New rules adopted to prevent fraud in the securities market!

An important step has been taken in Uzbekistan to ensure transparency in the securities market and to prevent various fraudulent activities. In particular, the new regulations “On the Prevention of Manipulation in the Securities Market” have been officially registered by the Ministry of Justice. These rules are aimed at strengthening transparency in the market, protecting the interests of investors and other participants, and preventing violations and fraud in financial activities.

According to the adopted regulations, the National Agency for Prospective Projects of the Republic of Uzbekistan has been designated as the authorized state body responsible for regulating processes in the securities market. From now on, this agency will strictly monitor all processes in the market and will immediately take action if signs of fraud are detected.

The document emphasizes that a number of prohibitions have been established for professional participants operating in the securities market. In particular, it is strictly forbidden for them to create situations that generate false impressions or mislead other participants.

Participants in the securities market are prohibited from engaging in the following actions:

• Entering into fictitious transactions that do not lead to a change in the ownership of securities, and conducting such transactions to create the illusion of activity in the market;

• Intentionally spreading or presenting misleading or deceptive information to confuse other market participants;

• Engaging in any actions aimed at manipulating market prices by artificially increasing or decreasing prices to create fake demand or supply, thereby allowing third parties to buy or sell securities under favorable conditions for manipulators.

These new regulations are mandatory for all participants in the securities market, and if they observe any violations of these rules, they are required to notify the authorized body within three working days from the date the transaction is registered.

At a time when Uzbekistan’s securities market is developing and the investment environment is improving, the introduction of such regulations and measures is extremely important for strengthening transparency in the market and increasing investor confidence.

Moreover, the implementation of these measures will prevent fraudsters from entering the market, increase accountability, and ensure the protection of participant rights. As a result, the securities market will be able to operate more openly, transparently, and efficiently.

From now on, all participants are responsible for ensuring transparency in market operations, and special attention will be paid to their legal literacy. The new rules are expected to become the foundation for positive changes in the market and to increase the confidence of investors and entrepreneurs in financial operations.

This, in turn, will contribute to the further development of Uzbekistan’s economy and an increase in the flow of international investments. Therefore, the introduction of these new rules is of great importance in ensuring economic stability and simplifying the process of bringing investments into the market.

Along with these measures adopted to prevent fraud and manipulation in the securities market, it is emphasized that participants must have full knowledge of their rights and responsibilities. This will further enhance mutual trust and openness in the market.

With the adoption of the above rules, Uzbekistan’s securities market has taken an important step toward development and consolidation in accordance with international standards. This creates the basis for strengthening Uzbekistan’s position in the global financial market and for establishing a safe and reliable environment for investors. Read 'Zamin' on Telegram!