Securities Market
A securities market is a marketplace where financial instruments like stocks, bonds, and derivatives are traded. Securities market provides companies and governments with access to capital for growth and development. It allows individuals to invest their savings and potentially earn returns.
Market forces determine fair prices for securities, reflecting their underlying value, which helps investors in making investment decision. Due to market volatility, the value of investor’s assets can fluctuate. Investors might not have all the necessary information to make informed decisions, which is caused by information asymmetry. Moreover, professional and well-informed market participants may act unethically and abuse fair market practices causing losses for the ordinary investors.
The regulation and supervision of the securities market are exercised by the CBA. The main objectives of securities regulation and supervision are to assure the protection of investors' rights and legitimate interests, to ensure the transparency, stable and efficient development of the securities market, to ensure the credibility of the securities pricing system, and to reduce systemic risks in the securities market.
Securities Market abuse and insider dealing
Market abuse is the use of inside information in bad faith to conclude transactions in the market, as well as price manipulations inside trading and price manipulation.
The aim of combating market abuse is to ensure the integrity of the financial market and investors/consumers’ confidence in it, thereby contributing to the formation of an efficient financial market and a favorable environment in RA.
The Law on Securities Market establishes comprehensive rules prohibiting price manipulation and insider dealing, which threaten the fairness and efficiency of the securities market and can harm large number of investors. Strict regulations and enforcement by the CBA are crucial for deterring market abuse.
Securities Market Participants
The Armenian securities market consists of securities issuers and investors, investment services providers, the Central Depositary of Armenia, the regulated securities market operator (Armenia Stock Exchange) and the unregulated over-the-counter market. Read More
Legislation
To ensure that investors have accurate information and safeguards and to maintain market integrity we have set certain regulatory requirements for securities issuers. We evaluate issuer's potential impact on the broader financial system and verify that the issuer meets regulatory standards and requirements.
These requirements help to create a fair and transparent securities market, protect investors, and maintain the stability of the financial system.
Market access
- The Law of the Republic of Armenia "On the Securities Market"
- Regulation 4/04 "Prospectus and Reports of Accountable Issuers"
- Regulation 4/10 "The Structure of the Offer Declaration for Securities Submission, the Procedure for Publication of the Offer and Its Amendments, the Procedure for Calculating the Market Price of the Offer, the Procedure for Implementing a Mandatory Offer to Submit Securities in Case of Suspension of Trading Permission on the Regulated Market, and the Procedure for Any Public Offer or Guidance on Accepting or Rejecting the Offer"
- Regulation 4/15 "The Procedure for Notification and Disclosure Regarding the Acquisition, Increase, and Decrease of Participation in the Charter Capital of an Accountable Issuer"
- Regulation 6/01 "The Registration and Requirements for the Activities of Securitization Funds"
Activity Regulation:
- The Law of the Republic of Armenia "On the Securities Market"
- Regulation 4/04 "Prospectus and Reports of Accountable Issuers"
- Regulation 4/06 "Criteria for Qualifying Investors and the Procedure for Registering Persons as Qualified Investors"
- Regulation 4/08 "The Procedure for Making Reports, References, Explanations, and Other Such Documents Submitted to the Central Bank of the Republic of Armenia by Persons Subject to Supervision in the Securities Market Available to the Public, and Exemptions from the Requirement of Making These Documents Available to the Public"
- Regulation 4/09 "Criteria for Persons Conducting the Audit of Financial and Economic Activities of Accountable Issuers"
- Regulation 4/15 "The Procedure for Notification and Disclosure Regarding the Acquisition, Increase, and Decrease of Participation in the Charter Capital of an Accountable Issuer"
- Regulation 4/16 "The Structure, Form, and Submission Procedure of Reports Containing Information Submitted to the Central Bank Regarding Transactions Carried Out on Their Own Behalf by the Manager of the Accountable Issuer, and Persons Related to Him/Her and the Issuer, Concerning the Issuer's Shares, Derivatives, or Other Securities Related to Such Derivatives"
- Regulation 4/17 "Criteria for the Presence of Price Manipulation Cases, Circumstances That Serve as Grounds for Registering Price Manipulation, and Cases and Actions That Are Not Considered Price Manipulation"
- Regulation 6/02 "The Procedure for Maintaining the Register of Collateral Means for Secured Mortgage Bonds and Submitting Information Contained in the Register to the Central Bank of the Republic of Armenia"
- Regulation 6/03 "The Procedure and Methods for Calculating the Net Present Value of Assets and Liabilities Serving as Collateral for Secured Mortgage Bonds"
- Regulation 6/05 "The Qualification Procedure and Professional Competence Criteria for Controllers of Collateral Means for Secured Mortgage Bonds"
- The Procedure for Submitting Amendments to the Program Prospectus Subject to Registration to the Central Bank
Resolution:
- The Law of the Republic of Armenia "On the Securities Market"
- The Law of the Republic of Armenia "On Banks and Banking Activities"
- The Law of the Republic of Armenia "On Insurance and Insurance Activities"
- The Law of the Republic of Armenia "On the Investment Funds"
- The Law of the Republic of Armenia "On the Insolvency of Banks, Credit Organizations, Investment Companies, Investment Fund Managers, and Insurance Companies".