President of Ukraine Volodymyr Zelenskyy signed a law on attracting investments

The law eliminates a number of problems that hindered the full functioning and further development of capital markets in Ukraine.

President of Ukraine Volodymyr Zelenskyy signed a law to simplify the attraction of investments and the introduction of new financial instruments. This was reported on the website of the head of state.

What will change

The law eliminates a number of problems that hindered the full functioning and further development of capital markets in Ukraine. He teaches in the new edition of the laws “On securities and the stock market” (new name – the law “On capital markets and organized commodity markets”) and “On the commodity exchange” (new name – the law “On commodity exchanges”), and also introduces changes to the Civil, Commercial and Criminal Codes, the Code of Ukraine on Bankruptcy Procedures and other legislative acts.

The law comprehensively regulates the functioning of markets for derivative (derivative) financial instruments, capital markets and organized commodity markets, as well as the development of their infrastructure.

Protecting the rights of bondholders

“This law unifies the approach to organizing trading in assets on commodity markets in order to ensure transparency of prices that are formed in such markets and prevent manipulation in them. The document expands the list of financial instruments by classifying money market instruments as financial instruments, as well as introducing new types of securities – bank certificates of deposit, green bonds, option certificates, depositary receipts. The law provides for the regulation of relations arising from the placement and circulation of securities, the conclusion and execution of derivative contracts and transactions with them”, – the President’s Office explained.

The protection of the rights of bondholders is also ensured, including by foreseeing the institution of a meeting of bondholders and a collective representative of corporate bondholders.

Commitment to customers

In addition, the document contains a list and description of the types of professional activities in the capital markets and organized commodity markets, a description of the requirements set for professional participants and their activities, in particular obligations to clients.

Chronology of events

• Ukraine has undertaken to adopt this law by the end of June within the framework of a memorandum with the International Monetary Fund on the current stand by the program. The Rada finally adopted it on June 19, and the speaker signed it on July 27.
• Earlier, on October 17, 2019, a bill No. 2284 was registered in the parliament on amending some legislative acts of Ukraine regarding the simplification of attracting investments and the introduction of new financial instruments
• On December 19, 2019 Rada approved a bill to simplify investment attraction.

Source: unian.ua