Commissioner)

(e) Daw Thin Thin Aye (Commissioner)

(f) Dr. Lay KKyi (Commissioner)

(g) U Kyi Zin Tun (Secretary)

Policy

6.Our policies are as follow:

(a)  To reduce the inflation rate by changing from the currency in circulation to investment capital when the Securities Market and Local Bonds Market are developed at the same time.

(b)  To support the expansion not only Treasury Bonds but also Corporate Bonds and Municipal Bonds issuance.

(c)  ToperformtheimprovementofSecondaryorTradingMarket.

Objective

        7. Our objectives are as follow:

(a)  To spread the development of Stock Market and Local Bonds Market.

(b)  To obtain more investment opportunities for the public.

(c)  To expand the job opportunities and to collect the necessary capital easily by issuing share to the people from the public company.

Functions of SECM

        8. Our functions are as follow:

(a)  to issue securities business license;

(b)  to issue permit of stock exchange;

(c)  to grant a permit of the Over-the-Counter Market for trading unlisted securities.

(d)  to submit necessary advice to the Union Government in respect of matters relating to the securities business;

(e)  to supervise the securities business and carry out the inquiries and inspections;

(f)  to supervise the following organizations and persons so as to keep the accounts relating to their business in accordance with the relevant Myanmar accounting standards:

(i)  Public company

(ii)  Securities company

(iii)  Over-the-Counter-Market

(iv)  Stock Exchange

(v)  Persons who are carrying out or had carried out as responsible persons, members, staff and agents of any public company, securities company, Over-the-Counter-Market and Stock Exchange

(vi)  License-holder or lawyer, auditor and agent of such license- holder.

(g)  to carry out research and development for securities business and communicate with the organizations of other countries that supervise the securities business, and the businesses, departments and organizations related to such organizations to make securities business compatible to international standards.

(h) to carry out other functions and duties assigned by the Union Government.

Activities of SEC

9.SECM performed the following:

(a)  SECM gave the permit to conduct the securities business to YSX joint venture company limited on 27-4-2015.

(b)  SECM announced the criteria for the bank which will conduct the fund settlement regarding with the securities trading at YSX as the announcement no (3/2015) on 11-3-2015 in the state owned newspaper and according to the announcement, KBZ bank which catches up with the criteria according to was selected as the fund settlement bank for YSX.

(c) According to the Securities Exchange Law Section 7 sub section(a), SECM gave the underwriting business license to six securities companies namely, Myanmar Securities Exchange Centre and KBZ Stirling Coleman Securities Co.,Ltd  on 26-2-2016, AYA Trust Securities Co.,Ltd, CB Securities Co.,Ltd, KTZ Ruby Hill Securities Co.,Ltd  on 1-3-2016 and Amara Investment Securities Co.,Ltd on 20-11-2016 and then gave the Investment Advisory  License to ACE Invstment Advisory Co.,Ltd on 12-7-2018.

(d)  The grand opening of YSX was celebrated on 9-12-2015.

(e) SECM allowed to be listed to conduct securities business at YSX as the listed companies, First Myanmar Investment Public Co.,Ltd(FMI) was on 25-3-2016, Myanmar Thilawa SEZ Holdings Public Co.,Ltd (MTSH) was on 20-5-2016, Myanmar Citizens Bank Ltd (MCB) was on 26-8-2016, First Private Bank Ltd(FPB) was on 20-1-2017 and TMH Telecom Public Co.,Ltd was on 26-1-2018 respectively.

(f) SECM provided the first ever training for the staff from licensed securities companies and for those who interested in securities business and held securities representative license examination on 6-2-2016 and the second exam was on 14-5-2016 and the third exam was on 28-11-2018 and issued (123)  securities companies repressentative licenses for those who had passed  the exam.

(g)  SECM gave the Acknowledgement Certificate to 9 institutes which are training about Capital Market until October 2016.

(h)  SECM announced the prospectus format collaborated with DICA and MAC that to apply when public company has to prepare to get the full & fair information in a prospectus for the potential investors on 7-4-2016.