The Law on Amendments to the Law on the Capital Market (“ALCM”) was published in the “Official Gazette of the Republic of Serbia”, No. 9/2020 on February 4, 2020 and it will come into force on February 12, 2020.
Since its enactment in 2011, the Law on the Capital Market has been amended several times to improve the legislative framework and to align it with the needs of legal practice and other laws that have been amended in the meantime, as well as to harmonize this framework with relevant EU regulations. Besides the harmonization of the Law on Capital Market with the Law on Public Debt, it is expected that the ALCM will facilitate foreign investments in domestic securities and capital market in a quick and efficient way.
Moreover, the purpose of the ALCM is to enable better availability of financial instruments issued by the Republic of Serbia to foreign investors, to reduce financing costs and ensure diversification of investments, which in total should give an impulse to further development of the Serbian financial market.
Based on the ALCM, in 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.
Also, it is stipulated that the National Bank of Serbia, in addition to the Central Securities Depository and Clearing House’s money accounts, will be able to open and maintain money accounts of a foreign legal entity that performs these operations.
The National Bank of Serbia shall adopt regulations governing the manner in which payment transactions will be performed through the money accounts of the Central Securities Depository and Clearing House and a foreign legal entity.
If you have any additional questions or need further information regarding this matter, please contact Igor Živkovski, Živković Samardžić Corporate and M&A Partner, or any of your regular contacts at Živković Samardžić.