Sam Rainsy calls on Cambodians not to play the stock market

National Assembly: Heated debate on the adoption of the stock market law

12-09-2007
By Ky Soklim
Cambodge Soir
Translated from French by Luc Sâr

The CPP and the SRP are assaulting each others with arguments on the adoption of the stock market law.

The National Assembly held a debate on Tuesday 11 September on the stock market law. The draft law goes along with the initiation of a stock exchange planned for 2009. Keat Chhon, the minister of economy and finance, and opposition leader Sam Rainsy exchanged heated verbal arguments during the parliament session.

Opposition leader Sam Rainsy, himself a former Minister of Economy and Finance, announced that he supports the draft law because it serves to setg up of a stock market. But, Sam Rainsy doubts the independence and the honesty of government officials at the Securities and Exchange Commission of Cambodia (SECC). To Sam Rainsy, if the operation is not conducted well, the stock market could become a cheating place, a place where the "criminals will prosper." Having no confidence in the stock market, Sam Rainsy called on the public not to play the stock market.

Reacting to this argument, Keat Chhon explained that “the government is currently preparing laws to prevent the risk issues raised by Sam Rainsy, and that it is setting up this stock exchange.” The formation of the stock exchange is planned for 2009 with the support of the South Korean government. The cost of setting up of the stock market could vary between $10 to $15 million, and the development of this sector could create hundreds of jobs.

Cambodia National Assembly debates draft law of stock exchange

PHNOM PENH, Sept. 11 (Xinhua) -- The Cambodian National Assembly here on Tuesday debated the draft law of stock exchange which has 10 chapters and 58 articles, in preparation for inauguration of stock exchange market in 2009.

"This law is a tool for collecting capital from the public to contribute to develop the economy, and Cambodia has to implement this law as member of the World Trade Organization," said Cheam Yeap, chairman for the Committee of Banking and Finance.

The law will be passed on Wednesday and "the Cambodian people who have habits of keeping their money in pillows and under mats can release their money to invest in this stock exchange market," he said.

Cambodia will set up corporate bonds, bond transaction and bond issuers for general people to buy and sell and the private sectors also can do it, he said.

Meanwhile, Keat Chhon, minister of Economy and Finance, said that for the first step from 2009 to 2015, the Cambodian government is the legal individual who will guarantee the public confidence in the security market.

This law allows the government to establish the Securities and Exchange Commission of Cambodia (SECC), which is responsible for managing and checking the bond market, allowing for securities depository, licensing security firms and representative, resolving conflicts of investors' benefit, practicing bond market, developing stock exchange and processing securities market, he said.

SECC has nine members and the president of SECC is the minister of Economy and Finance.

"Now we have over 400 companies who have abilities to engage in stock exchange in Cambodia," he said, adding that "we have two more years to create confidence for national and international investors to invest in stock exchange market in Cambodia."

The government will first release 10-15 million U.S. dollars for infrastructure construction of stock exchange market and the South Korean government contributed about 1.8 million U.S. dollars for human resources training of the market, he added.

According to the draft bill, anyone who issues and sells bonds publicly without recognition of SECC will be put into jail for one to five years and fined 500 to 2,500 U.S. dollars.