Changes To The Capital Markets Law



The Government of the Republic of Serbia adopted the Draft Law on Capital Market (“Law”) in order to achieve greater transparency and accountability in business, creation, and development of financial institutions offered in the capital market, and thus create a more attractive market for both domestic and foreign investors. The Law shall enter into force on the eighth day from the day of its publication in the Official Gazette, and shall start applying upon the expiration of one year from the day of its entry into force.


During the previous period, the Law was amended several times, following the requirements and changes in market conditions, as well as the needs of this market.


The provisions of this Law regulate:


  • public offering and secondary trading in financial instruments;
  • regulated market, multilateral trading platform in Serbia;
  • providing investment services and performing investment activities;
  • disclosure of financial and other data, as reporting obligations of issuers and public companies in accordance with this Law;
  • Prohibition of fraudulent, manipulative and other illegal actions and acts related to the purchase or sale of financial instruments, as well as the exercise of voting rights in relation to securities issued by public companies;
  • clearing, settlement, and registration of transactions in financial instruments and organizations and competencies of the Central Registry, securities depot, and clearing and organization, and regulatory and supervisory powers of the Securities Commission.


The crisis that hit the world in the previous decade also affected the domestic capital market, which significantly reduced the number of market participants, as well as the number of transactions on the regulated market, and thus the turnover on the Belgrade Stock Exchange.


On the other hand, in order to strengthen the confidence of investors in the domestic market and attract foreign investors, Serbia’s accession to the EU, this Law additionally harmonizes the legal order with EU directives.


The provisions of the Law, in relation to the current Law, additionally regulate:


  • dematerialized securities and operations of persons authorized to perform transactions with financial instruments;
  • conditions and forms of organized trading in financial instruments;
  • In order to maximize transparency and reduce data fragmentation, the institute of data delivery service providers was introduced;
  • Improved investor protection and improved the quality of the information received by clients regarding investment services provided to them;
  • with regard to technology development and infrastructure market, greater regulatory requirements are introduced, especially with regard to new trading platforms and high-frequency and algorithmic trading;
  • the obligations of capital market participants are more precisely regulated in the part related to market abuses;
  • In order to strengthen transparency, the reporting obligations of the Securities Commission have been increased and stricter measures and sanctions that can be taken against legal and natural persons participating in the capital market have been prescribed.


By adopting this Proposal, the intention of the Government of Serbia is focused on contributing to the improvement of the efficiency of the domestic capital market, greater transparency and legal security of market participants, and primarily domestic and foreign investors.

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