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SEC Thailand and SECC sign MOU to strengthen capital market cooperation on cross-border equity offering and issuance of depositary receipt

Tuesday 17 September 2019 | No. 116 / 2019

Bangkok, 17 September 2019 – SEC Thailand and Securities and Exchange Commission of Cambodia (SECC) has signed the memorandum of understanding concerning cooperation and exchange of information on cross-border equity offering and issuance of depositary receipt at the office of SEC Thailand. The aim is to push forward successful implementation of cross-border offering of securities that links the capital markets of both Thailand and Cambodia.

The MOU signed today is a result of a fruitful discussion between SEC Thailand and the SECC on the occasion of a courtesy visit to Cambodia in early August this year. This MOU reaffirms mutual intention to promote and support the successful implementation of cross-border equity offering and depositary receipt (DR) and serves as another important milestone to reflect the strong relationship between SEC Thailand and SECC in addition to the MOU signed in 2014.  This MOU covers the establishment and functions of the task force between SEC Thailand and the SECC to work on the process of implementing the cross-border equity offering and the issuance of DR, and also covers issuing guidelines to provide guidance for issuers who wish to offer securities, either cross-border equity offering or DR, in Thailand and Cambodia.

The MOU signing ceremony was honored by the presence of distinguished guests, including
Chairman and commissioner of the SEC Board, World Bank Country Manager for Thailand, President of the Stock Exchange of Thailand (SET), Secretary General of the Association of Thai Securities Companies (ASCO), Chairman of the Association of Investment Management Companies (AIMC), Chairman of the Investment Banking Club (IB Club), and representatives from Department of East Asia (Ministry of Foreign Affairs), Fiscal Policy Office (Ministry of Finance) and Federation of Thai Capital Market Organizations (FETCO), as well as high-ranking officials and executives from SECC, Cambodia Securities Exchange and private sector of Cambodia.

Ms. Ruenvadee Suwanmongkol, SEC Secretary-General,
said: “Cambodia and Thailand are well connected to each other in economic, social and cultural terms. Both SEC Thailand and the SECC also have been enjoying a friendly and cooperative relationship with each other both at the bilateral and multilateral levels over the past several years. The MOU signed today thus marks a significant milestone in enhancing capital market cooperation between the two regulators to make a strong contribution to the successful implementation of cross-border equity offering and DR with the aim of allowing issuers from both Cambodia and Thailand to list or make an offer of their equity securities outside the issuer’s home jurisdiction.  With this strong collaboration, it is expected that a corporation from Cambodia would become the first foreign company listed on the Stock Exchange of Thailand, after the SEC regulation on cross-border equity offering became effective in 2015. DR is also another financial instrument that has been received with great interest by the businesses in both countries. Thus, we strongly believe that this MOU will create greater business opportunities as well as sustainable growth and prosperity of the region.”

H.E. Mr. Sou Socheat, Director General of SECC,
said: “An additional MOU signing today is the witness of long friendship, market development and cooperation between the SECC and SEC Thailand. With this MOU, it will provide alternative ways for companies both in Cambodia and Thailand to access to capital, help expand the issuers’ businesses, increase their liquidity derived from trading in more than one exchange and access to larger pool of potential investors. In addition, we are sure that this MOU’s implementation will lead to a good model for the cooperation in the region and we are optimistic that capital markets in the region will grow together.”

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