Amendments to the Law on Capital Market

UniCredit Bank Serbia JSC
Summary: 
Changes to the Law on Capital Market were adopted by the Parliament
Thu, 05/01/2017

 

The Serbian Parliament approved amendments to the Law on Capital Market, which are aimed at:

  • Fulfilling the obligations envisaged by the Stabilisation and Association Agreement
  • Improving the regulation in the area of capital market violations
  • Increasing investor confidence
  • Ensuring the presence of effective mechanisms against market abuse
  • Improving capital market efficiency by ensuring greater transparency in regulatory provisions and legal certainty

The Market Abuse Directive was implemented by these amendments as an international obligation of Serbia.

New financial instruments - commodity derivatives, loan derivatives - were also introduced

One of the amendments is also that the Securities Commission is allowed to require from a court to issue an order that all recorded phone calls and exchanged data in possession of investment companies, credit institutions and all other entities supervised by the Securities Commission be provided to the Securities Commission, in case there is reasonable doubt of violation of provisions of the law.

The amendments are in effect as of 5 January 2017.

 

Impacts on investors: The amendments to the Law on Capital Market align it with the EU legislation and also aim at improving the efficiency of the capital market and at setting up a legal framework against violations in the capital market.