28
Sat, Mar
59 New Articles

Amendments to the Serbian Capital Market Act

Amendments to the Serbian Capital Market Act

Serbia
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

As of 2011, the Serbian Capital Market Act has been changed multiple times due to the need for improvement of domestic legislation and alignment with the market’s demands, as well as harmonization of Serbian legislation with the EU acquis. Once again, on 3 February 2020, the National Assembly of the Republic of Serbia adopted amendments to the Capital Market Act, which came into force on 12 February 2020.

On this occasion, one of the main aims for adopting the amendments to the Capital Market Act was its alignment with the Public Debt Act. Additionally, it is expected that the amendments will facilitate foreign investors and funds to invest in domestic securities.

Namely, after a thorough analysis of the Serbian capital market, it was determined that it is necessary to reduce financing costs and provide efficient diversification of investments in order to attract more foreign investments in domestic securities and allow for further development of the Serbian market.

The amendments to the Capital Market Act also introduce one important novelty into the Serbian legislation: besides the Central Securities Depository and Clearing House, now also foreign legal entities may perform clearing and settlement of financial instruments issued by the Republic of Serbia if they are engaged in accordance with the Public Debt Act and Central Securities Depository and Clearing House’s act. In practice, this means that the procedure of account opening will be significantly simplified for foreign investors since from now on they do not have to open them with the Central Securities Depository and Clearing House.

Also, foreign entities that want to perform clearing and settlement of financial instruments won’t have to establish branch offices in Serbia, but will only have to obtain authorization from the Serbian Government. The National Bank of Serbia will be able to open and maintain money accounts of foreign entities that perform these operations.

Henceforth and given all of the above mentioned, we expect that these novelties will attract more foreign investments and overall improve the domestic financial market.

This text is for informational purposes only and should not be considered legal advice. Should you require any additional information, feel free to contact us.

By Milos Velimirovic, Partner, and Nevena Milosevic, Associate, Samardzic, Oreski & Grbovic

Serbia Knowledge Partner

Who we are

Karanovic & Partners is a regional legal practice in Southeast Europe with tradition spanning two decades and cooperating offices in Serbia, Croatia, Slovenia, Montenegro, Macedonia and Bosnia & Herzegovina. With more than 100 attorneys at law cooperating across the region, we take pride in our work, dedication and understanding of our clients' industries and needs.

What we do

We work with some of the most respected and reputable businesses in the world, banks, as well as governments, state-owned entities, startups and NGOs. We see our clients as long-term partners.

We focus on straightforward solutions and tailor-made advice. Lawyers cooperating with us are fully immersed in our clients’ culture and industry to ensure that the work is delivered intelligently and reliably.

What sets us apart?

In our company culture, excellence is a must. We are reliable, adaptive and fast.

Karanovic & Partners operates under the “one team” principle, combining our regional reach and local know-how to deliver coordinated legal advice necessary for achieving our clients’ goals.

All News about, and Legal Analysis by, Karanovic & Partners can be found here.

Firm's website: https://www.karanovicpartners.com/

 

Our Latest Issue