Uzbekistan Updates Rules for Regulatory Sandbox

Tashkent, Uzbekistan (UzDaily.com) — The Ministry of Justice has registered an order by the Director of the National Agency for Perspective Projects introducing amendments to the regulation governing the “regulatory sandbox” regime in the capital market.

The changes implement provisions of the presidential decree of 18 December 2025 (No. UP-254) “On additional measures to improve the investment climate in the capital market” and are aimed at strengthening the sandbox’s capacity and expanding opportunities for participants.

Among the key updates is the expansion of eligible participants: resident legal entities of Uzbekistan are now allowed to take part in the regulatory sandbox. Participation procedures for infrastructure institutions have also been simplified, enabling the Central Securities Depository and the Tashkent Republican Stock Exchange to conduct operations without additional registration.

The range of permitted instruments and transactions has been broadened. The sandbox now allows the issuance of depositary receipts on securities of domestic issuers, including corporate bonds denominated in foreign currency.

The framework also provides for custodial and nominee holding services, as well as free-of-payment (FOP) transfers of securities without a change in beneficial ownership, which are exempt from taxation.

Nominee holders are now permitted to exercise shareholder rights without powers of attorney. In addition, foreign securities may be admitted to the domestic market, with requirements established for trading venues and investment intermediary platforms.

To increase investor confidence, the time limit on the duration of participation in the sandbox has been removed.

The adopted amendments are expected to create a more flexible and resilient environment for testing new financial instruments, encourage participation by domestic market players, and support the integration of Uzbekistan’s capital market into the global financial system.