Master plan for development of securities sector underway

Master plan for development of securities sector underway

The Securities and Exchange Regulator of Cambodia (SERC) is gathering inputs from stakeholders to develop a draft Master Plan for the Development of the Securities Sector 2025-2035.

Speaking at a consultation workshop on the draft master plan on Monday, Sou Socheat, Director-General of the Securities and Exchange Regulator of Cambodia, said that the draft master plan for the development of the securities sector 2025-2035, which received technical assistance from the Asian Development Bank, is the second in the preparation of this consultation workshop.

The first workshop was held on November 1, 2024, in Kep province.

SERC is currently updating its Financial Sector Development Strategy, which was initially set for 2016-2025, to cover the period 2025-2030. This update experienced delays due to the Covid-19 pandemic, but SERC anticipates approval and implementation of the new strategy soon, he said.

The implementation of these strategies includes a careful consideration of the strengths, weaknesses, opportunities and threats and the state of market development, as well as the important role of the securities sector in supporting the achievement of Cambodia’s Vision 2050 and the Sustainable Development Goals.

“It is time to put forward a master plan for the development of the securities sector, which will outline the path for regulators and regulated entities to follow, while leaving room for flexibility to ensure that this document is a living document,” Socheat said.

SERC will continue to receive more input before reviewing and approving the master plan for the development of the securities sector for 2025-2035 from the Non-Banking Financial Services Authority, he said.

In collaboration with the Asian Development Bank, the master plan for the development of the securities sector for 2025-2035 would be ready by the end of June this year, based on the review and approval by government, he added.

The CSX, which launched trading in 2012, is a joint venture between the Cambodian government holding 55 percent of the stakes and the Korean Exchange, owning the remaining 45 percent.

The Cambodia Securities Exchange (CSX) continues to demonstrate steady growth, with 25 listed companies as of April, according to a report.

These firms include 11 companies listed as equity securities and 14 companies as debt securities.

The listed entities have collectively mobilized approximately $549 million from the securities market as of April of this year. The funds raised to date have been utilised by listed companies for various purposes, including business expansion, infrastructure development, and working capital.

khmertimeskh