By Elena Fehrbach
Jan. 20 – 2013 was a very busy year for the Mongolian Stock Exchange (MSE) and resulted in a legal and structural reform being introduced to the investment community on 1 January 2014. The new Securities Market Law came into force on that day, marking a beginning of the new securities investment era in Mongolia. The adoption of the new Securities Law came straight after adoption of the revised Investment Law on 1 November 2013 that has replaced the controversial Strategic Foreign Investment Law. New regulations are targeting the attraction of the foreign investment into Mongolia by providing internationally-accepted best practices and platforms for investments.
Securities Markets Law
As the newest regulation, Securities Markets Law (SML) immediately became the major point of discussion and attention since January 1 this year. It took about 5 months to draft the Law with all the relevant regulations. The final document is a sophisticated framework introducing financial instruments and concepts which have never been practiced in Mongolia before, such as custody, differentiation between nominee and beneficial ownership, options, futures, depository receipts and warrants. Twenty-two tailored regulations have been designed for each component of the Law, such as dual listing, clearing and other relevant components. Continue Reading