The Law of Ukraine
On State Regulation of Securities Market in Ukraine
Date of Entry into Force:
November 26, 1996
The Law defines legal principles of state regulation of securities market and their derivatives in Ukraine.
Under the Law state regulation of securities market shall be performed by the State Commission for Securities and Stock Market. Status, tasks and authorities of the State Commission for Securities and Stock Market are determined in Articles 6-8 of the Law.
The main forms of state regulation of securities market are as follows:
- issue of special permits (licenses) for conducting professional activity at securities market, and ensuring control over such activity;
- registration of securities issues and information on securities issues;
- development of the system of protection of investors’ rights and control over observance of these rights by securities issuers and individuals who conduct professional activity at securities market;
- control over authenticity of information that is provided by issuers and entities that conduct professional activity on securities market;
- establishment of regulations and standards for performing transactions at securities market and control over their observance;
- control over observance of antimonopoly legislation at securities market;
- control over pricing systems at securities market;
- control over activities of entities and individuals servicing issue and circulation of securities.
Professional activity at securities market, including broker’s activity on issuance and circulation of securities is conducted by legal entities and natural persons exclusively on the basis of special permits (licenses), issued according to the procedure, established by the current legislation and under the condition of membership in, at least one, self-regulating organization.
According to Article 4 of the Law, the following activities can be conducted at securities market:
- trade in securities;
- settlement and clearing activity;
- securities management;
- maintaining the list of registered securities holders;
- arrangement of trades at securities market.
The Law also determines responsibility of legal entities and natural persons for violations at securities market.
Disputes, arising in the course of application of the norms of this Law, shall be settled in court or court of arbitration in compliance with the established procedure.