Regulation of the securities market. Ivanova L.N.
The regulation of the securities market is the streamlining of the activities of all its participants and transactions between them by organizations authorized by the company for these actions.
Regulation of the securities market covers all its participants: issuers, investors, professional stock intermediaries, market infrastructure organizations.
Regulation of market participants can be external and internal. Internal regulation is the subordination of the activities of this organization to its own regulatory documents: the charter, rules and other internal regulatory documents that determine the activities of this organization as a whole, its divisions and its employees. External regulation is the subordination of the activities of this organization to the regulations of the state, other organizations, international agreements.
The regulation of the securities market covers all types of activities and all types of operations on it: issue, intermediary, investment, speculative, pledge, trust, etc.
Regulation of the securities market is carried out by bodies or organizations authorized to perform regulatory functions. From these positions distinguish: . state regulation of the market, carried out by state bodies whose competence includes the performance of certain regulatory functions; . regulation by professional participants in the securities market, or self-regulation of the market; This process is currently developing in two ways. On the one hand, the state can transfer part of its market regulation functions to authorized or selected by it organizations of professional participants in the securities market. On the other hand, the latter can themselves agree that the organization created by them receives certain rights of regulation in relation to all participants in this organization; . public regulation, or regulation through public opinion; Ultimately, it is the reaction of broad sections of society as a whole to some actions in the securities market that is the root cause for which certain regulatory actions of the state or market professionals begin.
Regulation of the securities market usually has the following objectives: . maintaining order in the market, creating normal conditions for the work of all market participants; . protection of market participants from dishonesty and fraud of individuals or organizations, from criminal organizations;
Ensuring a free and open pricing process for securities based on supply and demand;
Creation of an efficient market where there are always incentives for entrepreneurial activity and where every risk is adequately rewarded;
In certain cases, the creation of new markets, the support of markets and market structures necessary for society, market initiatives and innovations, etc.;
Influencing the market in order to achieve some public goals
(for example, to increase the rate of economic growth, reduce unemployment, etc.).
The process of regulation in the securities market includes: . creation of a regulatory framework for the functioning of the market, i.e. development of laws, regulations, instructions, rules, methodological provisions and other normative acts that put the functioning of the market on a generally recognized and observed basis by all; . selection of professional market participants; the modern securities market, like, perhaps, any other market, is impossible without professional intermediaries. However, not any person or any organization can take the place of such an intermediary. To do this, it is necessary to meet certain requirements for knowledge, experience and capital, which are established by authorized regulatory organizations or bodies; . control over compliance with the implementation by all market participants of the norms and rules for the functioning of the market; this control is carried out by the relevant control bodies; a system of sanctions for deviation from the norms and rules established in the market; such sanctions may be: oral and written warnings, fines,
The principles of regulation of the Russian securities market largely depend on the political and economic conditions existing in the country, but at the same time they must also reflect the time-tested historical practice of the global securities market. The main of these principles are: . separation of approaches in regulating relations between the issuer and investor, on the one hand, and relations involving professional market participants, on the other. The first link regulates the relationship between the owner of the rights to the security and the person liable to it; in the second - relations in which transactions are concluded and executed between the issuer and a professional participant, an investor and a professional participant, or between professional participants; . separation from all types of securities of the so-called investment, i.e. those that are mass-produced, in batches and can be quickly distributed and the market for which can be quickly organized. It is precisely these securities that need careful regulation, since it is precisely with such tools that attackers can cause great damage to market participants; . the widest possible use of procedures for disclosing information about all market participants - issuers, large investors and professional participants. This mechanism achieves the possibility for market participants to obtain information about each other in order to make business decisions during market operations; . the need to ensure competition as a mechanism for objectively improving the quality of services and reducing their cost. This principle is implemented through the rejection of regulatory documents that make preferences for individual market participants. All subjects of regulation have equal rights before the regulatory authorities - the rules do not mention specific names or brand names; . when separating powers between regulatory bodies, one should proceed from the fact that rule-making and law enforcement should not be combined by one person; . ensuring publicity of rule-making, wide public discussion of ways to solve market problems. This principle improves the quality of rule-making and its objectivity; . observance of the principle of continuity of the Russian system of regulation of the securities market, which has a certain history and traditions. It is impossible not to take into account the growing integration of the national stock market with the international one. It is inefficient to start building a new market regulation system “from the center of the field”, it is necessary to practically take into account the experience of the world market, process it qualitatively and use successful regulatory solutions. This experience should not be made into a dogma, as repeating the mistakes of others can slow down progress in market regulation; optimal distribution of the functions of regulation of the securities market between state and non-state governing bodies (commercial organizations, public organizations).
The state in the Russian securities market acts as: . the issuer when issuing government securities; . investor in the management of large portfolios of shares of industrial enterprises. . a professional participant when trading shares during privatization auctions; . regulator when writing legislation and by-laws; . the supreme arbitrator in disputes between market participants through the judicial system.
State regulation of the securities market is regulation by public authorities. The system of state regulation of the market includes: . state and other regulations; . state regulatory and control bodies.
Forms of government market management can be divided into: . direct, or administrative, management; . indirect, or economic, management.
Direct, or administrative, management of the securities market by the state is carried out by: . establishing mandatory requirements for all market participants. valuable papers; . registration of market participants and securities issued by them; . licensing of professional activities in the securities market; . ensuring transparency and equal awareness of all market participants; . maintaining law and order in the market.
Indirect, or economic, management of the securities market is carried out by the state through the economic levers and capitals at its disposal: . taxation system (tax rates, benefits and exemptions); . monetary policy (interest rates, minimum wage, etc.); . state capitals (state budget, off-budget funds of financial resources, etc.); . state property and resources (state enterprises, natural resources and land).
The structure of state regulatory bodies of the Russian securities market has not yet been formed. At the beginning of 1996, it consisted of: The highest bodies of state power: The State Duma issues laws regulating the securities market; The president issues decrees because laws are being adopted rather slowly and the development of the securities market in Russia is carried out mainly in accordance with these decrees; their main goal is the implementation and acceleration of the process of privatization and economic reform; Government - issues decrees, usually in follow-up to presidential decrees.
Federal Commission for the Securities Market; Ministry of Finance of the Russian Federation; Central Bank of the Russian Federation;
State Committee for Antimonopoly Policy; Gosstrakhnadzor.
The Federal Commission on the Securities Market has many powers in the areas of coordination, setting standards, licensing, setting qualification requirements, and so on. Over the past year, the functions of the FCSM have been significantly expanded: it has been entrusted with the exclusive right to state registration of securities issues, the exclusive position of an organization that has the right to license stock market participants. During the period of the October-November stock market crisis, which swept over the Russian securities market, the FCSM together with the Central Bank took part in the program to overcome the crisis. In particular, the Commission established a single procedure for calculating stock indices for all trading floors and introduced strict trading rules depending on its changes.
The Ministry of Finance of the Russian Federation - a ministry within the Government - until recently registered issues of securities of corporations (except for credit organizations), subjects of the federation and local authorities, licenses stock exchanges, investment companies, investment funds, establishes accounting rules for transactions with securities, carries out issuance of government securities and regulates their circulation.
The Central Bank of the Russian Federation is a federal body acting on the basis of law that registers issues of securities of credit institutions, carries out operations and regulates the procedure for credit institutions to carry out operations on the open securities market, pawnshop lending and rediscount of bills, establishes and controls antimonopoly requirements for operations on the securities market. securities of credit institutions, regulates the activities of clearing organizations and organizations that make non-cash settlements in transactions with securities (including depositories) on the securities market, and controls the export and import of capital.
The State Committee for Antimonopoly Policy establishes antimonopoly rules and exercises control over their implementation.
Gosstrakhnadzor regulates the peculiarities of activities in the securities market of insurance companies.
The main legislative acts that regulate the Russian securities market:
Civil Code of the Russian Federation, Parts 1 and II (1995-1996);
Law on Banks and Banking Activities (1990);
Law on the Central Bank of the Russian Federation (1995);
Law "On the privatization of state and municipal enterprises in
RSFSR" (1991);
Law on Commodity Exchanges and Exchange Trade (1992);
Law “On currency regulation and currency control” (1992);
Law “On the State Domestic Debt of the Russian Federation” (1992);
Law on Joint Stock Companies (1996)
Securities Market Law (1996);
Decrees of the President on the development of the securities market; since 1992, about fifty decrees have been issued, which basically regulate the Russian securities market;
Decrees of the Government of the Russian Federation mainly concern the regulation and development of the government securities market in all their varieties.
Regulations and resolutions adopted by the Federal Securities and Stock Market Commission.
The main body that controls the activities of trade organizers in the securities market in accordance with the legislation of the Russian Federation is
Federal Commission for the Securities Market. The FCSM has the exclusive right to license the activities of trade organizers, determines the status and basic principles of the activities of exchange and over-the-counter systems, issues laws that regulate and control their behavior on the market. Fundamental here are the Temporary Regulations on the requirements for organizers of trading in the securities market and the Temporary Regulations on licensing types of activities for the organization of trading in the securities market, adopted
The exchange or over-the-counter system must be organized in the form of a non-commercial partnership;
The organization of trade is an exclusive type of activity, i.e. the organizer of trade in the securities market has no right to combine this type of activity with any other. Prior to the adoption of the Provisional Regulations, a stock exchange or an organizer of over-the-counter trading had the right to engage in, for example, clearing activities. For example, at the MICEX, the MICEX Depository was engaged in servicing mutual settlements on government securities, but now, after this provision came into force, the MICEX was forced to change the servicing depository to the National Depository Center.
The requirements for the minimum equity capital and the number of members for an OTC trade organizer or a stock exchange to obtain a license are defined;
. The main provisions for the listing and delisting of securities have been introduced.
Regulation of the securities market - ϶ᴛᴏ streamlining the activities of all its participants on it and transactions between them by organizations authorized by the company for these actions. The regulation of the securities market covers all its participants: issuers, investors, professional stock intermediaries, organizations of the market infrastructure, all types of activities and all types of operations on it: issue, intermediary, investment, speculative, pledge, trust, etc. (scheme)
State regulation of the securities market is carried out by:
- establishing mandatory requirements for the activities of issuers, professional participants in the securities market and its standards;
- state registration of issues of emissive securities and prospectuses of securities and control over compliance by issuers with the conditions and obligations stipulated in them;
- licensing the activities of professional participants in the securities market;
- creation of a system for protecting the rights of owners and monitoring the observance of their rights by issuers and professional participants in the securities market;
- prohibition and suppression of the activities of persons engaged in entrepreneurial activities in the securities market without a license.
The structure of state regulatory bodies of the Russian securities market:
Highest level:
- State Duma - issues laws regulating the securities market;
- President - issues decrees, as laws are adopted very slowly;
- The Government of the Russian Federation - issues resolutions in the development of presidential decrees, determines the general directions for the development of the securities market.
Ministerial level:
- The Federal Commission for the Securities Market (FCSM) is the main regulatory body;
- Ministry of Finance - issues government securities and regulates their circulation;
- Central Bank - registers issues and controls the circulation of securities of credit institutions;
- Ministry for Antimonopoly Policy and Entrepreneurship Support - establishes antimonopoly rules in the securities market and controls their implementation;
- Ministry of State Property Management - deals with the privatization of state property, manages packages of securities owned by the state;
- Russian Federal Property Fund - sells packages of securities during the privatization of enterprises, etc.
The FCSM will be the federal executive body responsible for pursuing state policy in the field of the securities market, controlling the activities of professional participants in the securities market by determining the procedure for their activities and determining the standards for issuing securities. It is worth saying that the powers of the FCSM do not apply to the procedure for issuing debt obligations of the Government of the Russian Federation and securities of the constituent entities of the Russian Federation (Table 1)
Table 1
Development of the main directions for the development of the securities market and coordination of the activities of federal executive authorities on the regulation of the securities market | |
Licensing | Issuance (suspension, cancellation) of licenses for professional activities in the securities market, activities of self-regulatory organizations |
Control over compliance with the requirements of the legislation of the Russian Federation on the Central Bank, standards and requirements approved by the FCSM | Control over issuers, professional participants in the securities market, self-regulatory organizations |
Development and approval of the regulatory framework | Development and approval of the regulatory framework for:
|
Disclosure of Information in the Securities Market | on registered issues of securities, professional participants in the securities market and regulation of the securities market |
Filing claims |
|
Informing investors |
|
Certification | Issuance (suspension, cancellation) of qualification certificates of managers and specialists - professional participants in the securities market |
The FCSM has the right:
- make a decision to suspend or revoke a license to carry out professional activities in the securities market;
- carry out inspections of issuers, professional participants and self-regulatory organizations of professional participants in the securities market;
- send mandatory instructions to issuers and professional participants in the securities market, as well as their self-regulatory organizations, require them to submit documents necessary to resolve issues;
- to cancel the qualification certificates of individuals in the event of repeated or gross violation of the legislation of the Russian Federation on securities.
Functions of the regional branches of the FCSM:
- Registration of the issue of emissive securities of issuers located in the given region.
- Issuance of licenses to professional participants.
- Taking qualification exams from specialists in the securities market and issuing ϲᴏᴏᴛʙᴇᴛϲᴛʙ certificates.
- Function of control over issuers and professional participants.
- Formation of a regional information disclosure system.
In order for professional participants in the securities market to be directly involved in regulation, the so-called self-regulatory organizations (SROs) of professional participants in the securities market are organized. Their goal is to develop specific requirements for their members and supervise their observance, as well as assistance in organizing work, representing their interests in government bodies, and more.
A self-regulatory organization of professional participants in the securities market (SRO) is a voluntary association of professional participants in the securities market, operating in accordance with the legislation of the Russian Federation and functioning on the principles of a non-profit organization. The SRO establishes mandatory rules for their members to carry out professional activities in the securities market, standards for conducting transactions with securities and monitors their observance.
Self-regulatory organization has the right:
- receive information on the results of inspections of the activities of their members;
- develop rules and standards for the implementation of professional activities and operations with the Central Bank by their members and monitor their observance;
- monitor compliance by their members with the rules and standards adopted by the SRO for the implementation of professional activities and transactions with securities;
- engage in the training of officials and personnel of organizations engaged in professional activities in the securities market, determine the qualifications of these persons and issue qualification certificates to them.
The main legislative document that regulates activities in the securities market will be the Civil Code (as amended on 10.01.2003) Articles 142-149. It is worth noting that he gives the concept of a security, defines the types of securities and touches on the main issues of holding securities, transferring rights under a security and execution on it. A separate article is devoted to the peculiarities of fixing rights on non-documentary securities.
Federal Law "On the securities market". Last revised December 2002. It regulates relations arising from the issue and circulation of equity securities, describes the basics of regulation of the Russian securities market, the rights and functions of the FCSM, as well as the features of the creation and activities of professional participants in the securities market, self-regulatory organizations.
Federal Law "On joint-stock companies". Last edition - April 2003. In addition to general issues affecting the functioning of joint-stock companies (issues of establishment, management of joint-stock companies, reorganization and liquidation), it reflects the rights of owners of various types of securities that are issued by corporations, certain restrictions are indicated related to the volume of issuance of various securities securities, the minimum amount of authorized capital, issues related to the payment of income on securities.
Federal Law "On the Protection of the Rights and Legitimate Interests of Investors in the Securities Market". Last edition - December 2002. Aimed at ensuring state protection of the rights and legitimate interests of individuals and legal entities, the object of investment of which will be emission securities. This law defines restrictions on the issue and circulation of securities, introduced in order to protect the rights of investors; the procedure for providing information to investors; the procedure for compensation for damage to investors caused by illegal actions of issuers and professional participants in the securities market is determined.
The formation of the securities market or the stock market has been going on for many years, but, despite the long period of its existence, the stock market is in the process of modernization to this day. As the securities market functions as an integral part of the financial market, the need to legally ensure the protection of the rights and interests of its participants from illegal transactions is carried out by the state, which in turn creates an effective policy for managing the securities market, taking into account the current trends in the country's economy.
The relevance of the given topic is very obvious, since the stock market is very imperfect and subject to risk, its participants need to be protected by a stabilizing force that has the authority to regulate the securities market. Such a force is undoubtedly the state.
Any activity at any stage should be regulated and the securities market is no exception, but in order to achieve effective attraction of investments into the economy, constant replenishment of state budget deficits, as well as prevention of risks and losses, the existing system of state regulation, which includes 4 groups, which include: state control, protection of investors from adverse market situations, as well as mandatory registration and mandatory requirements for participants, should be constantly supplemented and improved.
Denoting the so-called market infrastructure, it is necessary to single out the regulatory system of the securities market, which includes:
- State regulatory bodies;
- Self-regulatory bodies;
- Legislative norms;
- Trends and customs of the securities market.
Studying each of the above regulators of the stock market, the question arises of the significance and significant assessment of the actions of these very bodies. The main, and, perhaps, the main regulator of the securities market is the state itself, exercising control and comparability of actions for conducting operations taking place on the securities market, in connection with the prevailing trends and market infrastructure, ensuring its work through two directions:
Regulation of the activities of professional participants in the stock market, taking into account compliance with current legislation, as well as control over the development of certain rules that determine the issue of securities.
Providing a license that gives the right to engage in any activity in the stock market.
The systematic combination of these two areas includes the Central Bank of the Russian Federation, being a professional market participant, it plays the role of both an executor for the implementation of operations on the stock market, performing in its own way the functions of an investment company for the initial placement of securities, and a regulatory link, when making its own resources into the stock values of the state, while fulfilling issuance obligations. As an agent of the Government of the Russian Federation for the placement of government securities, the Bank of Russia essentially performs the functions of an investment company servicing the initial placement of securities. At the same time, by investing its own resources in state stock values, the Bank of Russia acts as a dealer. In addition, the Bank of Russia creates a secondary market for government securities, acting on it as a financial broker working on behalf of the Government. It also performs the functions of a depository, clearing and settlement center for transactions with individual issues of government securities, being in this sense a specialized organization for accounting, storage, and settlement of transactions with stock values.
The Bank of Russia uses operations with government securities as an instrument of monetary policy. He also acts as a government regulator for commercial banks - professional participants in the securities market, and often as a consultant to the Government and parliamentary bodies, coordinator in pooling resources to develop new securities trading systems, for example, trading in government short-term bonds, participates in the development of legislative acts about the financial market, trust, bills.
Considering the relations that are developing in the stock market between participants and regulators, certain groups of market participants can be distinguished: investors, issuers, the state, professional participants, self-regulatory organizations. Visualizing the generalized structure of operations of entities in the securities market, the main feature is the achievement of a certain result associated with both the issuance of securities and their circulation. In other words, the structuring systems of state regulation of the securities market imply the maximum efficiency of implementation in the corrective process in the market, and only a small part is allocated to self-regulatory bodies. But there is a downside - when the role of the state in regulation occupies a less important position than a significant level of systematization of control by the market participants themselves. If we talk about comprehensive regulation, then in most countries of the world the place of state control is given somewhere in the "middle".
Considering the Russian stock market, one of the main regulators of the securities market in the country is the Federal Financial Markets Service, which consists of the central office and territorial bodies and includes 14 departments, in which each is responsible for various processes, such as: issue, monitoring, legal regulation and activities of professional market participants.
The evolutionary prospects of the RZB for 2018 largely depend on attracting the largest number of investments and ensuring full and high-quality protection of the state from illegal acts committed on the market.
Thus, today the Russian stock market is underdeveloped not only in relation to developed countries, but also developing ones. Government support in aggregate gives a large start-up to RZB participants to invest money without fear of the risk of being deceived. Of course, it is impossible to idealize state programs, since everywhere there are pros and cons, but in my opinion, the implementation of state regulation in the present and future will not allow the securities market to fall into a state of sonation, but rather serve as a kind of impetus for achieving stability in the stock market. market. At the end of this article, it should be noted that the trends in the development of the securities market depend not only on economic indicators and government programs, but also on the specific, high-quality work of the securities market itself in Russia.
Bibliography:
- Federal Law No. 39-FZ of April 22, 1996 (as amended on December 31, 2017) "On the Securities Market" (as amended and supplemented, effective from February 1, 2018)
- Voloskova A.V. The role of the state in regulating the securities market in Russia and Great Britain // Young scientist. - 2017. - No. 9. - S. 561-563.
- Selishcheev A.S. Securities market: textbook for bachelors / A.S. Selishchev, 2015
- Sanzharovsky Yu. I. The government securities market in Russia // Economic Journal. 2016. No. 3 (35).
- Belovozov V.A., General provisions on securities: some legal misconceptions// Legislation, 2016, No. 2.
- Galaganova V.A., Basovin A.I. Securities Market: Textbook.-2nd id. revised and additional - M.: Finance and statistics, 2015. - 448 p.
Lecture 1. General characteristics of the financial market.
The structure of the financial market.
The main characteristics of the securities market.
State regulation of the securities market.
(1) A financial market is an organized or informal trading system for financial instruments. In this market, money is exchanged, credit is granted, and capital is mobilized. The main role here is played by financial institutions that direct cash flows from owners to borrowers. Commodities are actually money and securities. The financial market, therefore, is designed to establish direct contacts between buyers and sellers of financial resources.
Figure 1. Structure of the financial market
In general, the financial market is divided into the money market and the capital market. In the money market, operations are carried out to provide and borrow free funds of enterprises and the population for a short period. The capital market borrows funds for a long period of time. Differences are determined by the purpose of borrowed funds. The money market serves the sphere of circulation, capital functions on it as a means of circulation and payment, which determines the types of financial instruments in this market. The capital market serves the process of expanded reproduction: capital functions as a self-increasing value.
The role of the loan capital market in the economy is manifested in three main directions:
1) provision of loan capital to the private sector, the state and the population, as well as to foreign borrowers;
2) accumulation of free money capital and monetary savings of the population;
3) accumulation and concentration of fictitious capital.
Fictitious capital is understood as the accumulation and mobilization of money capital in the form of various securities (the second part of the capital market), which, unlike real capital (in the form of money, equipment), is not a value, but only the right to receive income.
From the standpoint of considering options for obtaining investment income, it is also necessary to consider such segments of the financial market as the foreign exchange market and the market for deposit and credit operations, which are overwhelmingly provided by banking institutions.
The foreign exchange market is a set of conversion and deposit-credit operations in foreign currencies carried out between counterparties, foreign exchange market participants at the market rate or discount rate. Currency transactions - contracts of foreign exchange market agents for the purchase and sale of foreign currency on certain conditions and on a certain date: amount, exchange rate, interest rate and period. The main difference between conversion operations and deposit-credit operations is that the former do not have a duration in time, that is, they are concluded at a certain point in time, while deposit-credit operations have a duration in time and different urgency.
Deposit and credit operations are a set of operations for the placement or attraction of free funds for a certain period, at a certain accrued interest, and with possible additional conditions for the implementation of these operations.
(2) The main characteristics of the securities market.
Securities are monetary documents certifying the ownership or loan rights of the owner of the document in relation to the person who issued such a document (issuer) and bears obligations under it. The independent movement of fictitious capital in the market leads to a sharp separation of the market value of securities from the book value, which further aggravates the gap between real material values and their relative financed value presented in securities.
The securities market serves both the money market and the capital market, and securities cover only part of the movement of financial resources. The main function of the securities market is the distribution of funds, the transfer of capital from one industry to another through market instruments (securities). Through the mechanism of issuing, placing, buying and selling securities, the necessary investment sources are formed for the modernization and expansion of all spheres of social reproduction. Securities and are issued primarily for the purpose of mobilizing and more rational use of the financial resources of enterprises and the savings of the population.
The securities market can be divided into primary and secondary, exchange and over-the-counter.
The primary market is the market for the first and repeated issues (releases) of securities, where their initial placement between investors is carried out. Within the framework of this market, the primary placement of securities (their purchase, sale, subscription) is carried out. At the same time, the issuer guarantees investors certain rights to property and / or income from it, receiving funds for investment in return. The main task of the primary market is to minimize the risks of the investor.
In the secondary market, the circulation of the Central Bank takes place, i.e. change of owner. At the same time, market prices are regulated, the situation on the market is changing spontaneously and constantly. The main task of the secondary market is to ensure the liquidity of the Central Bank, create conditions for trading, conditions for the rapid sale of the Central Bank by the owners at prices prevailing in the market.
The exchange market is associated with the concept of the stock exchange. It is an organized market with the maximum level of control and regulation.
The over-the-counter market covers transactions with the securities outside the exchange.
The cash market of the securities (cash market or spot market) is a market with immediate execution of transactions, that is, with the full execution of concluded transactions (delivery against payment) within 2 or 4 working days.
The Derivatives Market of the Central Bank is a market in which retail transactions are concluded with a maturity exceeding 4-5 business days, for example, with options or futures.
According to the territories in which securities are traded, there are:
Local markets of the Central Bank;
National markets of the Central Bank;
International securities markets.
In the economic system of the state, the stock market performs important functions, ensuring the accumulation of temporarily free funds for investment in promising sectors of the economy.
With a long-term imbalance in the supply and demand for capital, as a result of fluctuations in the economic situation, loan capital begins to be invested where it is possible to receive income in the form of interest, dividends. The impersonality of the loan capital market is manifested in the fact that its development and movement is carried out through the securities market (in order to receive income not lower than the average loan interest rate).
Consequently, the holder of securities has the ability to turn fictitious capital (securities) into real money. Therefore, the securities market is an integral part of the national capital market.
The functioning of the securities market is largely speculative. The state participates in the redistribution of capital, acting through its credit institutions both as a seller and as a buyer of securities. Banks, insurance companies, investment and pension funds, carrying out transactions with securities, are already accumulating real capital, subsidizing the state, enterprises and the population.
Since not all securities originate from money capital, the securities market cannot be fully classified as a financial market. To the extent that the securities market is based on money as capital, it is called the stock market (as an integral part of the financial market). The stock market forms a large part of the securities market.
Often the concepts of the securities market and the stock market are considered synonymous. Stock market securities include commodity and currency futures, stock options, etc.
The securities market has a number of functions that can be divided into general market (inherent in each market) and specific (distinguishing this market from others).
The general market functions of the securities market include:
1) commercial (profit making);
2) price (formation of market prices);
3) informational (bringing the necessary information to the participants);
4) regulatory (creation of rules for trade and participation in it).
The specific functions of the securities market include:
1) redistribution function, which can be divided into three subfunctions:
* redistribution of funds between industries and areas of market activity;
* transfer of savings (population) from unproductive to productive form;
* Financing the state budget deficit on a non-inflationary basis, i.e. without issuing additional funds into circulation;
2) the function of insurance of price and financial risks (hedging).
An important condition for the functioning of the stock market is the obligatory observance by all its participants of the rules of work in the securities market. The supervisory bodies of the stock market are responsible for regulating the process of interaction between participants in the securities market, the fulfillment of their obligations, legal requirements and compliance with the rules of work in the stock market. The structure of the stock market is shown in Figure 2.
TEST
Topic: "State regulation of the securities market"
Introduction
The securities market as an integral part of the financial and credit system is subject to state regulation, the main purpose of which is to protect the interests of investors from illegal actions by issuers or intermediaries.
Accordingly, an active and purposeful state policy is needed in relation to the development of the securities market, the formation of a market regulation model that will be adequate to the specific conditions of the Russian economy, national interests and traditions.
Thus, the securities market is currently important in terms of restoring the economic situation in the country. The purpose of my work is to create a picture of the development of the securities market and the role of Russian government agencies in its regulation.
1. The essence of the securities market
If we proceed from the fact that the market in general is any institution or mechanism that links together the bearers of demand and suppliers of certain goods, works or services, then the securities market is one of the segments of this market where securities are circulated between various entities. .
In general, the securities market can be defined as a set of economic relations regarding the issue and circulation of securities between its participants. In this sense, the concept of a securities market does not and cannot differ from the definition of a market for any other commodity. For example, F. Kotler defined the market as a “sphere of potential exchanges”, K.R. McConnell as "an institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of particular goods and services." Differences appear if we compare the object of the studied market itself. The nomenclature of the securities market does not correspond to the market of any particular product, but to the commodity market as a whole. If goods are produced in plants and factories, then securities are put into circulation. In order for a product to reach its consumer, it needs its own organization of commodity circulation, and for a security it needs its own. A commodity is sold one or more times, while a security can be sold and bought an unlimited number of times. The securities market is an integral part of the market of any country. The basis of the securities market is the commodity market, money and money capital. The first is a superstructure over the second, derivative in relation to them.
There are the following types of securities markets:
· international and national securities markets;
· national and regional (territorial) markets;
Markets for specific types of securities (stocks, bonds);
· markets for state and corporate (non-state) securities;
· markets for primary and derivative securities.
The securities market is a kind of mirror that reflects the main features of the modern economy. The situation on the securities market informs investors about the economic situation in the country and gives them guidelines for investing their capital.
The main purpose of the securities market in any society with developed market relations is that it allows you to accumulate temporarily free funds and direct them to the development of promising sectors of the economy.
Individuals and organizations that have temporarily free surplus of funds and are interested in increasing them are called investors.
Organizations interested in raising funds for the development of production, trade, implementation of any programs that require certain monetary costs (investments) are called issuers.
The securities market is between them as an intermediary. Thus, the securities market is the mechanism that helps issuers to accumulate investors' money, and investors to increase their money by investing money in securities and, if necessary, convert securities into money at any time.
If the participants in the securities market do not fulfill their obligations to each other, the securities market ceases to function. This is due to the fact that securities are not essential and any investor can do without them in everyday life. In order for stock market participants to comply with the rules of the game, there must be supervisory bodies that are responsible for regulating the process of interaction between stock market participants and fulfilling their obligations to each other, legal requirements and compliance with the rules of work in the stock market. In the corporate securities market, regulatory functions are performed by the Federal Securities Commission.
The securities market is divided into:
ü The primary market is the acquisition of securities by their first owners, this is the first stage in the process of selling securities, this is the first appearance of securities on the market where their initial placement is carried out.
ü The secondary securities market is the circulation of previously issued securities, it is a set of all acts of sale and purchase or other forms of transfer of securities from one owner to another throughout the entire life of the securities.
Both of these concepts are closely related. Without a primary securities market, which supplies stock values for circulation, there can be no secondary market.
Without a full-fledged secondary market, it is impossible to talk about the effective functioning of the primary market and, in general, about the securities market. The secondary market, by creating a mechanism for carrying out transactions with securities, enhances investor confidence in the securities market, stimulates their desire to acquire stock values, and contributes to a more complete accumulation of society's resources in the interests of expanded reproduction.
The efficient operation of the secondary market depends on the state of the infrastructure of the securities market.
The infrastructure of the securities market is the general conditions for the development of the securities market. If there is no normal infrastructure that meets the needs of the current level of development, then the securities market is not able to perform its functions in full or performs them at an insufficient level, which is why the entire economy of the country as a whole suffers.
The unified infrastructure of the securities market is subdivided into:
1. legal infrastructure, which is a set of normative legal acts regulating the early sphere of public relations and legal mechanisms of influence in resolving conflict situations;
2. information infrastructure, which includes a set of bodies and organizations that collect, store, transfer, replicate and disseminate information about securities, professional participants in the stock market, and the state of the stock market.
3. functional infrastructure (stock exchanges, over-the-counter stock trading systems);
4. technical infrastructure (depository);
5. regulatory infrastructure.
Any transactions with securities and even simple possession of certain types of securities entails the emergence of an important factor as risk.
The Russian securities market, due to the objective circumstances of its exaggerated rapid growth in an incompletely reformed economy, which distinguishes it from many other markets, is extremely risky.
Entities operating in the securities market, both investors and professionals, should be aware of the types of risks they face in the securities market.
2. The role and place of the securities market in a reformed economy
As a result of deep institutional reforms, Russia has made significant progress in the formation of a market-type economy and the creation of the main elements of a 3-tier system of its financing:
1. budget financing;
2. bank loans;
3. direct investment through the capital market mechanism.
From the point of view of mobilizing free financial resources, the government securities market and the securities market of commercial banks, as well as the market for securities and securities surrogates issued by newly created companies, including unlicensed financial companies that attracted funds from the population, developed most rapidly.
At the present stage of economic development, the main prerequisites for the direct entry of enterprises to the capital market in order to attract investment resources through the issuance of securities have developed: there is a huge demand for capital from enterprises and at the same time, demand for corporate paper is growing.
The result of economic reforms was the rapid redistribution of income, previously received by the state budget, in favor of enterprises, and from enterprises to the population. Such a redistribution of income was an inevitable consequence of the democratization of economic life, but it took place in the context of an underdeveloped system of incentives for investment and a system of market formation and distribution of investment resources, although the share of savings in the income of both individuals and legal entities remained high. However, these savings were transformed mainly into such types of financial assets that are not related to the financing of production: into cash (population, growth of hidden foreign assets of legal entities, capital flight),
From the point of view of the territorial redistribution of financial resources, the development of the government securities market and the issuance of securities by banks contributed to the strengthening of the concentration of financial resources in Moscow and several other major financial centers.
The sphere where you can accumulate capital or receive it is the financial sphere of activity. The main markets dominated by financial relations are:
Bank capital market
· currency market
· market of insurance and pension funds;
It is necessary to distinguish between markets where you can only invest capital, or primary markets, and financial markets proper, where these capitals are accumulated, concentrated, centralized and invested in primary markets. Financial markets (capital markets) are intermediary markets between the primary owners of funds and their end users.
Since not all securities originate from money capital, the securities market cannot be fully classified as a financial market. To the extent that the securities market is based on money as capital, it is called the stock market and, as such, forms part of the financial market. The stock market forms a large part of the securities market. The remaining part of the securities market, due to its small size, has not received a special name, therefore, the concepts of the securities market and the stock market are considered synonymous.
The place of the securities market can be assessed from two positions:
1. in terms of the volume of funds raised from various sources;
2. in terms of investing free cash in any market.
Attraction of funds can be carried out at the expense of internal and external sources. Internal sources include depreciation and profits. The main external sources are bank loans and funds received from the issuance of securities. In society, internal sources predominate, because external ones are the result of a redistribution of the former.
Free cash can be used for profitable investment in many areas: in production and economic activities (industry, construction, trade, communications), in real estate, antiques, works of art. Cash can be invested in foreign currency if the domestic depreciates, securities of various types are loaned or placed at interest on a bank deposit. The securities market is one of many areas for the application of free capital, and therefore it has to compete to attract them.
Funds between the listed capital investment markets occur depending on many factors, the main of which are:
The level of profitability of the market
level of market taxation
Level of risk of loss of capital or shortfall in expected income
organization of the market, the ability to quickly enter and exit the market, the level of market awareness.
The securities market has a number of functions that can be divided into two groups:
1. General market functions inherent in each market:
a commercial function, i.e. the function of making a profit from operations in this market;
the price function, i.e. the market ensures the process of folding market prices, their constant movement;
information function, i.e. the market produces and communicates to its participants market information about the objects of trade and its participants;
Regulatory function, i.e. the market creates the rules for trading and participation in it, the procedure for resolving disputes between participants, establishes priorities, control or management bodies;
2. Specific functions of the securities market that distinguish it from other markets:
redistributive function;
a) redistribution of funds between industries and areas of market activity;
b) transfer of savings, primarily of the population, from an unproductive to a productive form;
c) financing the state budget deficit on a non-inflationary basis, i.e. without issuing additional funds into circulation.
· the function of insurance of price and financial risks, became possible due to the emergence of a class of derivative securities: futures and auction contracts.
One of the main functions of the securities market is to mobilize investors' funds for the purpose of organizing and expanding production. The existence of the securities market contributes to the formation of an efficient and rational economy.
3. Regulation of the securities market
Any human activity at this stage of the development of society must be regulated, and the securities market is no exception. The Law "On the Securities Market" provides for both the regulation of activities by state bodies and special organizations operating in the securities market.
To begin with, it is necessary to highlight the system of regulation of the securities market - the so-called regulatory infrastructure of the market, at the moment this system includes:
state regulatory bodies;
self-regulatory organizations;
· Legislative norms of the securities market;
Ethics, traditions and customs of the market.
The regulation of the securities market is the streamlining of the activities on it of all its participants and transactions between them by organizations authorized by the company for these actions.
The regulation of the securities market covers all types of activities and all types of operations on it, is carried out by bodies or organizations authorized to perform regulatory functions.
Distinguish:
1. state regulation of the market, carried out by state bodies;
2. regulation by professional participants in the securities market, or self-regulation of the market;
3. public regulation or regulation through public opinion.
Regulation of the securities market usually has the following objectives:
ü maintaining order in the market, creating normal conditions for the work of all market participants;
ü protection of market participants from dishonesty and fraud of individuals or organizations from criminal organizations;
ü ensuring a free and open pricing process for securities based on supply and demand;
ü creation of an efficient market, where there are always incentives for entrepreneurial activity and where every risk is adequately rewarded;
ü in certain cases, the creation of new markets, support for the markets and market structures necessary for society, market initiatives and innovations, etc.;
ü impact on the market in order to achieve some social goals (for example, to increase the rate of economic growth, reduce unemployment, etc.).
The specific goals of regulation of the securities market are always determined by the current economic and budgetary policy, the state of economic growth and a number of other factors.
The process of regulation of the securities market includes:
1. creation of a regulatory framework for the functioning of the market;
2. selection of professional market participants;
3. control over the observance by all market participants of the norms and rules of the market functioning;
4. a system of sanctions for evading norms and rules.
- separation of approaches in regulating relations between the issuer and investor, on the one hand, and relations with the participation of professional market participants, on the other;
– selection of those securities that need careful regulation in the first place;
– Ensuring competition between market participants;
– Ensuring the transparency of rule-making;
– observance of the continuity of the Russian system of regulation of the securities market and taking into account the experience of the world market.
State regulation of the securities market
The peculiarity of the securities market is that the values circulating on it represent a set of rights and do not exist in isolation from the regulatory legal framework and law enforcement system provided by the state. Thus, the state performs a system-forming function, which will continuously change in accordance with the tasks facing it to ensure national interests.
The state creates a system of market regulation and ensures its functioning. The development of the law enforcement system as one of the key elements of the system-forming function of the state will be a priority direction of state policy.
The state acts as the largest borrower in the securities market and has a direct impact on its quantitative and qualitative characteristics.
The state is the largest holder of securities of Russian enterprises and is the largest seller in the corporate securities market.
The state performs a number of important functions in the securities market, among them the following main ones can be distinguished:
1. development of a program and strategy for the development of the securities market, monitoring and regulation of the implementation of this program, development of legislative acts for the implementation of the strategy;
2. setting requirements for participants in the market process, setting various standards;
3. controlling financial security and market stability, supervising the implementation of security orders;
4. ensuring that all investors, without exception, are informed about the state of the market;
5. formation of state insurance systems in the securities market;
6. control and prevention of excessive investment in government securities;
To date, two models of state regulation of the securities market are known, the first implies that the state controls and intervenes as actively as possible in the regulatory process in the market, and only a small part is transferred to self-regulatory organizations. The second model is directly opposite to the first - the role of the state in regulation is minimal and the main share of regulation belongs to market participants. In most countries of the world, the state is moving in the middle between these two extreme models.
The concept of the development of the securities market in the Russian Federation highlights the following key principles of state policy in the securities market:
a) the state, performing a universal function to protect citizens, their legitimate rights and interests, takes measures to protect the rights of participants in the securities market on the basis of licensing and regulation of all types of professional activities in this market.
b) the principle of unity of the regulatory legal framework, regime and methods of market regulation throughout the territory of the Russian Federation;
c) the principle of minimum state intervention and maximum self-regulation, based on minimizing costs from the federal budget, refusing to impose centralized decisions, publicity of rule-making and the obligatory participation of professional market participants in regulation;
d) the principle of equal opportunities, meaning:
- stimulation by the state of competition in the securities market through the lack of preferences for its individual participants;
- equality of all market participants before the bodies that regulate it;
– public and competitive distribution of state support for various projects on the market;
- lack of advantages for state-owned enterprises operating in the market over commercial ones;
– prohibition of state bodies to give public assessments of professional market participants;
– refusal of state regulation of prices for the services of professional market participants (except for registrar companies).
e) the principle of continuity of state policy in the securities market, meaning the consistency of state policy and its commitment to the emerging Russian model of the securities market;
f) the principle of focusing on world experience and taking into account the trend of globalization of financial markets, as well as the development of a balanced policy in relation to foreign investors and foreign participants in the Russian securities market.
The main principles of state regulation of the securities market include:
ü functional regulation in combination with institutional regulation on the organization of control and supervision over the activities of professional market participants;
ü the use of market self-regulation mechanisms created with the help of the state and under its control;
ü distribution of powers to regulate the market between the Russian Federation and the constituent entities of the Russian Federation, as well as various executive authorities;
ü priority in protecting small investors and the population, all forms of collective investment in the development of the market regulation system;
ü priority in the development of infrastructure organizations;
ü maximum reduction and sharing of risks;
support for competition in the market;
ü prevention or partial elimination of conflicts of interest on the basis of regulation of issues of combining types of professional activity.
The form of expression of state regulation of the securities market, first of all, is the legal acts through which regulation is carried out. The area of legislation is much more easily influenced by the state than other components of the securities market. Therefore, with the help of reasonable laws, it is possible to provide the strongest impact in order to accelerate the process of establishing the stock market.
The main problems in this area do not lie in the very fact of regulation, but in the specific ways and forms in which it should be implemented. In addition, given that our state itself is a major shareholder, it is necessary to have a mechanism for public (independent) control and regulation of the securities market.
To date, there are about 1000 legislative and regulatory documents regulating various aspects of the activities of its participants. The main legislative acts that regulate the Russian securities market:
Ø Civil Code of the Russian Federation, parts I and II
Ø Law “On banks and banking activity”
Ø Law “On the Central Bank of the Russian Federation”
Ø Law “On Commodity Exchanges and Exchange Trade”
Ø Law “On currency regulation and currency control”
Ø Law “On the state internal debt of the Russian Federation”
Ø Law “On Joint Stock Companies”
Ø Law “On the Securities Market”
Ø Decrees of the President on the development of the securities market, etc.
However, existing documents often do not complement, but contradict and even mutually exclude each other. At the moment, the above-mentioned Concept is the document that determines the direction of activities for the regulation of the securities market. According to it, the national interests of Russia determine the main goals of state policy in the securities market. These include:
Creation and maintenance of effective functioning of mechanisms for attracting investments in the private sector of the Russian economy, and, above all, in privatized enterprises;
Financing the federal budget deficit on the basis of non-inflationary financing methods related to the securities market for specific long-term projects;
Creation of reliable mechanisms and financial instruments for investing the population's funds;
Restructuring the management system of privatized enterprises and creating the institution of an "effective owner", increasing the disciplining effect of the securities market on the administrations of Russian companies;
Prevention of social explosions and conflicts that may arise as a result of operations in the securities market, by protecting the rights of participants in the securities market, and primarily the rights of investors;
Creation of a civilized securities market in Russia and its integration into the global financial market, ensuring an independent place for the Russian market in the system of international capital markets;
The fight against securities surrogates and fraud, the suppression of illegal activities in the securities market.
In the strategic plan, these goals are complementary and should be implemented through a single set of measures coordinated by government agencies and professional market participants.
The state can carry out the so-called direct management of the securities market, which consists in the development of norms and rules and control over their implementation.
In addition, the state also exercises indirect or economic management of the RZB through the taxation system, monetary policy, state capital and state property and resources.
At the moment, the indirect regulation of the RZB is predominant, namely:
Ø control over the money supply in circulation and the volume of loans provided by influencing loan interest rates;
Ø changes in taxation and terms of depreciation;
Ø government guarantees (for deposits, loans, private sector loans, etc.);
Ø foreign economic (operations with foreign currency, gold, measures to stimulate exports, currency restrictions, etc.) and foreign policy activities (development or curtailment of political contacts that affect foreign trade and economic relations, military operations, etc.).
The structure of state regulatory bodies of the Russian securities market has not yet been formed. The regulation of the securities market at the state level is carried out by:
1. The highest bodies of state power:
a) the State Duma (makes laws regulating the RZB);
b) President (issues decrees);
c) The government (issues resolutions, usually in development of presidential decrees).
2. State regulatory bodies of the RZB at the ministerial level:
a) the Ministry of Finance of the Russian Federation (registers issues of securities of corporations, subjects of the federation and local governments, licenses stock exchanges, investment companies and funds, issues government securities and regulates their circulation);
b) the Central Bank of the Russian Federation (registers issues of securities of credit institutions, carries out operations and regulates the procedure for conducting operations by credit institutions on an open securities market, establishes and controls antimonopoly requirements for transactions on the securities market, etc.);
c) the State Committee for Antimonopoly Policy (establishes antimonopoly rules and exercises control over their implementation);
d) Gosstrakhnadzor (regulates the specifics of activities in the securities market of insurance companies);
e) The Federal Commission for the Securities Market (responsible for licensing the activities of registrars and regulating their activities. In the future, it could take over the main rule-making and control work on the regulation of the securities market).
Conclusion
market valuable regulation infrastructure
The Russian securities market is not a new phenomenon, although a significant gap has put the country in a new position, and the use of past experience in this situation is significantly complicated. But history shows that state bodies were key "figures" in the regulation of the securities market and therefore, in my opinion, the departure from this model in modern practice is ineffective, although such a point of view exists.
The formation of the modern securities market has passed, as in the whole world with a large percentage of the so-called financial pyramids, but due to such factors as the low level of legal literacy of the population, the sharp transition of the state to the rails of market relations, and some others, has led to the emergence of a huge number of financial pyramids, and their collapse to the distrust of the population in securities as a form of investment.
This situation has arisen due to the following reasons:
§ weak state regulation of the securities market (delay in the regulatory framework, high level of corruption, weak punishment of offenders in the securities market, lack of a concept for the development of the securities market as the main guideline of state policy in this area, political instability);
§ information closeness of the market, which entails market instability, mistrust;
§ territorial and financial and sectoral deformation, which is still a common fact in Russia today;
§ a large number of non-residents in the market, which for the most part are not strategic, but speculative participants in the market.
These problems, first of all, need to be solved by state bodies at the moment in order to restore public confidence in the securities market, creating favorable and, most importantly, reliable conditions for investing in securities. This is possible through strengthening the rules of responsibility for offenses in the securities market, increasing the control functions of regulatory state bodies, in particular the Federal Securities Commission of Russia, establishing tax and other benefits when investing in securities, as well as other measures.
If state bodies really become the real power in the country, then our country can hope for further development in all sectors of life. Still, Russia is a country with great potential and it must take its rightful place in the world.
Bibliography
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