President Shavkat Mirziyoyev heard to a presentation on steps to further develop Uzbekistan's capital market Monday, the presidential press service said.
The market value of securities traded in the country stands at 275 trillion soums, while the volume of securities in free float is at 4 trillion soums. There are 717 issuers and 77 professional participants operating in the market. However, market’s capitalization is valued at only 20% of GDP—significantly lower than global ratios, indicating significant potential for further growth.
In this regard, steps to attract at least $1 billion in investment to the domestic capital market were discussed.
Key initiatives include allowing dual listing, which will allow companies to simultaneously list securities on local and international exchanges in accordance with international standards. New financial instruments are also planned, including foreign currency bonds, global depository receipts, foreign securities, and exchange-traded funds.
The presentation also focused on expanding the regulatory sandbox, proposing to extend its terms not only to non-residents but also to residents, and to establish an unlimited term for foreign investors.
Furthermore, it has proposed allowing trading in shares, bonds, and other securities of foreign companies (Google, Meta, Nvidia, and others) on a special stock exchange platform, as this would reduce the scale of unofficial trading in foreign financial instruments.
Steps to increase the participation of domestic investors were also discussed at the meeting. Specifically, the Tashkent Stock Exchange could allow local companies and banks to issue bonds in foreign currency (currently only in soums), which will allow them to raise foreign currency without entering foreign markets.
Furthermore, it has proposed to expand the bond market by allowing the issuance of securities without collateral and in excess of the issuer's equity. This means that a company will be able to raise funds from investors without providing collateral or other assets as security.
A separate section focused on improving the system of capital market oversight and regulation. Plans were presented to align legislation with the standards of the International Organization of Securities Commissions (IOSCO), extend the powers of the regulator (NAPP), and gradually increase the authorized capital requirements for professional market participants.
The NAPP, in conjunction with the Ministry of Economy and Finance, has been tasked with intensifying efforts to educate the public and entrepreneurs about capital market opportunities.
In an interview with Uzbekistan 24 TV channel, First Deputy Director of the National Agency for Prospective Projects (NAPP) Vyacheslav Pak announced a number of amendments introduced aimed at increasing market transparency, ensuring information disclosure by issuers, and strengthening penalties for such violations.
