| Azlan Othman |
THE Autoriti Monetari Brunei Darussalam (AMBD) has prepared the initial draft of rules for the Brunei Stock Exchange, completing the system functionality and technical requirements of the bourse.
Relevant training programmes to provide awareness on the stock exchange have also been readied, the financial regulator said in its policy statement for the second half of 2016 revealed on December 28.
“AMBD is a member of the Steering Committee, the Secretariat and Working Group for the establishment of the Brunei Darussalam Stock Exchange. The Working Group consists of three sub Working Groups, namely the Working Group for Rules and Regulations (WGRR), the Working Group for Operations and Infrastructure (WGOI), and the Working Group for Promotion and Education (WGPE),” the statutory body which acts as the central bank of the country said.
“The Working Group for Rules and Regulations has prepared the first draft of the stock exchange rules, including the listing rules particularly relating to publicly traded listed corporations, which are required to be in place and socialised to the relevant stakeholders well before the launch of the exchange,” according to the policy statement.
The Working Group for Operations and Infrastructure has also completed tender requirements for the new stock exchange system including the system functionality and technical requirements.
Meanwhile, the Working Group for Promotion and Education has prepared relevant training programmes to provide awareness on the stock exchange.
In August this year, AMBD had announced that the exchange will be ready once all infrastructure, including the relevant rules and systems as well as the resources, are in place.
“As with other large-scale national projects, the stock exchange project needs not only proper planning but also a good execution in order to produce long-lasting positive outcome and to ensure its viability and sustainability,” it said.
The aspiration is for the characteristic features of the Brunei Stock Exchange to be unique to Brunei Darussalam.
Fundamentally, the vision of the exchange is to be simple in terms of design and yet have comprehensive rules based on international standards and best practices, to cater for various investment products.
All companies will have the opportunity to be listed, provided that they are able to meet the listing rules of the exchange.
In addition, a core objective of the exchange is to provide for the needs of Muslim investors. Sukuk, being one of the common types of Syariah-compliant securities, may be among those listed on the exchange.
The launch of the securities exchange in Brunei Darussalam is expected to catalyse economic growth and business expansion through the enabling of alternative funding routes to Bruneian businesses.
Moreover, a securities market will also allow Brunei Darussalam to take part in Asean exchanges.
Not only will the development of a national securities market in Brunei Darussalam facilitate regional integration, expand the country’s capital markets platform and trigger greater foreign investment opportunities, the stock exchange is also aligned to the national strategy to diversify the economy away from oil and gas industry.
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