Uzbekistan Passes Capital Market Law in First Reading

Uzbekistan's Oliy Majlis, specifically its Legislative Chamber, has given initial approval to a proposed "On the Capital Market" law. This legislation seeks to modernize the country's capital market, bringing it up to international benchmarks and broadening the scope of available financial tools.

Attendees at the session highlighted that the bill introduces novel financial instruments for both individual and institutional investors. These include Islamic bonds (sukuk), sustainability bonds, and various forms of asset-backed securities such as covered and securitized bonds.

A core objective of the proposed law is to bolster safeguards for investors and citizens, streamline the functioning of market infrastructure, and enhance the capital market's appeal for investment.

Discussions among deputies centered on strategies to draw in investors, elevate corporate governance standards, and enforce more stringent requirements for corporate information disclosure.

Furthermore, lawmakers stressed the importance of aligning the authority of the capital market's regulatory body with the guidelines set by the International Organization of Securities Commissions (IOSCO). They also underscored the need to refine the operations of the Central Depository and credit rating agencies.

Deputies articulated that the enactment of this law would unlock greater access to financial resources, facilitate the creation of contemporary investment products, offer more robust protection for investors' rights and legitimate interests, and cultivate a more transparent and accessible environment for both domestic and international investment.

Following deliberation, the draft law successfully passed its first reading among the deputies.