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Newswire: Burma bourse



210511 :Daiwa expects Burma bourse approval soon
    BANGKOK, March 21 (Reuter) - Daiwa Securities Co Ltd, which
has been negotiating with Burmese authorities to set up a stock
market in Rangoon, expects approval for the venture to be given
soon, a company official said on Thursday.
    The venture involves a 50-50 partnership between a Daiwa
unit, Daiwa Institute of Research, and the state-owned Myanmar
Economic Bank to set up an over the counter (OTC) market to
trade shares of private Burmese firms, Hiseo Katsuta, general
manager of the institute in Bangkok, told Reuters.
    "We hope that final approval for the project will be given
in a month's time. It is up to the Burmese government," he said.
    The venture to set up the OTC market in Rangoon has been
under negotiation for more than two years. Daiwa has
representatives in Rangoon to oversee development of the
project.
    Burma, whose fledgling securities industry is not yet
organised for regular trading, is working on approval of a
securities and exchange law to facilitate the setting up of the
proposed OTC market.
    At present, there are more than 25 Burmese private firms. Of
these, four or five have shares that are traded in a local grey
market where there is no organisation or security for investors,
Katsuta said.
    "But share certificates are bought and sold privately by
investors in those firms. The planned OTC market will provide a
marketplace to match their orders and a legal framework so they
don't have to worry about being cheated," he said.
    The joint venture between Daiwa and Burma would also engage
in merchant banking activities, underwrite privatisations and
perform the functions of a brokerage on the OTC market, he said.
    The planned OTC market would form the basis for the eventual
establishment of a full-fledged stock market in Burma after
about five years, Katsuta said.
 REUTER



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                 |     Shimojima Ichiroo      |
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