Securities and Exchange Commission of Myanmar (SECM)

Overview

The Securities and Exchange Commission of Myanmar (SECM) is Myanmar's securities market regulator, established under the Securities Exchange Law 2013 and operating within the Ministry of Planning and Finance. SECM was formally established in 2015 with the opening of the Yangon Stock Exchange (YSX). The regulatory environment remains significantly constrained by Myanmar's political situation since the February 2021 military coup d'état.

• Leadership appointments and regulatory stability uncertain following 2021 coup d'état

• SECM continues operations but under military government authority

• Market operations severely limited due to geopolitical instability

WARNING: Myanmar's regulatory environment is subject to significant political volatility. Users should verify current status through official sources before undertaking regulatory compliance activities. All information should be considered contingent on the political situation.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Capital Markets Structure

Securities Exchange:

• Yangon Stock Exchange (YSX) - Established 2015

• Primary securities trading platform

• Physical location: Yangon, Myanmar

• Very limited trading volume and market activity

• Currently 8 listed companies (as of 2024)

Market Segments:

1. Main Board (MB)

• Limited number of listed companies

• Most active trading segment

• Subject to listing standards and ongoing compliance

1. Pre-Listing Board (PLB) - Newly Operational (2024)

• Launched February 2024

• Operation Manual published February 22, 2024

• Designed to provide unlisted public companies fundraising opportunities

• Bridge to main board listing

• SECM Notification (1/2022): Second board approval (February 1, 2022)

• SECM Notification (1/2023): Registration procedures (June 28, 2023)

Market Participants:

• Listed public companies

• Securities trading companies and brokers

• Fund managers and investment advisors

• YSX operations team

Yangon Stock Exchange Operations

YSX Market Characteristics:

• Severely limited liquidity and trading volume

• Only 8 listed companies as of 2024

• Infrequent trading activity

• Limited institutional participation

• Foreign investor participation restricted [Note: Historical foreign participation restrictions; current policy Requires verification from official sources]

YSX Regulations and Conduct:

• Trading hours and mechanisms

• Settlement and clearing procedures

• Information disclosure requirements

• Trading halts and suspensions authority

• Market surveillance and manipulation prevention

Market Challenges:

• Insufficient trading volume for sizeable position entry/exit

• Underdeveloped market infrastructure

• Limited participation by institutional investors

• Constrained foreign investor access

Political Context and Market Impact

2021 Military Coup d'État: Requires verification from official sources

• February 1, 2021: Military seized power from democratically elected government

• Reversal of previous decade's economic progress

• Widespread opposition and civil unrest

• Sharp deterioration in investment climate

Economic Impact:

• Real GDP contracted over 20% from 2020-2024

• Severe currency depreciation

• Banking sector disruptions

• Capital flight and foreign investor exit

• Sanctions from international community

Securities Market Impact: Requires verification from official sources

• Market operations nominally continued but under military administration

• Significant reduction in trading volume and listed company participation

• Foreign investor participation severely restricted

• Market confidence and institutional participation collapsed

• Regulatory enforcement uncertain and unpredictable

Requires verification from official sources - Political stability and regulatory continuity cannot be reliably assessed. The status of SECM leadership, operational independence, and regulatory enforcement capacity is uncertain. Users should obtain current information through official Myanmar government and YSX sources before undertaking market activities.

Framework (from Securities Exchange Law 2013):

• Mandatory disclosure of material information

• Corporate governance requirements for listed companies

• Investor complaint and dispute resolution procedures

• Anti-fraud and market manipulation provisions

• Licensing and suitability requirements for market participants

Sanctions and Compliance Screening

SECM has nominal authority for:

• Anti-money laundering (AML) and counter-terrorist financing (CFT) compliance

• International sanctions screening

• Beneficial ownership identification

• Suspicious transaction reporting

Foreign Investor Access

Current Policy: Requires verification from official sources

• Foreign investor participation restrictions implemented at various times

• Current foreign participation policy uncertain

• Regulatory treatment of international transactions unclear

• Cross-border fund flows subject to government capital controls

Regulatory Powers

SECM Supervisory Authority (nominal):

1. Market monitoring and surveillance

2. On-site inspections of market participants

3. Information requests and regulatory data collection

4. License suspension or revocation authority

5. Administrative fines and sanctions

6. Criminal referral authority

Regulatory Role and Function

Legal Foundation

Primary Legislation:

• Securities Exchange Law (Law No. 20/2013) - Enacted July 31, 2013

• Establishes systematic capital market framework

• Defines SECM's regulatory authority and functions

• Creates licensing and supervision regime for market participants

• Provides enforcement mechanisms and penalties

• Covers listed companies, securities firms, and stock exchange operations

Key Legal Elements:

• Investor protection requirements

• Market conduct standards and anti-manipulation provisions

• Licensing requirements for securities operators

• Disclosure obligations for public companies

• Clearing and settlement arrangements

• Enforcement and sanctions authority

Implementing Regulations:

• SECM notifications and rules (primary enforcement tool)

• Additional ministerial guidance (variable implementation)

Licensing and Authorization Relevance

SECM maintains licensing authority over:

1. Securities Trading Companies

• Brokers and dealers

• Underwriters

• Market makers

• Client segregation requirements

• Capital adequacy standards

1. Fund Management Companies

• Collective investment scheme operators

• Asset management services

• Trust arrangements

1. Listed Companies

• Listing application requirements

• Ongoing disclosure and compliance obligations

• Corporate governance standards

• Audit requirements

Licensing Standards (framework from 2013 law):

• Minimum capital requirements

• Professional management requirements

• Corporate governance frameworks

• Fit and proper person assessments

• Compliance infrastructure standards

[UNVERIFIED: Current implementation and enforcement standards uncertain due to political situation]

Payments and Money Movement Relevance

The Securities and Exchange Commission of Myanmar (SECM) oversees securities settlement and post-trade infrastructure in Myanmar:

Payment Systems Governed or Overseen

The SECM oversees securities settlement infrastructure in Myanmar:

[Specific system names require verification from official sources]

Relationship to Other Regulators

IOSCO Status: Requires verification from official sources

• IOSCO principles framework referenced in Securities Law 2013

• Current IOSCO participation status uncertain

• International regulatory cooperation limited due to political conditions

Regional Participation: Requires verification from official sources

• ASEAN Securities Regulators Forum participation status uncertain

• Bilateral regulatory cooperation severely limited

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Securities and Exchange Commission of Myanmar (SECM)

• Parent Ministry: Ministry of Planning and Finance

• Primary Exchange: Yangon Stock Exchange (YSX)

• Address: Yangon, Myanmar

• Official Language: Burmese/English

Web Resources: [UNVERIFIED - May not be operational]

• Ministry of Planning and Finance: https://www.mopf.gov.mm/

• SECM Commission Page: https://www.mopf.gov.mm/en/page/finance/

• YSX Website: https://ysx-mm.com/

WARNING: Current operational status and contact information may be unreliable. Official verification through government channels recommended.

Notes on Naming and Language