SECC rolls out ID pilot programme
SECC rolls out ID pilot programme
The Securities and Exchange and Commission of Cambodia (SECC) has launched the Investor ID Online programme on a trial basis in a bid to draw in more investors during pandemic times.SECC director-general Sou Socheat told The Post on Thursday that the initiative by the securities regulator will facilitate and enhance the convenience for the public to participate on the Cambodia Securities Exchange (CSX).
Through the programme, he said, potential investors could more easily “obtain an ID for trading on our market.
“Investors previously had to go to a broker and request an ID for trading. From now on, investors can go on our online application and get the ID. It’s more convenient, faster and omits the face-to-face interactions required during the process, especially now in these challenging times.
CSX vice-chairman Ha Jong-weon told The Post that those interested in the stock market may apply directly to the SECC for an Investor ID via https://id.secc.gov.kh.
Ha said: “We understand that there are many people interested in our market, but they have not taken the time to see a broker and ask for an Investor ID or a trading account. This initiative will make it easier for them to apply for an Investor ID online from anywhere.
“Therefore, we will see a large increase in the number of Investor IDs for the market very soon. However, there is still KYC needed in the process of trading account opening at securities firms,” he said.
KYC, or Know-Your-Customer procedure, refers to the process in which financial service professionals authenticate and assess the identity, suitability and risks involved with maintaining a business relationship with a client.
Ha added: “Therefore, they still need to see a broker in order to have the account to trade in the market. After the Investor ID is approved, they will have the trading account opened immediately after meeting with securities firm.”
The CSX is also working with securities firms and the SECC to draw up a mechanism that allows opening trading accounts online, forgoing the need to deal with securities firms face-to-face. “We hope to make it happen soon as well.”
The SECC’s Socheat said the Investor ID Online programme is “currently in its trial stages and will be official launched soon if everything goes smoothly. Brokers will keep the public informed.”
There are 12 listed firms in the Kingdom – six stock-listed and six corporate bond-listed, according to the CSX.
On May 25, CSX CEO Hong Sok Hour said more than 25,000 individuals and companies have opened trading accounts at CSX.
