Financial market development policy
Stock market
The main goal of the state policy on stock market development is to create conditions for attracting investment resources, directing them to the restoration and ensuring further growth of production, creating an effective system for protecting the rights and interests of investors, building an effective system of organized trading and the National Depository System.In 2001-2003, the development of the stock market was accompanied by the improvement of state regulation of the stock market, the development of an effective organized trading system, and the strengthening of control over ensuring the rights of securities holders; this was reflected in legislative and regulatory legal acts.
Particular attention in the development of the securities market is given to investors such as collective investment institutions.
Today, there is a trend toward a decrease in the number of holders of registered securities, while at the same time the process of capital concentration has begun to revive. This is connected with the completion of mass privatization of enterprises and the gradual consolidation of blocks of shares of privatized enterprises and the formation of real owners of these blocks.
An effective system for protecting investors' rights is one of the most important factors in stock market development and an important link in the work on creating a favorable investment climate, which can be ensured only by a proper corporate governance system that allows investors to be confident that their investments in a joint-stock company are reasonably used for its further development and for increasing the value of investors' share in the share capital.
The main problems of the stock market remain:
- insufficient transparency and liquidity of the market;
- high level of risks in securities transactions;
- underdeveloped stock market infrastructure;
- underdeveloped mechanism for protecting the rights and legitimate interests of investors.
The main directions of stock market development in 2004:
- development of collective investment institutions;
- creation of the Volyn "Stock House";
- creation of a monitoring system;
- creation of a unified database;
- creation of the Volyn branch of the Agency for Stock Market Infrastructure Development of Ukraine;
- to ensure priority development of the book-entry form of securities issuance, take measures to create securities custodian structures in the city;
- ensure constant control over compliance by securities market participants with the regulatory acts governing the stock market;
- develop and ensure implementation of a regional program for technical re-equipment of the existing material and technical base of the territorial administration of the State Commission for Securities and Stock Market;
- raising the level of knowledge of civil servants of local authorities on the functioning of the stock market and corporate governance, through training, organization of seminars, round tables and other forms;
- ensure the production of booklets, brochures, methodological and other reference-statistical and promotional materials to inform the public and stock market participants for its functioning.
Ensuring the impact of the stock market on economic growth through increasing its influence requires the implementation of the following measures in 2004:
- improve the system for disclosure of information on securities and stock market participants;
- ensure the implementation of the Law of Ukraine "On Collective Investment Institutions (Unit and Corporate Investment Funds)";
- ensure transparency of the activities of collective investment institutions;
- take measures to prevent market manipulation, unfair trading practices and violations of professional ethics in the stock market;
- improve the procedure for entry into/exit from the stock market;
- create conditions for working with securities of pension funds, insurance companies, investment and venture funds/companies.