The securities Commission wants to increase the transparency of stock trading and the awareness of investors
NSSMC approved a new version of the two legal acts governing trading in securities on stock exchanges. Innovations caused by recent legislation, in particular the adoption of the Law on simplification of doing business and attracting investment by issuers of securities and the Law on accounting and financial reporting in Ukraine. About it reports a press-service of the Commission.
In particular, will be introduced the following innovations:
- stock exchange shall be obliged in writing to inform the issuers to make their securities in the exchange list if the proposer of the amendment is not the Issuer;
- issuers, whose securities are included in an exchange list, are obliged to inform the stock exchange on the date of publication on its website schedule disclosure of their information;
- stock exchanges are required to verify the publication by the issuers whose securities are admitted to trading on such stock exchange calendar of the disclosure schedule;
- stock exchange are required to analyze the data posted by issuers in the public information database of the SSMNC, in particular on the following requirements: the preparation of financial statements in accordance with IFRS, creation of accounting service headed by chief accountant and consisting of not less than two persons (except for collective investment institutions and pension funds);
- stock exchange shall exclude from the exchange list of the Issuer not to disclose on its website the calendar of the disclosure schedule by January 31 of each year;
- in the bond list of the stock exchange cannot be turned on and remain there the Issuer: private joint stock company, the number of shareholders which does not exceed 100 people and the Charter which provide for the preemptive right of its shareholders to purchase shares proposed by the owner for sale to a third party.
From now on, will be introduced only one level of listing, and requirements on the entry and stay of securities in the listing will meet the requirements that previously applied to the second level.
All issuers whose securities are included in bond registry as of 1 January 2019, must have a valid prospectus for securities, that is, meet the new legal requirements and is registered with the securities Commission.
Innovations of the Regulations on the procedure for registration of changes in stock exchange rules concern the introduction into circulation on stock exchange derivatives.
With the aim of increasing transparency of trading these financial instruments, the Commission expands the substantiation of the exchange should apply in this case. According to the updated version of the document, the justification must contain:
- description of the underlying asset, the reliability, quality and availability of data sources on the basis of which the strike price of the contract;
- the analysis of the dynamics of the underlying asset price over the previous 1 – 3 years (if available);
- assessment of compliance of the financial instrument to the needs of market and customers;
- information about software and hardware that will be used in the conclusion and execution of derivatives, or information on planned activities and timing of the development or acquisition of software and technical means.