Cambodia and Nepal securities regulators are working together to develop their capital market regulation while enhancing the effectiveness and efficiency of the regulatory framework for the benefit of investors and stakeholders in both countries.
Speaking during a study visit by the Securities Board of Nepal (SEBON) on August 31, Sou Socheat, director-general of Securities and Exchange Regulator of Cambodia (SERC) said Cambodia’s securities sector has grown significantly over the decade.
There are a total of 20 companies listed on the Cambodia Securities Exchange, 11 of which have issued equity securities.
Nine of them are listed on the Main Board, which is a market for large capital enterprises, and two companies are listed on the Growth Board - a market for small and medium enterprises - while nine companies have issued corporate bonds.
Among bond issuers, Golden Tree Co Ltd issued the first green bond in Cambodia, which is in line with the ASEAN Green Bond Standard.
Socheat said altogether, 20 companies have raised $328 million capital via CSX, which has a total market capitalisation of $3.08 billion or 10.6 per cent of gross domestic product as of August 30, 2023.
SERC has also approved licences and accreditation to about 130 companies, including those dealing in securities, derivatives and collective investment schemes.
Meanwhile, Ramesh Kumar Hamal, chairman of SEBON, said the visit reflects his institution’s commitment to learn and exchange experience on the development of the securities market.
He said both regulators seek a common stance for cooperation in terms of regulatory framework to build both investors and issuance companies’ trust and confidence on the capital market.
Ramesh said it is important to foster stronger ties and knowledge between SEBON and SERC.
He believed the regulators can jointly develop the capital markets, particularly in ensuring its effectiveness, efficiency, transparency and with good regulations.
Separately, Socheat said the Securities Market of Nepal is mature, and therefore SERC has a lot to learn from, including its regulations.
“We can learn each other’s market structure and the operation of new securities instruments and contemporary issues related to securities and commodity exchange markets.”
