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April 2021
Capital Market Development Reform
On April 13th, 2021 President Shavkat Mirziyoyev signed the Decree "On Measures for the Further Development of the Capital Market" #6207, which is aimed at giving incentives and dynamics to the development of the country's capital market. It contains the Market Development Program, roadmap, and industry development targets.
The Decree was issued together with another resolution on the liquidation of the Capital Market Development Agency with the transfer of its functions to the Ministry of Finance. There are no significant risks for foreign investors due to the change of the regulator – all functions of supervision and protection of the rights of investors and shareholders were also transferred to the Ministry of Finance. The presence of some conflict of interest in the status of the Ministry of Finance as a Regulator and as a major shareholder of banks promised to be mitigated by sensitive control and transparency of operations.
The document notes most of the current problems in the capital market:
 Low level of free-float and secondary market;
 Lack of additional investment instruments;
 Low participation of institutional investors;
 High share of state-owned companies in turnover;
 Weak market infrastructure;
 Low level and quality of corporate governance;
 Low financial literacy of the population and lack of qualified personnel.
Following indicators listed among a target indicators of market development by 2023:
 Increasing the capitalization of the free-float market to 45 trillion UZS or 5% of GDP by the end of 2023;
 Increase in the share of investment projects financed through the issue of securities up to 5%;
 Training of 40 thousand local minority investors in the basics of financial literacy.
One of the main news is the list of companies whose minority stakes are planned to be offered for public offering on the stock exchange in 2021-2023:
 JSC Uzmetkombinat (UZMK);
 JSC Uzbekneftegaz;
 JSCB National Bank of Uzbekistan (NBU);
 JSCB Halyk Bank;
 JSCB Agrobank (AGBA);
 AKB Microcreditbank (MCBA);
 JSCB Qishlok Kurilish Bank (KKBN);
 JSC Uzagrosugurta (UZAS);
 JSC Kurilishmashlizing;
 JSC Uzbekinvest;
Capital Market
Flash Report