President Shavkat Mirziyoyev reviewed a presentation outlining strategic measures to further advance Uzbekistan's capital market Monday.
It was noted during the meeting that a new Capital Market Bill has been developed in collaboration with international financial institutions. The legislation aims to regulate the capital market based on modern global standards, protect investor rights, strengthen market infrastructure, and introduce innovative financial instruments.
The bill envisions the introduction of new financial tools widely utilized in international practice. Specifically, in alignment with the standards of the International Swaps and Derivatives Association (ISDA), a framework will be established for derivative financial instruments—such as options, swaps, futures, and forwards—alongside a transaction system based on netting agreements.
Furthermore, the bill creates a legal foundation for banks to issue covered bonds and special mortgage-backed securities. This framework will enable financial institutions to secure long-term capital, stimulate the mortgage market, and expand financial opportunities for the public.
Special emphasis has also been placed on integrating Islamic finance tools. For the first time, the legislation defines the specific conditions for issuing sukuk (Islamic bonds), incorporating various Islamic finance structures such as partnership (musharakah), leasing (ijarah), trading (murabahah), and agency (wakalah) models.
The presentation also addressed updates to the securities market infrastructure. The mandates of the Central Securities Depository will be expanded, granting it the authority to centralize dividend payouts and open correspondent accounts with foreign banks.
In addition, financial institutions will introduce professional custody services to safeguard, account for, and execute transactions involving client securities. By streamlining access to the local market for foreign nominal holders, the country expects to broaden its reach in attracting foreign institutional investors.
The framework also envisions aligning regulatory powers with international criteria and guidelines. This adjustment aims to ensure the effective supervision of market participants, maintain information transparency, respond swiftly to regulatory infractions, and offer robust protection for investor rights.
To facilitate the listing of domestic corporate shares on international financial markets and guarantee the security of investor assets, amendments are being integrated into more than ten laws and legal codes.
The president emphasized that a vibrant capital market serves as a vital engine for funneling long-term capital into the economy, driving corporate transformations, and scaling up private investment inflows.
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