Four Companies Granted CIS Licenses

Four licenses of collective investment scheme, newly-created capital tool, have been issued to registered investment companies, according capital market regulator.

Four companies, two from overseas, have been granted licenses to mobilise public funding to support their investment in Cambodia, said H.E. Sou Socheat, Director General of the Securities and Exchange Commission of Cambodia.

A collective investment scheme, or CIS, consists of a funding pool generally collected from individuals and managed by a professional investment team and put into different businesses.

The investment team acts on behalf of the individual investors, who may have no investment skills or lack the time to manage their own investments.

CIS is the third tool in the capital market along with share and bond, and individual investing in the CIS is called fund unit holder, similarly to share holder.

The fund can be used for investment in real estate sector or other sector and it can be used in the capital market.

H.E. Sou Socheat said that the establishment of CIS is to provide options to investors who do not have investment skill, and it also helps strengthening the capital market.

The Securities and Exchange Commission of Cambodia have so far listed five companies in stock and two companies in bond.

Source: Agency Kampuchea Press