Кыргызская фондовая биржа

Decree "On measures for further development of the stock market and stock exchange activity

President of the Kyrgyz Republic Sadyr Japarov signed a decree № 376 "On measures for the further development of the stock market and stock exchange activities".

In order to accelerate the development of the stock market of the Kyrgyz Republic and the process of its digitalization, improve access to financial instruments for citizens and entrepreneurs, create an enabling environment for the inflow of investment in the economy, as well as within the framework of the National Development Program of the Kyrgyz Republic until 2026, guided by Articles 66, 71 of the Constitution of the Kyrgyz Republic, decides 

1. To consider that one of the priorities in the development of the stock market of the Kyrgyz Republic is to strengthen the institutional infrastructure of the stock market, the introduction of digital technologies, expanding the range of financial instruments, creating favorable conditions for investment, integration into the international financial market and increasing the level of savings of the population.

2. To define the Kyrgyz Stock Exchange Closed Joint Stock Company (hereinafter referred to as CJSC) and the Central Depository CJSC as the system forming national institutions implementing socially important economic projects, including those with the government participation, to launch precious metals sector, commodity and raw materials sector and government securities sector in order to increase their competitiveness in the international financial market.

3. The Cabinet of Ministers of the Kyrgyz Republic in the prescribed manner:

- To update the Strategy for development of the non-banking financial market of the Kyrgyz Republic for 2021-2025, approved by the Government of the Kyrgyz Republic Resolution No. 190 of May 4, 2021, in terms of development of the stock market, taking into account the identified priority areas and best international practices;
- Complete the process of state entry into the capital of the Kyrgyz Stock Exchange CJSC and the Central Depository CJSC;
- Develop a draft law to amend the Law of the Kyrgyz Republic "On Securities Market" in regards to the functioning of a modern and international standard oriented Central Securities Depository in the financial market of the Kyrgyz Republic as well as requirements to the procedure for oversight and control of its activities; 
- Create a favorable legal and regulatory framework to simplify the procedure for business entities to enter the stock market; 
- to develop a project of individual investment accounts aimed at stimulating the process of investing the population in the development of the country's economy in order to increase the level of savings;
- to consider the possibility of providing brokerage services through the network of Open Joint Stock Company "Kyrgyz Pochtasy" in order to increase investors' access to financial instruments from the regions. 

4. The Cabinet of Ministers of the Kyrgyz Republic should work out the issues aimed at:

- transfer of trading in government securities to the platform of the CJSC "Kyrgyz Stock Exchange" and expanding the range of bidders and investors;
- Conducting an initial public offering (IPO) on the floor of the CJSC "Kyrgyz Stock Exchange" and the purchase of shares (at least five percent of shares) of national companies with state participation of the population, institutional and foreign investors through the stock exchange;
- issuance and placement of financial instruments in the stock market to finance national projects and development projects;
- expansion of the range of financial instruments traded on the stock market;
- exchange of public external debt for the implementation of climate and biodiversity conservation projects, also issuance of securities in the field of environmental protection, ecology, green economy or development programs in the social sphere;
- Creation of conditions for the simplified entry of promising startup projects to the stock market;
- universalization of the trading floor of the CJSC "Kyrgyz Stock Exchange" through the expansion of the range of traded financial instruments and coverage of corporate and government securities, commodities and raw materials, precious metals;
- assisting in attracting international consultants and technical assistance to develop and strengthen the infrastructure of the "Kyrgyz Stock Exchange" CJSC and the "Central Depository" CJSC;
- improving corporate governance in joint-stock companies with state participation to improve the attractiveness and maintain the liquidity of corporate securities and shares; 
- introduction of digital technologies aimed at online trading in financial instruments, including investment marketplaces;
- Integration of the country's stock market with international capital markets.

5. The Cabinet of Ministers of the Kyrgyz Republic jointly with the National Bank of the Kyrgyz Republic shall constantly work on improving financial literacy, including the stimulation of savings and increasing the attractiveness of national financial instruments.

6. Recommend that the Russian-Kyrgyz Development Fund, the Uzbek-Kyrgyz Development Fund, the Hungarian-Kyrgyz Development Fund and other development institutions actively participate as institutional investors in the stock market.