Thailand, Cambodia To Connect Capital Markets
Sep 18, 2019

Thailand’s Securities and Exchange Commission (SEC) and the Securities and Exchange Commission of Cambodia (SECC) on September 17 signed a memorandum of understanding to cooperate and exchange information on cross-border equity offerings and the issuing of depository receipts with the SEC.

Media reported that the two bourses began discussions in early August this year to revive a previous memorandum signed in 2014. Plans are now to the establishment a task force to implement cross-border equity offerings and the issuing of debt receipts. It also contains guidelines for those who wish to offer securities both in Thailand and Cambodia.

According to SEC secretary general Ruenvadee Suwanmongkol, with this collaboration, it is expected that a corporation from Cambodia will 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.

The partnership also supports Thailand’s 20-year national strategy to promote the country as a regional fundraising hub.

Sou Socheat, director-general of Cambodia’s SECC, said the memorandum offered an additional option to raise funds, enhance liquidity and expand business operations for Cambodian and Thai operators.

“This will be a good model for regional cooperation for capital markets in the region,” he said.