The Securities Commission of the Federation of BiH adopted Rulebook on Qualified Shareholdings in Securities Market Participants. The document regulates the application and the supporting documents that need to be submitted to the Securities Commission in order for it to approve the increase of the participation in a professional intermediary company (a legal entity that has a licence to provide securities services according to the Law on the Securities Market) equal to and above 10%, 20%, 30% and 50% (qualified shareholding), as well as in a stock exchange. The supporting documents refer to the identification documents of the individual or legal persons that intend to reach such qualified shareholding. The Securities Commission can also request additional documentation, which can be related to regulations on anti money laundering and preventing the financing of terrorism as well as to other relevant documentation.
The application for reaching the respective threshold can be approved or rejected by the Securities Commission based on the submitted documentation or if the Securities Commission estimates that such acquisition will have a negative impact on the professional intermediary company, the other market participants, the securities market itself, the investors or the public.
The trading with securities issued by stock exchanges and professional intermediaries is allowed only through special auctions, which are organised in accordance with the Stock Exchange Rulebook and the Rulebook on Qualified Shareholdings in Securities Market Participants.
Owners that do not comply with the above noted provisions will have restricted voting rights on the acquired shares and the Securities Commission will instruct the sale of such securities.
Impact on investors: Investors, who intend to acquire participation in a professional intermediary company, thus reaching the thresholds prescribed by the Rulebook, will need to submit a request for approval to the Securities Commission.