AMENDMENTS TO THE LAW ON THE CAPITAL MARKET

On 3 February 2020, the National Assembly of the Republic of Serbia adopted Amendments to the Capital Market Law (“Law”). The Law entered into force on 12 February.

The reason behind introducing this Law lies in the practical need for harmonization with the Law on Public Debt in order to make national securities more attractive to foreign investors.

Introducing a foreign legal entity that performs clearing and settlement operations in accordance with the Law on Public Debt, provides an opportunity for foreign investors and funds to invest in a fast and efficient manner in national securities and Serbian capital market.

Based on the Law, in the addition to the Central Securities Depository and Clearing House, one or more foreign legal entities engaged in accordance with the Law on Public Debt and the Central Securities Depository and Clearing House’s Act may perform clearing and settlement operations of financial instruments issued by the Republic of Serbia.

The Nation Bank of Serbia shall adopt regulations regulating the manner of payment transactions through the money account of a foreign legal entity, which performs the clearing and settlement of national securities in accordance with the Law on Public Debt