Download Contemporary Securities Market in Cambodia

Securities Market
in Cambodia
1
Mr. Polen SO,
Director of Securities Market Supervision Department
SEC Cambodia
Contents
2
Regulatory Framework
Market Infrastructure
1.
2.
•
•
•
•
•
•
3.
4.
Securities and Exchange Commission of Cambodia
Primary/ Secondary Market Players
Securities Intermediaries
IPO process
Requirement to trade
Trading Mechanism
Listed Companies
Challenges and Opportunities
source: article IV,
IMF
1. Regulatory Framework
4
2001
• Vision and Financial Sector Development Plan for 2001-2010
• Financial Sector Development Strategy for 2006-2015: updated FSDP
2001-2010 (Currently 2013, Financial Sector Blueprint 2011-2020)
2006
• January 10: Law on Government Securities
2007 • October 19: Law on the Issuance and Trading of Non-Government Securities
200
8
• July 23: Sub-decree on the Conduct and Organization of the Securities and
Exchange Commission of Cambodia
• April 08: Sub-decree on Implementation of Law on Issuance and Trading
of Non-Government Securities
2009
• And subsequently, other Prakas as shown at www.secc.gov.kh
2. Market Structure
5
(SECC)
Trading Result
-Matching Buying/ Selling
Order
-Buy/Sell Order
CSD: Central
Securities
Depository
Market Operator
Trading
transaction
results
CSO: Clearing &
Settlement
Operator
Trading Result
Cambodia Securities Exchange (CSX)
Buy or Sell
Order
Securities Firm
Investors
Buy or Sell
Order
Transaction
CSAs: Cash Settlement
Agents
Securities and Exchange Commission of
Cambodia (SECC)
6
What’s the SECC?



SECC is the regulator in the securities industry in
Cambodia in the purpose of contribution to socioeconomic development through capital mobilization from
public/ securities investors to meet the demand of
financing for investors.
Established on July 2008
Official Inaugurated on 29 April 2009
Securities and Exchange Commission of
Cambodia (Cont.)
7
SECC Board member
Minister of Economy and Finance: Chairman
Ministry of Economy and Finance
Member
National Bank of Cambodia
Member
Ministry of Commerce
Member
Ministry of Justice
Member
Council of Minister
Member
Director General of SECC
Member
2 Securities Experts
Member
1. Securities and Exchange Commission of
Cambodia (Cont.)
8
 SECC Structure
SECC
Internal Audit Unit
Director General
Deputy Director
General
Dep.
Administration
and Finance
Dep.
Securities
Issuance
Deputy Director
General
Dep.
Intermediary
Supervision
Dep. Legal
Affair
Deputy Director
General
Dep.
Securities
Market
Supervision
Dep. Research,
Training,
Securities Market
Development and
IRs
Primary and Secondary Market Players
9
Securities and Exchange Commission of Cambodia (SECC)
Key Players
Primary Market
 Issuers
 Securities
Underwriters
 IPO team
Secondary Market
Other Players
 Securities Registrar
Agent
 Securities Market
 Securities Transfer
Operator (CSX)
Agent
 Securities Clearing and
 Securities Paying
Settlement Operator
Agent
 Securities Depository
 Professional
Operator
Accounting firms and
 Cash Settlement Agent
External Auditors
 Securities
 Valuation Companies
Dealer/Broker
 Law Firms
Investors
Securities Intermediaries
10
7 Securities
Underwriters
•
•
•
•
•
•
•
Tong Yang Securities (Cambodia) Plc.
OSK Indochina Securities Limited
Cana Securities Ltd.
Campu Securities Plc.
Cambodia-Vietnam Securities Plc.
SBI Royal Securities Plc.
Phnom Penh Securities Plc.
1 Securities
Dealers
• Golden Fortune (Cambodia) Securities Plc.
3 Securities
Brokers
• ACLEDA Securities Plc.
• Sonatra Securities Plc.
• CAB Securities Limited.
2 Investment
Advisors
• Angkor Capital Advisors Co.,Ltd.
• F.U.G.I. Gold Co., Ltd
IPO Process
11
1.
Preparation
1.1. submit intent
letter to SECC
1.2. Appoint an
unterwriter
1.3. Create an IPO
team
1.4. Due diligence
2. Listing
Eligibility
Review
2.1. Submit listing
eligibility review
application to
CSX
2.2. Approval for
listing eligibility
review
3. Initial
Public
Offering
4. Official
Listing on
CSX
3.1. Submit application 4.1. Submit application
for IPO to SECC
form on official
3.2. Pricing via Book
listing to CSX
Building Process 2.2. Approval for
3.3. Apply for confirofficial listing
mation on price
from CSX
3.4. Submit application
for approval on
term of offering
3.5. Subscription
3.6. Report result to SECC
Requirement: To start trading
12
1. Choose a
Securities Firm
- Choose a securities
firm which is member
of the CSX
2. Open a
Trading Account
-Open a trading
account (a cash
account and a
securities account) at
your preferred
securities firm with
the attached
documents (incl. ID
(local), Passport
(foreigner), bank
account number,
Investor ID
(Requested from the
SECC)
3. Place Orders
Information needed:
1. Issue name;
2. Quantity;
3. Price;
4. Classification for bid or offer
Order can be done by: Written
document, phone, email or
Market Mechanism
13
Trading Hours & Trading Days :
 Trading days: From Monday to Friday, except public holidays
 Trading hours: From 8:00 am to 11:30 am
 From 08 February 2013, the Trading Execution is amended to 06 (six) times per
day- at 9:00 am, 9:30 am, 10:00 am, 10:30 am, 11:00 am and 11:30 am.
Receiving
Order
8 : 00 AM
(Market
Open Hour)
Receiving
Order
9 : 00 AM
(Execution)
9 : 30 AM
(Execution)
Receiving
Order
Receiving
Order
10 : 00 AM
(Execution)
10 : 30 AM
(Execution)
Receiving
Order
Receiving
Order
11 : 00 AM
(Execution)
11 : 30 AM
(execution)
Market Mechanism
14
 Base Price
• Base Price is the closing price of the previous trading day;
except when there’re stock dividend, capital increase, stock
split and reverse.
 Daily Price Change Limit : ± 5% of the base price
 Principle of Auction : executed through single-price
auction, based on the priority of price and time of the
submitted orders.
•
•
The lower offers shall have priority over higher offers, and higher
bids shall have priority over lower bids.
In case of the same price orders, the orders received earlier shall
have priority over the orders received later.
2 Listed Companies: 1st since April 2012
15
Company Name:
Phnom Penh Water Supply Authority
Industry
Classification:
[006101] Water
Utilities
Type of Listed
Shares:
Common Shares
No. of Listed
Shares:
86,973,162
Code:
KH1000010004
Symbol:
PWSA (រទសភ)
Listed Date:
18 April 2012
Website:
www.ppwsa.com.kh
2 Listed Companies: 2nd on 16 June 2014
16
Company Name:
Grand Twins International (Cambodia) Plc
Industry
Classification:
Garment
Manufacturing
Type of Listed
Shares:
Common Shares
No. of Listed
Shares:
40,000,000
Code:
KH1000020003
Symbol:
GTI
Listed Date:
16 June 2014
Website:
www.grandtwins.com.kh
Market trading activities of PWSA share
17
20,000
Volume (Right hand scale)
Price (Left hand scale)
800,000
15,000
600,000
10,000
400,000
5,000
200,000
0
0
IPO Price
17/06/2014
20/06/2014
24/06/2014
26/06/2014
30/06/2014
2/7/2014
4/7/2014
8/7/2014
10/7/2014
15/07/2014
17/07/2014
21/07/2014
23/07/2014
25/07/2014
29/07/2014
31/07/2014
4/8/2014
6/8/2014
8/8/2014
12/8/2014
14/08/2014
18/08/2014
20/08/2014
22/08/2014
26/08/2014
28/08/2014
1/9/2014
3/9/2014
5/9/2014
9/9/2014
11/9/2014
15/09/2014
17/09/2014
19/09/2014
8/10/2014
10/10/2014
14/10/2014
17/10/2014
21/10/2014
24/10/2014
28/10/2014
31/10/2014
Market trading activities of GTI share
18
Volume (Right hand scale)
Price (Left hand scale)
12,000
250,000
10,000
200,000
8,000
150,000
6,000
100,000
4,000
2,000
50,000
0
0
4. Challenges and Opportunities
19
 More supportive regulations
 Accounting standard and good corporate governance
for listed and non-listed company
 Promote more IPO, SMEs, and mechanisms to
promote the market liquidity
 Investor and other market participant education
20
Securities and Exchange Commission of Cambodia: www.secc.gov.kh
Cambodia Securities Exchange: www.csx.com.kh