New securities company formed for Lao stock market
New securities company formed for Lao stock market
A third securities company, Lao-China Securities Company Limited, expects to act as a link between the Lao stock market and potential companies and investors within the next four months, after more than two years of preparation.
“The company has to start providing services by June or no later than July,” an official of the Agricultural Promotion Bank (APB) said at a joint venture signing ceremony in Vientiane yesterday.
An agreement to establish the company was signed between APB, Lao Information Industry Co Ltd, and Pacific Securities Co Ltd of China.
Speaking on the occasion, APB General Director Mr Bouangeun Phongsavath said the agreement was finally being signed after the three parties had signed a Memorandum of Understanding in September 2010.
The ceremony was also attended by Mr Somphao Phaysith, Governor of the Bank of the Lao PDR, Ms Vatthana Dalaloy, Director General of the Securities and Exchange Commission Office (SEC), officials and businesses.
Mr Bouangeun said the company is now busy drafting regulations, agreements and other approval documents.
The APB official said “We will provide various services, including brokerage and underwriting.”
The tripartite entity will be part of the stock market structure. This means that companies or investors wanting to participate in stock market purchases will able to pass through the securities company.
The company will study and analyse those companies or investors to ensure they comply with the criteria set by the stock market committee.
After an investigation, the securities company will propose the company to the stock market committee for approval and possible registration on the Lao Securities Exchange. Stock market purchases must also be approved by the securities company.
Laos currently has two securities companies, Lanexang Securities Public Company (LXS) and BCEL-KT Securities Company Limited (BCEL-KT).
LXS is a joint venture between the Sacombank Securities Joint Stock Company of Vietnam and the Lao Development Bank. It was officially established in November, 2010, with initial registered capital of 100 billion kip (about US$12.5 million).
BCEL-KT is a joint venture between the Banque pour le Commerce Exterieur Lao Public and the Bangkok-based KT-Zmico Securities Co Ltd. The company was licensed by the Lao SEC in December 2010 to carry out four types of securities businesses, namely financial advisory, underwriting, dealing and brokerage.
vientiane times
