PERMISSION ISSUED FOR PUBLIC STOCK TRADING OF EXCHANGE SHARES

Ulaanbaatar /MONTSAME/. A regular meeting of the Financial Regulatory Commission (FRC) was held on 14 December 2022. At the meeting, it was decided to register - additional securities issued by the Mongolian Stock Exchange (MSE) within the register of securities approved for public offering.

‘Mainstream for the public trading of shares of state-owned legal entities in 2022-2023 through the exchange’ (approved by Parliament Resolution No. 16 of 2022).

The ‘Mainstream’ provides for the following:

• public oversight of state-owned legal entities,
• improvement of financial discipline and governance, and
• stability and transparency of activities.

The ‘List of State-Owned Legal Entities for Public Trade of State-Owned Shares in 2022-2023’ (approved by the Government’s Resolution No. 244) and the Mongolian Stock Exchange (MSE) is registered in this list. The stock exchange is a type of JSC, and the MSE will offer 34% of its total shares to become a publicly traded company. This is part of the implementation policy, providing for state-owned companies' privatization by the Parliament and the Government. This decision is an important policy measure that will create the following favorable conditions for the MSE:

• revision of the structure of shareholders,
• development of public oversight,
• improvement of the profitability of the company's operations, corporate governance, and information transparency,
• attraction of the interest of foreign professional investors in the domestic market, and
• increase in the inflow of investment by strengthening the base of professional investors.

In addition, the FRC’s meeting also provided decisions on the following issues:

• one company (in the insurance market) changed the structure and composition of its shareholders,
• one company was issued licenses to operate as an actuary, and
• two savings and credit cooperatives’ special licenses of activities were extended.

FRC

Source:https://montsame.mn/en/read/309918