Application of Capital Market Law commences

Application of the Capital Market Law, which was adopted six months ago, started Thursday. This Law will initiate a big number of transactions in the financial market of Serbia and provide a higher level of protection for investors and minor shareholders, it was assessed Thursday at the International Conference on Capital Market, organized by the Belgrade Stock Exchange.

The Capital Market Law entered into force on 17 May 2011, and its application was postponed for six months in order for some bylaws to be adopted so that the application of new regulations could be done in more details.

Opening the Thursday conference, Goran Radosavljevic, state secretary in the Ministry of Finance of Serbia, said that the Capital Market Law would allow for the creation of a fair, efficient and transparent capital market.

According to his words, the Law will also provide a higher level of security and protection for investors through the stipulated formation of the Investor Protection Fund.

Radosavljevic stressed that that fund was only a mechanism of protection, adding that it was still unknown how it would function, that is, whether it was going to be regulated by laws or bylaws.

Branislav Jorgic, director of the broker company Jorgic Broker, reminded that broker companies in Serbia had the time until 17 May 2012 to adapt to the Capital Market Law.

Representatives of the Petroleum Industry of Serbia (NIS), which has over 2.7m shareholders and is listed on the stock exchange since 30 August 2010, said that the bylaws of the new Law were very important for that company because they showed how often a company should innovate its prospects.

They also said they expected the Law to make it possible for investors and shareholders to be fully and timely kept up to date with all relevant information.

Director of the Belgrade Stock Exchange Gordana Dostanic said that the stock exchange was constantly making a technological progress, but added it was not enough to eliminate the development problems of the capital market.

Beogradska berza a.d. Beograd

Ministarstvo finansija Republike Srbije

NIS a.d. Novi Sad

Komisija za hartije od vrednosti Republike Srbije Beograd

Jorgić broker a.d. Beograd

Capital Market Law

Goran Radosavljevic

Milko Stimac

Investor Protection Fund

Branislav Jorgic

NIS

International Conference on Capital Market