Kyrgyzstan Parliament Approves Securities Market Regulation Bill
Kyrgyz Parliament Approves New Securities Market Regulations
Bishkek, 17:25, 30 April 2025 – 24.kg news agency – By Nargiza Tokoeva
The Parliament of Kyrgyzstan has successfully passed a bill aimed at overhauling and regulating the securities market in its third reading. This landmark legislation is designed to bolster the development of the stock market, safeguard investor rights, enhance digital capabilities within the industry, and attract more investments into the nation’s economy.
Key amendments outlined in the bill include:
Establishment of a National Depository: The bill proposes the creation of a comprehensive National Depository equipped with modern technical and legal capabilities to streamline securities management.
Electronic Filing for Issuers: Companies will be able to file documents electronically, simplifying their access to the stock market and making the process more efficient.
Investment Consultants Development: The legislation promotes the establishment of investment consultancy services to enhance financial literacy and provide better protection for investors.
Corporate Governance Improvements: Higher standards for corporate governance are set to be introduced, which includes the implementation of independent directors to ensure accountability.
Regulatory Updates: The bill seeks to eliminate outdated terms and close legal gaps, particularly concerning the regulation of Islamic securities.
- Investor Protection Enhancements: To safeguard investors, the bill prohibits payments for securities using assets linked to sanctioned individuals or high-risk entities.
The Cabinet of Ministers, who initiated the bill, argues that these measures aim to increase investment activity among the populace, strengthen the financial stability of the market, and mitigate systemic risks.
Currently, the capitalization of Kyrgyzstan’s stock market remains below 5 percent of its GDP, a figure that is significantly lower than that of its neighboring countries. The adoption of this bill is considered a crucial step toward fostering a more developed and transparent investment environment in Kyrgyzstan.
