Conference “Securities Market Development up to 2020 – the challenges, ideas and solutions”
From 17 to 19 September in the city of Cholpon-Ata held a Conference consisting of the Training Workshop on improved market and registration of transactions in accordance with the new requirements and the Round Table: “The development of the securities market until 2020 – challenges, ideas and solutions.” The conference was attended by professional participants of the securities market (brokers, dealers, asset managers, independent registrars, depositories, etc..), Representatives of banks, insurance companies, investment and pension funds, experts of the Kyrgyz Stock Exchange.
Just participated in the conference and delivered: Mukanbetov S.T- Chairman of State financial supervision KR, PIRMATOV R .T.- Head of the State Accumulation Pension Fund of the Social Fund of the Kyrgyz Republic.
The conference participants adopted a resolution.
Conference participants in the securities market on the “Development of the securities market by 2020 years- challenges, ideas and solutions”
Participants of the conference discussed the issues on the agenda of the conference, noted that there are many urgent issues to be resolved for further sustainable and dynamic development of the securities market of the Kyrgyz Republic.
Resolution of the Government of the Kyrgyz Republic from July 2, 2015 “On amendments and additions to the Decree of the Government of the Kyrgyz Republic” On approval of the rules for securities transactions in the Kyrgyz Republic “from October 17, 2011 and №647 from July 9th, 2015, №476« About Parallel placement and circulation of government treasury bonds of the Kyrgyz Republic with a 5-year treatment “create new favorable conditions for the development of the securities market.
The conference participants discussed the issues of practical implementation of the above resolutions of the Government of the Kyrgyz Republic and made concrete proposals for the implementation of tasks.
Serious problems exist in terms of investment in the real economy of pension assets of the citizens of Kyrgyzstan. These investment vehicles are currently being used for other purposes, they are used to service the public debt and deposits of commercial banks, whereas the funds from 2013 had to be sent through the stock market to the real sector of the economy of Kyrgyzstan.
At the conference were made concrete proposals for the development strategy of the Kyrgyz Stock Exchange to increase its capitalization, conversion of CJSC “KSE” into a public joint stock company.
The conference participants made specific suggestions to improve the accounting system of corporate securities of the Kyrgyz Republic, the disclosure of information on the Kyrgyz Stock Exchange, the introduction of electronic document exchange, the creation of a common market of a professional association.
The conference discussed issues of development of the securities market in Kyrgyzstan, which exist due to the artificial division of it on the market for government securities and corporate securities market. In world practice, there is practically no such analogs. In the CIS, as this separation does not exist. The division of the stock market for government securities, and the SEC has occurred only here in Kyrgyzstan. Handling of government securities takes place on the trading floor of the National Bank, the appeal of corporate securities on the trading floor of the Kyrgyz Stock Exchange. This artificial division of securities seriously hinders its development and hinders the integration of our market into international capital markets.
Currently, the National Bank does not perform its inherent function as an organizer of trade in securities. The laws of the Kyrgyz Republic regulating the activities of the National Bank, the National Bank is not designed as an organizer of trade in securities. Who spent large state funds for the establishment and operation of expensive trading systems of the National Bank of the Kyrgyz Republic. Such costs in a market economy must be borne by market participants, as is done in the Kyrgyz Stock Exchange.
After discussing the questions made by the participants of the conference decided:
1. To take all measures to implement the Resolution of the Government of the Kyrgyz Republic on the transition to market transactions with corporate securities on the trading plorschadke Kyrgyz Stock Exchange.
2. Submit to the Supervisory Board of the Social Fund of the Kyrgyz Republic, the Government of the Kyrgyz Republic and the Jogorku Kenesh recommendations start with 01.01.2016, the investment of pension funds GNPF in the real economy through the stock market, according to the requirements of the Law “On investment funds for the funded part of pensions for state social insurance in the Kyrgyz Republic. ” Asking Gosfinnadzor to hold a meeting of the expert community with the Government of the Kyrgyz Republic on these issues.
3. Increase in financial instruments traded on the KSE is the key to activate the country’s stock market. It is necessary to work out the issues of trade on the stock exchange mortgage-backed securities, certificates of gold and housing certificates, as well as currency.
4. Financial disclosure is the key to attracting investment into the economy. Kyrgyz Stock Exchange must be actively and effectively use the mechanisms provided for in the disclosure of the Law “On the Securities Market” and the recommendations made by the participants of a conference on information disclosure.
5. Move to the discussion of the shareholders of JSC “KSE” the question of the transformation of the Exchange into a public joint stock company in order to increase investor confidence and increase the capitalization of the KSE.
6. Write the Service regulation and supervision of financial market under the Government proposals to improve the accounting system of the securities market.
7. Kyrgyz Stock Exchange and the Central Depository must prepare and submit proposals to the Government of the Kyrgyz Republic on the unification of corporate securities and government securities market based on the trading floor of the Kyrgyz Stock Exchange.
Resolution adopted by 19.09. 2015. Cholpon-Ata.