Ulaanbaatar
Package regulation of capital market adopted
Economy
Ulaanbaatar /MONTSAME/. The package regulation - including the revised version of the Regulation on Securities Registration, and the Regulation on Bond Registration - was adopted at Mongolia’s Financial Regulatory Commission’s regular meeting on 11 June, 2021.
The reasons for adopting the Regulation on Securities Registration included: to reduce the cost of public offering, to determine the stock price according to free market principles, and to stabilize the stock price.
Underwriting companies will now work in line with the international standards. As a result, companies’ willingness to attract long-term investments (from the capital market by issuing IPOs) will be increased; and a favorable environment for increasing participation of national and international investors will be created.
The regulations related to information transparency of issuers – along with corporate governance, improved structure of finance and reporting, detailing and formatting of types of information, and criteria for professional service providers - are all in line with international standards.
The Regulation on Bond Registration includes details on bonds to be offered to the public - by issuers (who meet with certain requirements) being registered quickly (within 10 days) - and reflects the Program on Issuing Bonds. The Program allows issuers to register required funds once, and offer their securities to the public in stages. In addition, entities are allowed to issue ‘green’ bonds in order to attract investment in their projects that meet with Green Taxonomy of Mongolia, and international standards.
