With a view to support the long term capital for economic enterprises, companies and investors, to efficiently protect the investments and contribute to the development and modernization of the state economy, the Capital Market Development Committee was organized on 1st July, 2008, led by the Minister for the Ministry of Finance and Revenue. Moreover, six sub-committees were formed on September 17, 2008, so as to provide effective and efficient assistance to main committee. These sub-committees are:
1. Sub-committee for the development of domestic securities market
2. Sub-committee relating to establishment and encouragement of public companies
3. Sub-committee regarding the enactment of the Securities Exchange Law
4. Sub-committee concerning with the establishment of securities companies
5. Sub-committee for training, educating and information concerning with the capital market and
6. Sub-committee for accounting and auditing standards for Securities Market
In addition, Road Map for the development of capital market in Myanmar has already been drawn up in accordance with the time frame for the development of ASEAN integrated Capital Market. There are three phases to be implemented in that Road Map. The first phase has already been implemented from 2008 to 2009. The second phase is being implemented from 2010 to 2012 and the third phase will be implemented from 2013 to 2015.
As an implementation of the bond market development in Myanmar, the Central Bank of Myanmar has issued 2-year government treasury bond and kyat ten million denomination of treasury bond has been issued apart from current issued treasury bonds since 1st January 2010.
In order to develop efficient market infrastructure and trading market of the government bonds, Myanma Economic Bank (MEB) and Myanmar Securities Exchange Center Co., Ltd (MSEC) have been appointed as underwriters of the sale of the Government Treasury Bonds since January 2010.
The Securities and Exchange Law (draft) has been approved by National Parliament and is being now submitted to People Parliament.
Regarding the development of Bond Market, under the ASEAN Bond Market Initiative (ABMI) program, with the assistance from the Japan-ASEAN Fund for the Technical Assistance (JAFTA), the ASEAN Secretariat assigned the Daiwa Institute of Research (DIR) for the Technical Assistance. The technical assistance Phase1 was implemented from June, 2011 to May, 2012.
Moreover, in order to support for the Capital Market Development in Myanmar, the MOU was signed by the Central Bank of Myanmar and Tokyo Stock Exchange (TSE)/ Daiwa Institute of Research Ltd. (DIR) on 29th May, 2012.
And then, another MOU has been signed on 13rd August, 2012 between the Central Bank of Myanmar and Policy Research Institute, the Ministry of Finance, Japan in order to provide rules and regulations related Securities and Exchange Law.
Under the MOUs, TSE/ DIR and PRI are providing technical assistance for capital market development in Myanmar.