The Parliament of Kyrgyzstan adopted the bill on amendments regulating the securities market in the third reading. The document is aimed at developing the stock market, protecting the rights of investors, digitalizing the industry and attracting investment to the country’s economy.
According to the data in the background statement to the bill, the following changes are proposed:
- Establishment of a full-fledged National Depository with modern technical and legal capabilities;
- Implementation of electronic filing of documents for issuers, which will facilitate companies’ access to the stock market;
- Development of the institution of investment consultants to improve literacy and protect investors;
- Improvement of corporate governance standards, including the introduction of the institution of independent directors;
- Elimination of outdated terms and legal gaps, including in the regulation of Islamic securities;
- Increasing the protection of investor rights by prohibiting payment for securities with assets associated with sanctioned persons or high risks.
According to the initiators of the bill, i.e. the Cabinet of Ministers, these measures will help increase investment activity of the population, improve the financial stability of the market and reduce systemic risks.
The background statement says that to date the capitalization of the stock market of Kyrgyzstan is less than 5 percent of GDP, which is significantly lower than in neighboring countries. The adoption of the law should be an important step towards creating a developed and transparent investment environment.
