Page 45 - GEORptFeb21

8.3 ​Stock market
Georgian central bank announces new regulations as part of capital market reform
The National Bank of Georgia said on July 18 that it has drawn up two new regulations governing brokerage companies.
The aim of the regulations — the Rule of Licensing and Regulation of Brokerage Company and the Additional Rule of Regulation of Brokerage Companies Involved in High-Risk Financing Instruments — is to raise standards of service in the sector, and to protect investors’ interests and allow them to make well-informed decisions. They were drawn up as part of ongoing capital market reforms.
“It is noteworthy that the established requirements fully address the challenges in the sector and also reflect the principles of the EU Directives, International Organisation for Securities Commissions (IOSCO) and European Securities and Markets Commission (ESMA) regulations,” the NBG said in a July 18 statement​.
The rules are mandatory for all licensed brokerage companies, but due to their complexity active brokerage companies have been given a transition period during which they have to bring their work into compliance with the legislation.
As of February 2020, 36 companies are admitted on GSE, with total market capitalization of USD0.668bn and daily turnover in January 2020 was GEL 50, according to the Georgian Stock Exchange (GSE).
8.4 ​International ratings
Georgia - Rating agency
as of June 2020
Bond rating: Moody’s
Ba2 (Stable)
Bond rating: Fitch
BB (Negative)
Bond rating: S&P
BB (Stable)
Fitch revises Georgia’s sovereign outlook to negative
Fitch Ratings has​ announced​ a revision of its outlook on Georgia’s long-term foreign-currency issuer default rating (IDR) to negative from stable and has affirmed the IDR at BB to reflect the evolving impact of the
45​ GEORGIA Country Report​ February 2021 ​ ​www.intellinews.com