Summary: Amendments to the Law on Securities Market in Republic of Srpska will come into force on 15 July 2021
Please be informed that Amendments to Law on Securities Market, published in the Official Gazette of Republic of Srpska no 63/21, will become effective as of 15 July 2021.
The most significant changes are related to form, content and availability of the prospectus, simplification of issuance of debt securities and money market instruments, as well as to expanding the range of services of broker-dealer companies.
Amendments related to prospectus in the issuance of securities
- Issuers will not be any more allowed to publish the preliminary prospectus
- Simplified prospectus will become the mandatory content of the prospectus, except for issuance of debt securities with nominal value which is equal or higher than BAM 100,000
- Issuers may publish the voluntary prospectus when the publishing of the prospectus is not mandatory
- Deadline for publishing the prospectus and the public call for subscription of securities will be shortened from 15 to 7 days prior to start of the subscription period
- Prospectuses will be published on websites of the issuers, website of stock exchange and websites of issuer´s agents. The Securities Commission will also publish the list of prospectuses approved in the last 10 years on their website.
- Deadlines for investors to cancel the subscription and purchase of shares due to changes in prospectus published during the offering period will be now mandatory element of the the prospectus and may not be shorter than two days upon receipt of the amended prospectus. Previously, the deadline to cancel the subscription and purchase was set to 15 days upon receipt of the prospectus. Value of the issuance, offering period and shareholder´s rights, including methods to exercise these rights will not be possible to amend during the offering period.
Changes related to simplification of procedures of issuance of debt securities and money market instruments, among others include:
- Issuers of securities will be exempt from the obligation to publish the prospectus if the total nominal value of issued securities is lower than BAM 1,000,000
- Issuers of money market instruments are exempt from the obligation to publish the prospectus
- Issuers of debt securities will be exempt from the obligation to publish the prospectus if the securities are listed on the market segment reserved for the qualified investors.
- Issuers exempt from obligation to publish the prospectus will be obliged to provide all investors with relevant information on the issuance.
Range of services of broker-dealer companies will be expanded to additional services. Accordingly, broker-dealer companies will be allowed to provide ancillary services related to their core business, such as advisory, financial analysis, business planning etc. Broker-dealer companies which hold custody license will be allowed to open and maintain omnibus securities accounts.
Impact on investors: Amendments to the Law on Securities Market in Republic of Srpska will introduce the changes related to prospectus and simplification of issuance procedures for debt securities and money market instruments, as well as to expanding the range of services of broker-dealer companies.