The President of Ukraine Volodymyr Zelensky signed draft law No. 5865, which provides for the reform of the capital market and strengthens the powers of its regulator, the National Commission for Securities and the Stock Market (NCSSM).
This is stated on the website of the Verkhovna Rada (the Ukrainian Parliament).
The purpose of the draft law is to build an effective system of regulation, supervision and prevention of abuse in the Ukrainian capital markets and organized commodity markets.
The draft law proposes:
- to increase the institutional capacity of the National Commission for Securities and the Stock Market (NCSSM) as a national regulator of capital markets and organized commodity markets, to expand its powers, to enshrine in legislation guarantees of the independence of NCSSM;
- to improve legislative norms regarding the international cooperation of the NCSSM;
- to build an effective system of supervision on the capital markets and organized commodity markets according to the principles of IOSCO;
- implement mechanisms to prevent manipulation, insider trading, illegal use of insider information, etc.;
- determine responsibility for violations of legislation on capital markets.
According to the chairman of the commission Ruslan Magomedov, joining the IOSCO principles will provide opportunities to exchange information and join the "civilized world, where we will be perceived as a subject, not as an object." He believes that the adoption of the law can make the commission "flexible and truly modern."
Earlier, the MP Yaroslav Zheleznyak noted that whether Ukraine will receive $1.4 billion in funding from the World Bank depends on this document.
What is NCSSM?
The National Securities and Stock Market Commission is subordinate to the President and accountable to the Verkhovna Rada. It consists of a chairman and six members who are appointed and dismissed by presidential decree.
NCSSM develops and approves normative acts and acts of legislation that are required to be implemented by central and local bodies of executive power, self-government, and securities market participants. The purpose of the commissionʼs activity is to create conditions for the efficient functioning of the securities market, to provide monetary capital for the needs of the countryʼs economy, to protect the rights of investors, etc.