Stock market development issues discussed
07/10/2019 19:40
Stock market development issues discussed
07/10/2019 19:40
Tashkent, Uzbekistan (UzDaily.com) -- On 7 October, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on the development of the country’s stock market.
The securities market is an important means of consolidating free cash in the economy and mobilizing it for investment processes. The first stage of the reforms carried out in this direction was the creation of the Capital Market Development Agency at the beginning of this year.
The issuance of government bonds was resumed. However, the mechanism for issuing securities and their sale on the stock market is used inefficiently. The total amount of shares in the stock market is 25 trillion soums, which does not reach 6 percent of the gross domestic product. For example, this figure is 188 percent in Singapore, 112 percent in Malaysia, 34 percent in Russia.
This year, government bonds were sold only to commercial banks through the currency exchange. The number of professional stock market participants does not reach 100.
In this regard, it is planned to develop a stock market development strategy for 2020-2025. It is planned to bring the ratio of freely traded securities to GDP to 10-15 percent by the end of 2025.
The meeting discussed upcoming measures to achieve this goal.
It was noted that at present, this sphere is regulated by about 100 regulatory legal acts, and many restrictions have been established. So, in developed countries, banks are active participants in the stock market, and in our country, banks are prohibited from acquiring shares of other entities in the primary market.
The head of state pointed out the need to review legislative acts, abolish unnecessary restrictions and simplify work in the stock market.
Currently, the state owns 85 percent of the shares of 605 joint-stock companies. Of these, only 5 percent are traded on the stock market - shares of 105 companies.
At the meeting, instructions were given to increase the types of securities on the capital market based on international practice.
Measures to increase demand for securities, attracting foreign exchanges, brokers and banks to the domestic stock market were considered. The issues of orientation to the stock market of a certain part of the assets of insurance companies, permission to banks to purchase highly liquid securities in the primary market were discussed.
The necessity of strengthening the protection of the rights of investors and minority shareholders, improving the procedure for payment and collection of dividends is noted. It was also instructed to improve corporate governance, switch to international standards of financial reporting and international audit.
The development of the sphere also depends on the qualifications of specialists and the financial literacy of the population. Today, only 300 specialists with the corresponding certificate of qualification operate in the country. In developed countries, thousands of people work in this area.
In this regard, the Agency for the Development of the Capital Market has been given the task of coordinating the activities of the corresponding department of the Tashkent Financial Institute and providing continuing education and training of students together with leading foreign universities.
Special attention was paid to the expansion of informational work on transformations in the stock market, and the improvement of the financial literacy of the population.
The information of the responsible persons on the issues discussed at the meeting was heard and priority tasks for the future were identified.
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