Securities and Exchange Regulator of Cambodia (SERC) and ACLEDA Bank sign MoU on usage of electronic payment services on December 7. PHOTO SUPPLIED
The Securities and Exchange Regulator of Cambodia (SERC) has authorised ACLEDA Bank Plc to collect application fees via e-payment methods for investor identification numbers (IIN) with the Cambodia Securities Exchange (CSX), in a bid to increase the convenience of investing in the local bourse.
An agreement was signed to this end by SERC director-general Sou Socheat and ACLEDA senior executive vice-president Mar Amara on December 7. The SERC had previously inked a similar deal with Advanced Bank of Asia Ltd, according to the securities chief.
Socheat said that even more than a decade on after the CSX opened, the SERC remains committed to create and expand partnerships aimed at improving development of the Cambodian securities market, in line with international trends.
These improvements involve, among other things, fine-tuning the regulatory framework, researching securities products, promoting trading and new listings on the CSX, and raising awareness among potential investors, he said.
“The securities market is evolving positively, with our market having adequate support or pillar system [investors, initial public offering (IPO) companies, marketing intermediaries and market infrastructure] and full support and participation from all stakeholders in this area.
“I hope … this agreement will make it easier and faster for investors to pay fees as well as expedite the application for an investor identification number online,” Socheat said in a statement.
ACLEDA’s Amara said her bank had struck the deal with SERC to boost confidence in the CSX, taking into account the significant increases in public interest in securities seen over the years.
With the agreement signed, investors wishing to start investing in local securities can pay their IIN application fees through ACLEDA Mobile and XPay, as well as with credit cards from VISA, MasterCard, Diners Club, JCB and UnionPay, she said.
“ACLEDA Bank has always been committed to serving its customers, by diversifying its banking and financial products and services, as well as developing e-banking and digital financial technology systems to meet the needs of its customers and contribute to the development of the Cambodian securities market to be more active and livelier,” Amara said.
The SERC reported that, as of September 30, it had issued a total of 33,183 IIN, of which 99.52 per cent were for individual investors and 86.23 per cent for Cambodian investors.
The regulator said that the CSX’s total free-float market cap closed September at $1.75 billion – or 7.192 trillion riel according to the bourse – while the average stock trading volume in the third quarter of 2022 was 266,289 shares. CSX puts the full market cap for September 30 at 16.220 trillion riel.
