08 October 2019

Uzbekistan’s securities market anticipates drastic changes

On October 7, 2019, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on the development of the country’s securities market. It is planned to develop a market development strategy for 2020-2025 and to bring the ratio of freely traded securities to GDP to 10-15 percent by the end of 2025. In the field of the securities market, regulatory legal acts will be revised, restrictions and obstacles should be abolished.

Currently, the state owns 85 percent of the shares of 605 joint-stock companies. Of these, only 5 percent are traded on the securities market – there are shares of 105 companies.

At the meeting, instructions were given to increase the types of securities on the market based on international practice.

Measures to drive up demand for securities, attracting foreign exchanges, brokers and banks to the domestic securities market are considered. The involving of insurance companies into the securities market, as well as permission to banks to purchase highly liquid securities in the primary market were also discussed.

The protection of the rights of investors and minority shareholders will be strengthened, and the procedure for payment and collection of dividends will also be improved.

The priority goal of the program is the transition to modern corporate governance methods and the widespread adoption of international financial reporting standards.