President signs law “On investment and mutual funds”

Legislative Chamber of Oliy Majlis of Uzbekistan passed the law on 29 June 2015 and the Senate adopted on 6 August 2015. The document will come into force from 1 July 2017.

The law aims to create legal mechanisms for formation and organization of investment and mutual funds, stimulate the formation of a system of collective investment, and create conditions for the population, business organizations in mobilizing, investing temporarily available funds to finance various economic and investment projects.

The law said that investment funds are legal entities – joint stock companies, which issue shares to attract funds of investors and direct them into investment assets.

Investment funds carry out their activities in line with the licenses, issued by the authorized body on regulation of securities market.

Two types of investment funds can be created: with mandatory purchase of issued shares and without mandatory purchase of issued shares.

Mutual funds are accumulation of financial resources of two or more persons – investors, transferred to the fund for management to carry out investment activities.

The law regulates issues of creation, management and liquidation of investment and mutual funds, as well as other issues.

The document said that they should disclose information via their official websites, website of the authorized state body on regulation of securities market, as well as exchange in line with the legislation of Uzbekistan.