Regulation of the securities market in the Russian Federation. Principles and forms of regulation of the securities market Scheme of bodies of state regulation of the securities market
Introduction
Conclusion
Introduction
Why is it necessary to regulate the securities market and the activities of its participants? And is it even necessary?
Naturally, it is necessary, first of all, in order to regulate and monitor the processes that take place in the market, maintain order and create optimal conditions for the work of all market participants, as well as protect all actors from dishonesty and fraud of individual market participants.
Who regulates the securities market? By what laws is this regulation carried out?
These and many other questions will be answered below.
1. The concept and goals of regulation
The regulation of the securities market (r. c. b.) is the streamlining of the activities on it of all its participants and transactions between them by organizations authorized by society for these actions.
River regulation. c. b. covers all its members:
- issuers;
- investors;
- professional fund intermediaries;
- market infrastructure organizations…
Regulation of market participants can be external and internal.
External regulation is the subordination of the activity of this organization to the normative acts of the state, other organizations, international agreements.
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.
River regulation. c. b. covers all types of activities and all types of operations on it:
- emission;
- intermediary;
- investment;
- speculative;
- collateral;
- trust, etc.
River regulation. c. b. carried out by bodies or organizations authorized to perform regulatory functions. From these positions, there are:
- state regulation of the market, carried out by state bodies whose competence includes the performance of certain regulatory functions;
- regulation by professional participants r. c. b., 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 organizations of professional participants authorized or selected by it. c. b. 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;
- creating 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. ;
- impact on 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 place the functioning of the market on a generally recognized and observed basis by all;
- selection of professional market participants; modern r. c. b., 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 can be: oral and written warnings, fines, criminal penalties, exclusion from the ranks of market participants.
2. Principles of regulation of the securities market
Principles of regulation of the Russian river. c. b. largely depend on the political and economic conditions existing in the country, but at the same time they must reflect the time-tested historical practice of the world r. c. b.
Basic principles:
1. 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. 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; 2. Isolation from all types of c. b. so-called investment, i.e. those that are mass-produced, in series (tranches) and can quickly spread and the market of 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; 3. 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; 4. 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 bodies – the rules do not mention specific names or brand names; 5. When separating powers between regulatory bodies, it should be assumed that rule-making and law enforcement should not be combined by one person; 6. 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; 7. Compliance with the principle of continuity of the Russian system of regulation of the river. c. b., having 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 system of market regulation "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. One should not make dogmas out of this experience, because repeating the mistakes of others can slow down progress in market regulation; 8. Optimal distribution of control functions r. c. b. between state and non-state authorities (commercial organizations, public organizations) .
3. State regulation of the Russian securities market
State on the Russian river. c. b. 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 river. c. b. This 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 public administration of the market
Direct or administrative, management of the river. c. b. on the part of the state is carried out by:
- establishing mandatory requirements for all participants r. c. b. ;
- registration of market participants and securities issued by them;
- licensing of professional activities on the river. c. b. ;
- ensuring transparency and equal awareness of all market participants;
- maintaining law and order in the market.
Indirect, or economic, management of the river. c. b. carried out by the state through economic levers and capital 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 was composed of: The highest bodies of state power:
The State Duma issues laws regulating the river. c. b.
The President issues decrees, since laws are adopted rather slowly and the development of the river. c. b. in Russia it is carried out mainly in accordance with these decrees; their main goal is to implement and accelerate the process of privatization and economic reform;
Government - issues decrees, usually in follow-up to presidential decrees.
State regulatory authorities r. c. b. ministerial level: Federal Commission for the river. c. b. (FCSM); Ministry of Finance of the Russian Federation (MinFin); Central Bank of the Russian Federation (CB); State Committee for Antimonopoly Policy; Gosstrakhnadzor.
The FCSM has many powers in the areas of coordination, development of standards, licensing, qualification requirements, etc. in reality, so far it is only engaged in licensing the activities of registrars and regulating their activities, and is also completing the development of a system for regulating mutual investment funds - a type of collective investment funds. As the organizational structure is created, it can take on the main rule-making and control work on the regulation of the river. c. b.
The Ministry of Finance of the Russian Federation - a ministry within the Government - registers issues of c. b. corporations (except for credit organizations), subjects of the federation and local governments, licenses stock exchanges, investment companies, investment funds, establishes rules for accounting for transactions with c. b., carries out the release of state c. b. and regulate their circulation.
The Central Bank of the Russian Federation is a federal body acting on the basis of the law, registers issues of c. b. credit institutions, carries out operations and regulates the procedure for the implementation of operations by credit institutions on the open river. c. b., Lombard lending and rediscount of bills, establishes and controls antitrust requirements for operations on the river. c. b. credit institutions and organizations making non-cash payments for transactions with ts. b. (including depositories), 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 features of activities on the river. c. b. insurance companies.
The main legislative acts that regulate the Russian river. c. b.:
- Civil Code of the Russian Federation, parts I and II (1995 - 1996);
- Law "On banks and banking activity" (1990);
- Law "On the Central Bank of the Russian Federation" (1995);
- Law "On Privatization of State and Municipal Enterprises in the RSFSR" (1991);
- Law on Commodity Exchanges and Exchange Trade (1992)
- Law "On currency regulation and currency control" (1992);
- Law "On the state internal 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.
4. Self-regulatory organizations of the securities market
Self-regulatory organizations are non-profit, non-governmental organizations created by professional participants of the river. c. b. on a voluntary basis, in order to regulate certain aspects of the market on the basis of state guarantees of support, expressed in granting them the state status of a self-regulatory organization.
The number and direction of self-regulatory organizations should be established by the state, since the same subject of self-regulation cannot be regulated by two or more similar bodies at once.
Rights of a self-regulatory organization:
- development of binding rules and standards for professional activity and market operations;
- the implementation of professional training of personnel, the establishment of requirements that are mandatory for work in this market;
- control over compliance by market participants with established rules and regulations;
- information activity in the market;
- ensuring communication and representation (protection) of the interests of the participants.
Prior to the adoption of the Law on the Securities Market, in Russian practice there was no legal basis for self-regulatory organizations, however, various types of associations of market participants were in the form of associations (unions) of stock exchanges, registrars and depositories, and other professional participants in the Russian stock market.
Conclusion
River regulation. c. b. - streamlining the activities on it of all its participants and operations between them by organizations authorized by society for these actions.
Regulation covers all market participants. is internal and external. Has 6 main goals.
There are also 8 principles of regulation of the Russian securities market, which reflect the time-tested historical practice of the global securities market.
Perhaps state regulation of the Russian securities market. But the structure of state regulation of the securities market has not yet developed.
There are also legislative acts that regulate the Russian securities market:
- Civil Code of the Russian Federation;
- 8 laws;
- Decrees of the President on the development of the securities market;
- Decrees of the Government of the Russian Federation.
Bibliography
- Securities Market: Textbook / Ed. V. A. Galanova, A. I. Basova. - M.: Finance and statistics, 2000. - 352 p.: ill.
- Law of the Russian Federation "On the securities market", Art. 2.
- Mirkin Ya. M. "Securities and stock market". Moscow, "Perspective", 1995
- Serebryakova L. A. "World Experience in the Regulation of the Securities Market", Finance. - 1996, N1.
The securities market plays an important role in the system of redistribution of financial resources of the state and is necessary for its normal functioning. Therefore, an important task of the state is to regulate the securities market.
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. It is the most important component of the securities market.
Regulation of the securities market:
- covers all its participants (issuers, investors, professional intermediaries, market infrastructure organizations);
- covers all types of activities and all types of operations on it (issuing, intermediary, investment, speculative, mortgage, trust, etc.);
- carried out by bodies or organizations authorized to perform regulatory functions.
In world practice, the following two models of regulation of the securities market are distinguished:
- The regulation of the stock market is the predominant function of state bodies. Only a small part of the powers of supervision, control, setting rules, the state transfers to associations of professional participants in the securities market. Such a system exists in France. The state controls and intervenes as actively as possible in the regulatory process on the market, and only a small part is transferred to self-regulatory organizations (SROs).
- While maintaining the main control positions for the state, the maximum possible amount of authority is transferred to self-regulatory organizations; a significant place in control is occupied not by strict regulations, but by established traditions, a system of agreements and negotiations. This system has developed in the UK. 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 follows the middle path between these two extreme models. A general trend in the world practice of regulating the securities market is the creation of independent departments or securities commissions. Among more than 30 countries with developed markets, more than 50% have independent securities authorities, in about 15% of countries market regulation is carried out by ministries of finance, and in 15% of countries there is mixed management. In some countries with a banking market model (Germany, Austria, Belgium), the main responsibility for the development of the stock market lies with the central bank and the banking supervisory authority. Switzerland is an exception: it does not have a centralized state body that regulates the securities market (these functions have been transferred to the regions).
Russia is characterized to a large extent by the American model of organization and regulation of the financial market, this is especially evident at the legislative and organizational level. Russian practice has adopted a multiple model of self-regulation, when there can be many SROs tied to specific markets (MICEX-NFA, RTS-NAUFOR).
The process of regulating the securities market includes the following:
- Creation of a regulatory and legislative framework for the functioning of the market, i.e., the development of laws, regulations, instructions, rules, methodological provisions and other regulations that put the functioning of the market on a generally recognized and respected basis.
- Selection, licensing and certification of professional market participants. Professional participants in the securities market must meet certain knowledge, experience and capital requirements set by authorized regulatory bodies or organizations.
- Control over compliance by all market participants with the norms and rules of the market functioning, which is carried out by the relevant control bodies.
- The system of sanctions for evading the norms and rules established on the exchange. Such sanctions may be oral or written warnings, fines, criminal penalties, expulsion from the exchange members, etc.
- Monitoring compliance with antitrust laws.
There are four main forms of regulation of the securities market:
- State regulation based on legislation and taxation norms; state regulation of exchange activity, which is carried out by state bodies whose competence includes the performance of certain regulatory functions.
- Exchange regulation, based on the rules of operation of stock exchanges (futures exchanges, stock departments of commodity and currency exchanges).
- Self-regulation through the activities of various associations of stock market professionals. There are two options here. 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 exchange market. On the other hand, the latter can themselves agree that the organization created by them receives from them some rights of regulation in relation to all the founders or participants of this exchange or all exchanges.
- Public regulation, or regulation through public opinion through the media. The fact is that it is the reaction of society as a whole to some actions on the exchange market that is the root cause for which certain regulatory actions begin on the part of the state or market professionals.
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.
- Ensuring that participants comply with the law when carrying out transactions with securities.
- Protection of market participants from dishonesty and fraud of individuals or organizations, from criminal organizations and criminals in general.
- Ensuring a free and open pricing process for securities based on the concentration of supply and demand.
- Creation of an efficient market in which there are always incentives for entrepreneurial activity and in which every risk is adequately rewarded.
- Creation of new markets, support of markets and market structures necessary for society, market innovations, etc.
- Impact on the market in order to achieve some public goals (for example, to increase the rate of economic growth, reduce unemployment, etc.).
Thus, the main goal of regulation of the securities market is to ensure its stability, balance and efficiency.
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 main principles of regulation of the securities market are as follows.
1. Separation of approaches to regulation in relation to over-the-counter market participants, on the one hand, and to professional participants in the exchange market, on the other; separation of approaches in regulating relations between the issuer and investor, on the one hand, and relations involving professional market participants, on the other.
2. The maximum possible disclosure of information about everything that is done on the exchange market. Thus, not only is it possible for market participants to obtain the information necessary for making business decisions, but the degree of trust in the exchange and its members increases.
3. Ensuring publicity of rule-making, public discussion of market problems.
4. Prevention of the combination of rule-making and rule-application in one body of management or regulation.
5. Isolation of those securities that need careful regulation in the first place (for example, investment securities).
6. The principle of continuity of the Russian system of regulation of the securities market.
7. The principle of taking into account the experience of the world market and taking into account the trends in the globalization of financial markets, as well as the principle that implies
development of a balanced policy in relation to foreign investors and foreign participants in the Russian securities market.
8. The principle of protecting the rights of owners and monitoring the observance of their rights and interests by issuers and professional participants in the securities market.
9. The principle of unity of the regulatory framework, regime and methods of market regulation throughout the Russian Federation.
10. The principle of minimal government intervention and maximum self-regulation based on minimizing costs from the federal budget; obligatory participation of professional market participants in regulation.
11. The principle of equal opportunities, including:
- stimulation by the state of competition in the securities market through the lack of preferences for its individual participants;
- ensuring competition between market participants as a mechanism for objectively improving the quality of services and reducing their cost;
- 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 organizations;
- 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).
There are the following methods of regulation of the securities market:
- registration of issues of securities, issue prospectuses;
- licensing of professional participants in the securities market;
- certification of specialists of investment institutions;
- investor insurance;
- audit and rating control over the financial condition of issuers;
- supervision and control over stock transactions;
- registration and supervision of the activities of exchange and clearing corporations;
- disclosure and publication of information in accordance with applicable law.
5.1. Essence, goals and principles of regulation of the Russian securities market
The securities market plays an important role in the system of redistribution of financial resources of the state and is necessary for its normal functioning. Therefore, the regulation of the securities market is an important task of the state.
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. It is the most important component of the securities market.
Regulation of the securities market:
* covers all its participants (issuers, investors, professionals)
regional intermediaries, market infrastructure organizations);
* covers all activities and all types of operations on it
(issue, intermediary, investment, speculative,
mortgage, trust, etc.);
* carried out by bodies or organizations authorized
perform regulatory functions.
In world practice, there are two models of regulation of the securities market:
1. Regulation of the stock market is the predominant function of state bodies. Only a small part of the powers of supervision, control, establishment of rules, the state transfers to associations of professional participants in the securities market. Such a system of regulation has developed in France. The state controls and intervenes as actively as possible in the regulatory process on the market, and only a small part is transferred to self-regulatory organizations (SROs).
5.1. Essence, goals and principles of regulation of the Russian market __ 199
2. While the state retains the main control positions, the maximum possible amount of authority is transferred to self-regulatory organizations, while a significant place in control is occupied not by strict regulations, but by established traditions, a system of approvals and negotiations. This system has developed in Great Britain. 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 follows a path that is in the middle between these two extreme models.
The general trend in the world practice of regulation of the securities market is the creation of independent ledgers or commissions on securities. Among more than 30 countries with developed markets, more than 50% have independent securities offices, in about 15% of countries the market is regulated by the ministries of finance, in 15% of countries there is mixed management. In some countries with a banking market model (Germany, Austria, Belgium), the main responsibility for the development of the stock market lies with the central bank and the banking supervisory authority. Switzerland is an exception, it does not have a centralized state body that regulates the securities market (these functions have been transferred to the regions).
Russia is characterized to a large extent by the American model of organization and regulation of the financial market, this is especially evident at the legislative and organizational levels. Russian practice has adopted a multiple model of self-regulation, when there can be many SROs tied to specific markets (MICEX-NFA, RTS-NAUFOR).
The process of regulation of the securities market includes:
* creation of a regulatory and legislative framework for the functioning
market, i.e., the development of laws, regulations, instructions, rights
pitchfork, methodological provisions and other normative acts, which
ry put the functioning of the market on a generally recognized and universal
respected basis;
* selection, licensing and certification of professional participants
nickname of the market. Professional participants of the securities market
must meet certain knowledge requirements,
experience and capital established by those authorized to do so
regulatory authorities or organizations;
» control over the observance by all market participants of the norms and rules of the market functioning, which is carried out by the relevant control bodies;
Chapter 5. Regulation of the securities market
“a system of sanctions for evading the norms and rules established by the exchange. Such sanctions may be oral or written warnings, sh graphs, criminal penalties, exclusion from members of the exchange, etc.;
* Control over observance of the antimonopoly legislation.
There are four main forms of regulation of the securities market (Figure 5.1.1):
1 government regulation, based on legislation and taxation norms; state regulation of exchange activities, which is carried out by state bodies whose competence includes the performance of certain regulatory functions.
2. exchange regulation, rules-based fund
output exchanges (futures exchanges, stock departments of commodities and
fierce exchanges).
3. self-regulation, carried out through the activities of different
ny associations of stock market professionals. Here are possible
two options. On the one hand, the state can transfer part
of their market regulation functions by an authorized or
organizations of professional participants in the stock exchange
th market. On the other hand, the latter can themselves agree
about the fact that the organization they created receives from them some
regulatory rights in relation to all founders or participants
nicknames of this exchange or all exchanges.
4. Public regulation or regulation through public
new opinion through the media. Because
it is the reaction of society as a whole to some actions on the stock exchange
in the market is the root cause for which those or
other regulatory actions on the part of the state or professional
market sions.
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;
* Ensuring that the participants comply with the legislation when
the occurrence of transactions with securities;
* protection of market participants from dishonesty and fraud
individuals or organizations, from criminal organizations and pre
feet in general;
Rice. 5.1.1. Forms of regulation of the securities market
* Ensuring a free and open pricing process for
securities based on the concentration of supply and demand;
» creating an efficient market where there are always incentives for entrepreneurship and where every risk is adequately rewarded;
* creation of new markets, support of the markets necessary for society
kov and market structures, market innovations, etc.;
* impact on the market in order to achieve some public
other purposes (for example, to increase the growth rate of the economy,
reducing the unemployment rate, etc.).
Thus, the main goal of regulation of the securities market is to ensure its stability, balance and efficiency.
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 main principles of regulation of the securities market are:
* separation of approaches to regulation in relation to over-the-counter
market participant, on the one hand, and to professional
stock exchange market participants - on the other; division of approaches in regu
management of relations between the issuer and the investor, on the one hand
parties, and relationships involving professional participants
market - on the other;
* the maximum possible disclosure of information about everything that de
barking in the stock market. This achieves not only
the possibility for market participants to obtain the information necessary
mine for making business decisions, but the degree of trust increases
to the exchange and its members;
* Ensuring transparency of rule-making, public discussion
market problems;
202________________________ Chapter 5. Regulation of the securities market
* avoiding the combination of rule-making and law enforcement
in one body of management or regulation;
f allocation of those securities that are primarily in need of careful regulation (for example, investment securities);
» principles of continuity of the Russian system of regulation of the securities market;
* the principle of taking into account the experience of the world market and taking into account global trends
financial markets, as well as involving the development
balanced policy towards foreign investors and
foreign participants in the Russian securities market;
» the principle of protecting the rights of owners and monitoring the observance of their rights and interests by issuers and professional participants in the securities market;
* the principle of unity of the regulatory framework, regime and methods of regulation
market development throughout the Russian Federation;
* the principle of minimum government intervention and maximum
small self-regulation based on minimizing
costs from the federal budget, mandatory participation of professional
local market participants in regulation;
» the principle of equal opportunity, including:
State stimulation of competition in the securities market
securities through the lack of preferences for its individual participants
nicknames;
Ensuring competition between market participants like fur
nism objectively improve the quality of services and reduce their
cost;
Equality of all market participants before the bodies responsible for
those who regulate it;
Public and competitive distribution of state support
ki different projects on the market;
Lack of benefits for state-owned enterprises, functions
positioning on the market, in front of commercial organizations;
The prohibition of state bodies to give public assessments of
professional market participants;
Refusal of state regulation of prices for professional services
local market participants (except for companies-registrar
bodies).
5.2. State regulation of the Russian securities market 203
There are the following regulation methods securities market:
* registration of issues of securities, issue prospectuses;
* licensing of professional participants in the securities market;
* attestation of specialists of investment institutions;
* investor insurance;
* Supervision and control over stock transactions;
» registration and supervision of the activities of exchange and clearing corporations;
* disclosure and publication of information in accordance with the current
common legislation.
5.2. State regulation of the Russian securities market
The system of state regulation of the securities market includes: 1) state and other regulations; 2) regulatory and control bodies. It includes the following main areas (Fig. 5.2.1).
The main principles of state regulation are: Functional regulation in combination with institutional regulation on the organization of control and supervision over the activities of professional market participants;
* use of market self-regulation mechanisms, creating
with the help of the state and under its control;
* distribution of powers to regulate the market between the Russian Federation and
subjects of the Russian Federation, as well as various executive bodies
authorities;
* priority in the protection of small investors and the public, of all forms
collective investment in the development of the regulatory system
market;
* priority in the development of the system of infrastructure organizations;
* maximum reduction and sharing of risks;
* support for competition in the market;
* prevention or partial elimination of conflicts of interest on
new regulation of issues of combining types of professional
noah activity.
Rice. 5.2.1. State regulation of the securities market
5.2. State regulation of the Russian securities market 205
The role of the state in the regulation of the Russian securities market is as follows:
* implementation of ideological and legislative functions (you
working out the concept of market development, the program for its implementation,
program management, creation of legislative acts for the
market development);
* concentration of resources (public and private) for the purpose of
infrastructure buildings;
* establishing requirements for participants in operational and accounting
standards;
» control of financial stability and market security (registration and control of entry to the market, registration of securities, supervision of the financial condition of investment institutions, taking measures to improve them, control of compliance with legal and ethical standards, application of sanctions);
* creation of a system of information on the state of the securities market and
ensuring its openness to investors;
* formation of a system to protect investors from losses (including
including public or mixed insurance schemes
messages);
* prevention of negative impact on the stock market other
some types of state regulation (monetary, foreign exchange
th, fiscal, tax);
» prevention of excessive development of the government securities market, diverting a part of the money supply of investment and investment resources to cover non-production expenses of the state.
According to Art. 38 of the Law "On the Securities Market", state regulation of the securities market is carried out by:
* establishing mandatory requirements for the activities of the issuer
comrades, professional participants in the securities market and its
darts;
» state registration of an issue (additional issue) of emissive securities and securities prospectuses and monitoring compliance by issuers with the conditions and obligations stipulated
1 wound in them;
* licensing the activities of professional market participants
ka securities;
206________________________ Chapter 5. Regulation of the securities market
* creating a system for protecting the rights of owners and monitoring compliance
their rights by issuers and professional market participants
ka securities;
* prohibition and suppression of the activities of persons engaged in
entrepreneurial activity in the securities market without
the relevant license.
Representative bodies of state power and bodies of local self-government set limits on the issue of securities issued by authorities of the corresponding level. -
Regulation of the securities market at the state level is carried out by:
1) the highest authorities:
Federal Assembly considers and approves laws, re
guiding the securities market;
The president issues decrees;
Government issues decrees, usually in follow-up
decrees of the President;
2) state bodies regulating the securities market mi
Nyster level.
Federal Executive Authority for the Securities Market is a federal executive body for the implementation of state policy in the field of the securities market, control of the activities of professional participants in the securities market through determining the procedure for their activities and determining the standards for issuing securities.
The main functions and powers of the federal executive body for the securities market are defined by the Federal Law "On the Securities Market" in Art. 42.
The federal executive body for the securities market:
* carries out the development of the main directions of market development
securities and coordination of activities of federal bodies
executive authority for the regulation of the securities market
papers;
* approves the standards for issuing securities, prospectuses
issuers, including foreign issuers, carry out
those who issue securities on the territory of the Russian Federation, and
procedure for state registration of an issue (additional
issue) issuance securities, state registration
5.2. State regulation of the Russian securities market 207
reports on the results of the issue (additional issue) of emissive securities and registration of securities prospectuses; » develops and approves uniform requirements for the rules for carrying out professional activities with securities;
* establishes mandatory requirements for transactions with securities
securities, the norms for admission of securities to their public placement-"
niyu, circulation, quotation and listing, settlement and depositary
noah activity. Rules for keeping records and reporting
sti issuers and professional participants in the securities market
securities are established by the federal executive body
authorities for the securities market together with the Ministry of Finance
nans of the Russian Federation;
» establishes mandatory requirements for the procedure for maintaining the register;
* Establishes procedures and licenses various
ny types of professional activity in the securities market
magician, as well as suspends or cancels the said licenses
zia in case of violation of the requirements of the legislation of the Russian
Securities Federation;
* issues general licenses for the implementation of activities for
licensing the activities of professional participants
securities market, as well as suspends or cancels
said licenses;
* establishes procedures, licenses and maintains a register
self-regulatory organizations of professional market participants
securities and revokes said licenses in case of violation
requirements of the legislation of the Russian Federation on securities
magicians, as well as standards and requirements approved by the federal
the executive authority for the securities market;
* defines the performance standards of investment, non-governmental
gift pension, insurance funds and their managers
companies, as well as insurance companies in the securities market;
» monitors compliance by issuers, professional participants in the securities market, self-regulatory organizations of professional participants in the securities market with the requirements of the legislation of the Russian Federation on securities, standards and requirements approved by the federal executive body for the securities market;
» controls the procedure for conducting transactions with cash or other property performed by professional
208________________________ Chapter 5. Regulation of the securities market
participants in the securities market, in order to counteract the legalization (laundering) of proceeds from crime;
* provides disclosure of information about registered you
launches of securities, professional price market participants
securities and regulation of the securities market;
* ensures the creation of a public disclosure system
macia in the securities market;
* approves the qualification requirements for ru
managers and employees (employees) of professional
participants of the securities market, carries out their certification
(checking the compliance of the qualifications of managers and work
nikov to qualifying requirements) in the form
me taking a qualifying examination and issuing a qualification
on-going certificate, determines the procedure for certification,
list of documents to be submitted together with the application for admission
for certification, the number and types of certificates, qualification programs
fictitious exams and the procedure for passing them;
* develops drafts of legislative and other normative acts
goods related to the regulation of the securities market,
licensing the activities of its professional participants,
self-regulatory organizations of professional participants
securities market, monitors compliance with legislative
and regulatory acts on securities, conducts their examination;
* supervises the regional branches of the federation
ral executive body for the securities market;
* maintains a register of issued, suspended and canceled
licenses;
* establishes and determines the order of admission to the primary size
distribution and circulation outside the territory of the Russian Federation of prices
securities issued by issuers registered in the Russian
the Russian Federation;
» applies to the arbitration court with a claim for the liquidation of a legal entity that has violated the requirements of the legislation of the Russian Federation on securities, and for the application of sanctions against violators established by the legislation of the Russian Federation;
5.2. State regulation of the Russian securities market 209
* supervises the compliance of the issue volume with emission-i
ny securities to their quantity in circulation.
The federal executive body for the securities market creates its own territorial bodies to exercise its powers. There are 15 regional branches of the FCSM.
The powers of the federal executive body in charge of the securities market do not extend to the procedure for issuing debt obligations of the Government of the Russian Federation and securities of constituent entities of the Russian Federation.
* Ministry of Finance of the Russian Federation registers issues of securities
corporations, subjects of the Federation and local governments
leniya, licenses stock exchanges, investment companies
and funds, issues government securities and
regulates their circulation;
» 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 the open securities market, establishes and controls antimonopoly requirements for operations on the securities market, etc.;
* State Committee for Antimonopoly Policy setting
issues antimonopoly rules and controls their application
completion;
* Insurance Supervision Department governs
features of activity in the securities market of insurance companies
pany.
State regulation is carried out in the form of:
» direct (administrative);
» indirect (economic) regulation.
The form of expression of the state regulation of the securities market are legal acts, through which regulation is carried out.
Direct government regulation consists in the development of norms, rules and control over their implementation and includes:
1. Creation of legislative acts.
Legislative framework regulating the development of the securities market are legal acts adopted in 1990-2004, regulating various aspects of the activities of its participants. Per-
210________________________ Chapter 5. Regulation of the securities market
The first was the Law “On the Central Bank of the RSFSR” (dated December 2, 1990), then the “Regulations on Joint Stock Companies” (dated December 25
1990), “Regulations on the issue and circulation of securities and stock
exchanges in the RSFSR" (December 28, 1991), Law of the RSFSR of July 3
1991 "On the privatization of state and municipal enterprises
ty in the Russian Federation”, “State program of privatization of state
and municipal enterprises of the Russian Federation” (Decree of the President dated December 24
December 1993 No. 2284).
General concepts of securities and transactions with them are given in the Civil Code of the Russian Federation. The Federal Law “On the Securities Market” dated April 22, 1996 regulates the activities of professional market participants, characterizes the role and mechanism of operation of stock exchanges, the Federal Commission for the Securities Market of the Russian Federation (FCSM of Russia) and its regional branches, formulates the basic concepts of the securities market papers. The Federal Law "On Joint Stock Companies" dated December 25, 1995 regulates the actions of a joint stock company in the securities market. The Federal Law “On the Protection of the Rights and Legitimate Interests of Investors in the Securities Market” dated March 15, 1999 regulates the issues of information disclosure and the procedure for protecting the rights and interests of investors in the stock market.
A large number of regulations issued by the Federal Commission for the Securities Market of the Russian Federation regulate a number of individual procedures. For example, the “Standards for issuing shares and bonds and their prospectuses during the reorganization of commercial organizations”, approved by Resolution No. 48 of the Federal Commission for Securities of Russia dated November 11, 1998, describe in detail the procedure for issuing shares and bonds of joint-stock companies and other commercial structures placed during their reorganization.
To date, there are about 1000 legislative and normative documents regulating the securities market and various aspects of the activities of its participants.
2. Control of financial stability and market security, which consists of:
* in the registration of securities;
* in licensing professional activities,
» in the supervision of the financial condition of investment institutions, etc.
All types of professional activity in the securities market, specified in Ch. 2 of the Federal Law "On the Securities Market", are carried out on the basis of a special permit - a license issued by
5.2. State regulation of the Russian securities market 211
granted by the federal executive body for the securities market or its authorized bodies on the basis of a general license.
Authorities that issued licenses control the activities of professional participants in the securities market and decide to revoke the issued license in case of violation of the legislation of the Russian Federation on securities.
The activities of professional participants in the securities market are licensed by three types of licenses: a license of a professional participant in the securities market, a license to maintain a register, and a stock exchange license.
The main condition for obtaining a license and for a broker and/or dealer to provide services for preparing a securities prospectus is the requirement for the amount of equity capital in accordance with the established regulatory legal acts of the federal executive body for the securities market and qualification requirements for employees (employees).
3. Ensuring transparency and equal information of all participants
nickname of the market.
4. Maintaining law and order in the market.
Indirect government regulation(economic management) occurs through:
* monetary policy of the state (interest rates, minimum
ny wages, etc.);
* tax policy (tax rate, exemptions and exemptions
them);
» public capital (state budget, off-budget funds of financial resources, etc.);
* state property and resources (state
enterprises, natural resources and land).
Currently, indirect regulation is predominant.
ing.
On the primary market state regulation is focused on maintaining a unified procedure for the issuance (issue) of securities into circulation through state registration of emission prospectuses and through attestation and licensing of the activities of professional market participants.
On the secondary market state control is carried out through licensing the activities of professional participation -
212________________________ Chapter 5. Regulation of the securities market
market and by issuing qualification certificates that give the right to perform certain types of activities in the securities market, as well as overseeing compliance with monopoly legislation.
The tasks of regulation can be of a macroeconomic and regional nature. The latter is especially important in such a huge federal state as Russia.
Thus, state regulation and supervision consist in the development of laws, norms, rules and control over their implementation.
5.3. Self-regulatory organizations of professional participants in the securities market
In addition to the state, the process of regulation of the securities market is carried out by self-regulatory organizations of professional participants in the securities market (SROPURTSB) (see Figure 5.3.1).
Self-regulatory organizations are non-profit, non-governmental organizations created by professional participants in the securities market on a voluntary basis to ensure the conditions for the professional activities of participants in the securities market, to comply with the standards of professional ethics in the securities market, to protect the interests of securities holders and other clients of professional participants in the securities market who are members of a self-regulatory organization, establishing rules and standards for conducting transactions with securities that ensure efficient operation in the securities market.
All income of a self-regulatory organization is used by it exclusively for the fulfillment of statutory tasks and is not distributed among its members. Self-regulation is aimed at achieving a highly liquid market and assumes the responsibility of the organization's participants to customers.
The activities of the SROPURTSB are regulated by various legislative acts, for example, the Law of the Russian Federation of April 22, 1996 No. 39-FZ “On the securities market”, the Law of the Russian Federation of November 29, 2001 No. 156-FZ “On investment funds”.
Members of the self-regulatory organization of professional participants in the securities market (SROPURTSB) can only be professional participants in the securities market. To get the status of
Rice. 5.3.1. Self-regulation in the securities market
214________________________ Chapter 5. Regulation of the securities market
non-regulated organization, it must be established by at least ten professional participants in the securities market. An organization created by professional participants in the securities market acquires the status of a self-regulating organization on the basis of a permit issued by the Federal Financial Markets Service (formerly FCSM).
To obtain a permit, the following must be submitted to the federal executive body for the securities market:
* application for the acquisition of its status;
» certified copies of documents on the establishment of a self-regulatory organization;
* the rules and regulations of the organization adopted by its members and obligatory
nye for execution by all members of the self-regulatory organization.
The rules and regulations of the self-regulatory organization must contain requirements for the self-regulatory organization and its members in relation to:
1) professional qualifications of personnel (with the exception of
technical);
2) rules and standards for the implementation of professional activities
news;
3) rules limiting price manipulation;
4) documentation, accounting and reporting;
5) the minimum amount of their own funds;
6) rules for joining the organization of a professional participant
the securities market and exit or exclusion from it;
7) equal rights to representation in elections to governing bodies
organization and participation in the management of the organization;
8) the procedure for the distribution of costs, payments, fees among members
organizations;
9) protecting the rights of customers, including the procedure for handling claims
and complaints from clients of members of the organization;
10) obligations of its members towards clients and other persons
for damages due to errors or omissions in the implementation
being a member of the organization of his professional activity
sti, as well as illegal actions of a member of the organization or its
officials and/or personnel;
11) compliance with the procedure for considering claims and complaints of members
organizations;
5.3. Self-regulatory organizations of participants in the securities market 215
12) procedures for conducting audits of compliance by members of the organization
established rules and standards, including the creation of
role body and the procedure for familiarization with the results of inspections
other members of the organization;
13) sanctions and other measures against members of the organization, they must
natural persons and / or personnel and the procedure for their application;
14) requirements for ensuring the openness of information for verification
rock, held at the initiative of the organization;
15) monitoring the implementation of sanctions and measures applied to members of the organization
nization, and the order of their accounting.
A self-regulatory organization that is a trade organizer is obliged, in addition to the requirements listed above, to establish and comply with the rules:
* conclusion, registration and confirmation of transactions with boom securities
gami;
» carrying out transactions that support trading in securities (clearing and/or settlement transactions);
* registration and accounting of documents used by members of the organization
when concluding transactions, conducting operations with securities;
* resolution of disputes arising between members of the organization
when making transactions with securities and settlements on them,
including cash;
» procedures for providing information on bid and offer prices, prices and volumes of transactions with securities made by members of the organization;
* provision of services to persons who are not members of the organization.
The permit issued by the federal executive body for the securities market of a self-regulatory organization includes; the following rights:
* receive information on the results of inspections of the activities of
their members, carried out in the manner prescribed by the Federal
executive body for the securities market (re
regional branch of the federal executive body
authorities for the securities market);
* develop rules and standards for the implementation of professional
financial activities and operations with securities
members and monitor their compliance;
216________________________ Chapter 5. Regulation of the securities market
* monitor compliance by its members with the adopted Samora
regulated by the organization of rules and standards of implementation
professional activities and transactions with securities boom
gami;
» in accordance with the qualification requirements of the federal executive body for the securities market, develop curricula and plans, train 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 issuance of a permit may be refused if the documents submitted by the organization of professional participants in the securities market do not contain the relevant requirements listed above.
The self-regulatory organization is obliged to provide the federal executive body for the securities market with data on all changes made to the documents on the establishment, regulations and rules of the self-regulatory organization, with a brief justification of the reasons for and purposes of such changes.
The following self-regulatory organizations of professional participants in the securities market operate on the securities market, such as:
» Professional Association of Stock Market Participants (PAUFOR);
» Council of Major Registrars and Depositories (SCRO);
» Professional Association of Registrars, Transfer Agents and Depositories (PARTAD);
* National Association of Stock Market Participants
(NAUFOR);
* non-profit partnership "Association for the Protection of Interests
shareholders of enterprises and organizations” (OPIAC);
* National Stock Association (NFA);
* Association of Bill Market Participants (AU VER), etc.
At the end of 1994, the Professional Association of Stock Market Participants, PAUFOR, was established in Russia, consisting of 15 companies. The initial tasks of PAUFOR were to develop standards for trading in securities and a set of disciplinary measures for their violators, as well as to create an over-the-counter computer trading system for members of the association.
5.3. Self-regulatory organizations of participants in the securities market 217
Two self-regulatory organizations - the Council of Major Registrars and Depositories (SCRO) and the Professional Association of Registrars, Transfer Agents and Depositories (PARTAD) - became the initiators of the development of the Regulation "On the activity of maintaining the register of securities holders" (adopted on June 21, 1995), in in accordance with which uniform standards were introduced to regulate the activities of registrars.
Active work on the securities market is carried out by the largest
regulated organization - "National Association of Members
stock market” (NAUFOR) (600 companies) and non-commercial
partnership "Association for the protection of the interests of shareholders of the enterprise
ty and organizations” (OPIAC). >< >
The National Stock Association (NF A) - formerly the National Association of Government Securities Market Participants (N AU RAG) - was established in January 1996 (200 credit institutions from 20 regions), performs the functions of the SCRO: licensing of professional participants, collection, analysis and presentation in the FFMS (formerly the FCSM) reporting of professional participants, monitoring their activities, etc. Developed: Code of good faith business conduct in the stock market with annexes: Requirements for a professional participant in the securities market, Rules for customer service in the securities market; Regulation "On the prohibition of price manipulation".
Self-regulation is aimed at achieving a highly liquid market and involves the establishment of qualification and ethical norms, standards for its participants, their responsibility to clients, the establishment of rules and the implementation of trading operations, the development of proposals for the development of the securities market, as well as monitoring compliance with rules and regulations.
The benefits of self-regulation include:<
* development of standards of behavior by professional
securities market participants who actually represent (zpa~
ing) its features;
* saving public funds, reducing the administrative apparatus *
research by the securities market;
* great exactingness in the implementation of control of general
stvennyh structures than on the part of officials;
» simplifying the introduction of ethical standards of behavior for professional participants in the securities market through public regulation.
218________________________ Chapter 5. Regulation of the securities market
5.4. Exchange regulation of the securities market
Along with state regulation and self-regulation, there is exchange regulation in the securities market, i.e. regulation with the help of exchanges.
The exchange should have an efficient organizational structure that could provide not only lower costs associated with trading in securities, but also market liquidity, a sufficient number of sellers and buyers, the ability for bidders to receive the necessary and accurate information about both past prices and volumes of transactions , and the current prices of the seller and the buyer, the volumes and types of securities presented. It must also ensure the confidence in the exchange on the part of its members, that is, it must have elected governing bodies. Therefore, the exchange is considered as a self-regulatory organization operating on the principles of exchange self-regulation. This is manifested in the fact that, within the framework of the current legislation, the exchange itself decides on the organization of its management, which is reflected in its charter.
Exchange regulation is carried out through the stock exchange (stock departments of the currency and futures exchanges).
The regulation of the securities market through the stock exchange is carried out through the establishment of rules for trading on the exchange, standards and requirements for both securities, issuers of these securities, and bidders. The main directions of exchange regulation are presented in fig. 5.4.1.
The exchange can have both external and internal regulation.
External regulation is the subordination of the activities of the exchange to the regulations of the state, other organizations, international agreements. External regulation is carried out by state bodies, self-regulatory organizations and international organizations. The basis of external regulation is state regulations. These include laws, resolutions, orders, decrees, etc., which create a unified legal basis for exchange activities and provide legislative support to exchanges.
The role of the state in regulating exchange activities is quite significant. It has traditionally been entrusted with providing the legal framework that supports the efficient functioning of a market economy.
State regulation of the stock exchange is necessary not so much for professional traders as for their clients, whose
Fig.5.4.1. Exchange regulation in the securities market
220________________________ Chapter 5. Regulation of the securities market
kazy they perform in the course of their activities. This is due to the fact that investors, as a rule, do not have direct access to the stock exchange and do not directly participate in exchange trading, but trust professional intermediaries with their rights and funds for investing in securities. The state cares first of all about observing the interests of investors and, with the development of the stock market, must guarantee their observance in a certain way. The state ensures equal rights for all participants in exchange trading, stimulates participation in it, controls compliance with established trading rules.
An integral part of state regulation is the licensing of stock exchanges, organizations of its infrastructure and professional participants in trade.
internal regulation is the subordination of its activities to its own regulatory documents: the charter, the memorandum of association, the Rules and other internal regulatory documents that determine the activities of this exchange as a whole, its divisions and employees.
The memorandum of association is a document that lists the founders and defines the following characteristics: the purpose of creating the exchange; ways to achieve the goal; responsibility for obligations; state of the statutory fund; rights and obligations of founders; conditions for terminating activities; its location and details.
The charter of the exchange includes: goals and activities; provisions defining the authorized capital, funds and use of income; the rights and obligations of its members; management procedure and rights of the exchange; accounting and reporting; termination of activity.
The Stock Exchange approves the following internal documents:
1. Rules for admission of a securities market participant to trading; exchange
develops qualification requirements for participants
trades. Exchange members participating in exchange trading
must know the rules of work on the stock exchange, have the necessary knowledge
knowledge and practical skills in all areas of activity, related
nyh with stock trading.
2. Rules for listing/delisting securities and/or admission of securities
securities for trading without going through the listing procedure; standardization
tion of requirements for the quality characteristics of exchange goods
ditch. The exchange guarantees the reliability of securities, which are
are traded on it, since only those
securities that have been listed, i.e. comply with
the requirements placed on them.
5.4. Exchange regulation of the securities market ________________ 221
3. Rules for conducting trading on the stock exchange, which must
contain:
Types of exchange transactions, the procedure for their execution, registration,
execution, termination and invalidation;
Rules for concluding and reconciling transactions;
Rules for registration of transactions;
The order of execution of transactions;
Rules restricting price manipulation and use
calling service information.
4. Rules of conduct for bidders in the hall, establishing ethical
ski standards, the code of conduct for participants in exchange trading.
5. Rules for resolving disputes arising from concluded bir
transactions during exchange trading, arbitration and sanctions for
violation of the rules of exchange trading.
6. The procedure for providing current information by the exchange (publication
stock market bulletin).
The Exchange must maintain constant control over the content of its internal communications systems to ensure their reliability and oversee the financial discipline of its members - trading participants, so that the bankruptcy of one member (participant) does not entail the bankruptcy of another.
The exchange should carry out strictly regular checks on the correctness of the accounting of transactions and control of the maintenance of the bank account (generally on a daily basis). The regulation system here is extremely rigid.
The main problem of the Russian securities market is the presence of a large number of regulators. The Central Bank is responsible for the development of the banking sector, registers issues of securities of credit institutions, carries out operations and regulates the procedure for conducting operations by credit institutions on the open securities market, establishes and controls antimonopoly requirements for operations in the securities market, etc. The Ministry of Finance registers the issue state, subfederal and municipal securities, oversees the development of the insurance sector. The FFMS oversees rule-making in the field of the issue and circulation of corporate securities, is responsible for compliance by issuers and professional participants in the stock market with certain standards, and licensing of professional participants. The Ministry of Labor and Social Protection oversees the activities of non-state pension funds. VEB simultaneously acts as an agent of the Ministry of Finance
Chapter 5. Regulation of the securities market
on servicing Russian Eurobonds and the functions of the state management company for managing pension reserves of the Pension Fund of Russia. The Ministry for Antimonopoly Policy and Support for New Economic Structures monitors the maintenance of competition in the financial market and supervises the work of commodity exchanges. The Ministry of Economic Development and Trade is responsible for formulating industrial policy.
In addition to state regulatory bodies, there are also self-regulatory organizations of professional participants in the securities market.
Various regulators are developing their own regulations governing the development of the securities market, many of whose provisions contradict each other. The actions of various regulators in the securities market often contradict each other. This is evidenced by the contradictory actions of the regulators in the crisis year of 1998, which exacerbated the crisis in the financial market. Such ill-considered steps include, for example, the FCSM's suspension of trading on the MICEX in the conditions when the MICEX remained the only trading organized market.
The presence of many regulators objectively contradicts the development of the Russian stock market.
There is a need to distribute or coordinate their functions. Currently, there are several approaches to solving this problem: 1) separating responsibilities for regulating the securities market according to functional grounds and 2) segregation of duties on institutional sign. The Central Bank is a supporter of the institutional regulation of financial institutions according to their departmental affiliation, the FCSM insists on functional regulation (for example, everything related to the corporate securities market falls within the competence of the FCSM). However, this approach leads to the same contradictions. It remains unclear who and how will determine what is institutional regulation and what is functional regulation. Therefore, it is necessary to turn to international experience, namely, to strive for the creation of a single mega-regulator of the financial market, similar to the FSA created in Great Britain.
The idea of creating a single mega-regulator of the Russian financial market has many serious opponents. Some opponents argue that the creation of a mega-regulator in the UK was facilitated by the fact that the British insurance, pension, stock and banking markets were essentially the same persons. And regulation
5.4. Exchange regulation of the securities market
It was simply economically expedient to have their activities under one body. The Russian financial market is still a segmented market. Financial institutions operating in several segments of the financial market at once are rather isolated (for example, the Capital group, Guta-bank, and other banking groups). On the other hand, opponents refer to the fact that the creation of such a mega-regulator will not reduce transaction costs for market participants, but will sharply increase bureaucracy in public administration.
The creation of such a mega-regulator is a lengthy process, which is associated with the resolution of many contradictions between regulators and often comes down to the question of which regulator this new mega-regulator will be based on.
Until now, the place of self-regulation in the overall system of public administration of the financial market remains unclear. At different times, the leadership of the FCSM approached self-regulatory organizations with different requirements. In the past, the FCSM saw a self-regulatory organization (SRO) as a division of the FCSM, which is fundamentally wrong. According to the Law "On the Securities Market", membership in an SRO can only be voluntary. In practice, membership in NAU FOR was a necessary condition for obtaining a license as a professional participant. Today's leadership of the FCSM has taken the opposite position on the complete displacement of SROs from the sphere of regulation.
The creation of a unified concept for the development of the Russian securities market and the coordinated activities of all regulators in this direction are one of the main tasks today.
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 the totality 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 objectively prevailing circumstances of its hypertrophied 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 in 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 of all its participants and transactions between them by organizations authorized by the company for these actions.
Regulation of the securities market covers all types of activities and all types of operations on it, 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, which means 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 granted 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
1. Civil Code, part I and II
3. Astakhov M. The securities market and its participants. - M., 2006.
4. "Introduction to the Russian stock market" // Uch. settlement ed. Zolotarev V.S., Kuznetsov N.G., Kravtsova N.I. and others, Rostov-on-Don, 2005, p. 5–7.
5. Ivashina T.B. "Securities market: analysis, foreign experience, prospects", Voronezh, 2006, p. 13–15.
6. Nikiforova V.D., Astrovskaya V.Yu. State and municipal securities. - St. Petersburg: Peter, 2008.
7. "Securities Market" // Uch. settlement ed. Kolesnikov V.I., Torkanovskiy V.S., Baklanov S.A., St. Petersburg, 2007, p. 80–97.
After studying the material in this chapter, the student should:
know
■ principles and goals of state regulation of the securities market;
■the main laws governing the securities market;
■types of professional activity in the securities market;
■the procedure for issuing securities;
■the meaning of the term "qualified investor";
be able to
■navigate the legislation governing the securities market;
■determine the types of professional activity in the securities market;
■allocate separate stages of the procedure for issuing securities;
own
■conceptual apparatus in the field of state regulation of the securities market;
■method of carrying out the procedure for issuing securities.
The securities market is a rather complex economic system, the functioning of which affects the interests of numerous participants. Such complex markets require some kind of regulation to ensure that all participants act according to certain rules known to all. Therefore, in all countries with a functioning securities market, much attention is paid to state regulation of activities in the stock market.
The system of state regulation of the securities market
State regulation of relations developing in the securities market is carried out by legislative and executive authorities through the issuance of regulatory legal acts regulating the activities of participants in the securities market, monitoring their compliance with legal norms, and protecting the rights and interests of participants in the securities market.
The main goals of state regulation are:
■ formation of the necessary and sufficient regulatory framework to ensure the efficient functioning of the securities market;
■ provision of conditions for efficient operation of securities market institutions, development of certain rules of conduct for market participants.
■ protecting the rights and legitimate interests of securities market participants.
State regulation system securities market includes:
- 1) a set of laws and other legal acts, the effect of which applies to relations developing in the securities market;
- 2) the structure of government bodies, whose competence includes the regulation of relations developing in the securities market.
TO basic principles of regulation relate:
■ state regulation of the securities market – the market regulation system is determined by the state, which takes measures to protect the rights and legitimate interests of participants in the securities market;
■ unity of the regulatory framework, regime and methods of market regulation throughout the Russian Federation;
■ a combination of state regulation and self-regulation in the form of transfer by the state of its rule-making and control functions to certain categories of participants in the securities market, organized into self-regulatory organizations.
The implementation of these principles is based on a system of legal norms of several hierarchical levels.
Basis - highest level system of legal norms is the Constitution of the Russian Federation, which has the highest legal force and has direct effect on the entire territory of the Russian Federation.
Article 8 of the Constitution of the Russian Federation guarantees the unity of the economic space, which implies the unity of the market, freedom of economic activity and the use of a single monetary unit. The unity of the market lies, in particular, in the free movement of financial resources throughout the country, as well as in respect for the rights of citizens and legal entities to freely conduct transactions with financial resources and instruments. The unity of the economic space is also ensured by the unity of the legislative regulation of the economy, which in the sphere of regulation of the securities market should provide for generally binding rules for the functioning of the market, establish requirements for market participants and the rules for forming relations between them, protect the rights and legitimate interests of participants in the securities market. The creation and maintenance of the unity of the economic space is guaranteed by the duties of the federal state authorities due to the fact that the Russian Federation is in charge of establishing the legal foundations of the single market, financial regulation, and financial economic services.
Second level legal regulations are federal laws. Federal laws contain general norms that determine the rules and procedures for the activities of participants in the securities market, without their detailed regulation. The legal norms by which the state regulates relations in the securities market are contained in the following basic federal laws: the Civil Code of the Russian Federation, the Law "On the Securities Market"; Law "On Joint Stock Companies"; Federal Law No. 46-FZ of 05.03.1999 "On Protection of the Rights and Legitimate Interests of Investors in the Securities Market".
Separate norms relating to the regulation of relations in the securities market may be contained in other laws. Thus, the Federal Law of July 29, 1998 No. 136-Φ3 "On the Features of the Issue and Circulation of State and Municipal Securities" regulates the procedure for issuing, placing and circulating state and municipal bonds, the Law "On Mortgage Securities" regulates the features of the issuance of mortgage bonds and activities mortgage agents, the Federal Law of November 29, 2001 "On Investment Funds" regulates the activities of joint-stock and unit investment funds, management companies.
Third in order of importance level are decrees of the President of the Russian Federation that specify the norms of civil law and other federal laws in force or regulate relations on which laws have not yet been adopted or whose adoption is not necessary.
fourth level legal norms are the relevant acts of the Government of the Russian Federation (decrees and orders), through which the implementation of federal laws and decrees of the President of the Russian Federation is ensured. Thus, in accordance with Federal Law No. 128-FZ of 08.08.2001 “On Licensing Certain Types of Activities”, Decree of the Government of the Russian Federation No. 32 of 14.07.2006 “On Licensing Certain Types of Activities in Financial Markets” defines the requirements for licensing the activities of investment funds, management investment funds, mutual investment funds and non-state pension funds, specialized depositories of investment funds, mutual investment funds and non-state pension funds, non-state pension funds for pension provision and pension insurance.
Detailed regulation of the activities of participants in the securities market is contained in the regulations of the executive bodies of state power of the Russian Federation, whose competence includes issues of regulating the securities market. Such acts form fifth level legal norms. Despite the fact that the regulations of these departments are at the bottom of the hierarchical structure of legal acts, their impact on the regulation of relations in the securities market is significant, since it is they that determine the specific powers of participants in the securities market, the requirements for their activities, their responsibility to regulators .
The main subject of state regulation of the securities market is the Bank of Russia, to which all functions of regulation, control and supervision in the field of financial markets have been transferred from the abolished Federal Service for Financial Markets (Decree of the President of the Russian Federation of July 25, 2013 No. 645, Federal Law of July 23, 2013 251-FZ "On Amendments to Certain Legislative Acts of the Russian Federation in Connection with the Transfer of Authority for Regulation, Control and Supervision in the Sphere of Financial Markets to the Central Bank of the Russian Federation"). The Bank of Russia has fairly large powers in the sphere of regulation of the securities market, the presence of which gives it the right to:
- 1) for the development of the main directions for the development of the securities market and the coordination of the activities of federal executive bodies on issues of regulation of the securities market;
- 2) development of draft legislative and other regulations related to the issues of regulation of the securities market, licensing the activities of its professional participants, self-regulatory organizations of professional participants in the securities market, control over compliance with legislative and regulatory acts on securities, conducting their examination;
- 3) development of recommendations on the application of the legislation of the Russian Federation regulating relations related to the functioning of the securities market;
- 4) approval of standards for the issue of securities, issuers' securities prospectuses and the procedure for state registration of an issue and a report on the results of the issue of issue-grade securities and registration of securities prospectuses;
- 5) development and approval of uniform requirements for the rules for carrying out professional activities with securities;
- 6) establishing the procedure for and carrying out the licensing of various types of professional activities in the securities market, as well as the suspension or cancellation of these licenses in case of violation of the requirements of the legislation of the Russian Federation on securities;
- 7) determination of standards for the activities of investment, non-state pension, insurance funds and their management companies, as well as insurance companies in the securities market;
- 8) monitoring compliance by issuers, professional participants in the securities market, self-regulatory organizations of professional participants in the securities market with the requirements of the legislation of the Russian Federation on securities, standards and requirements approved by the federal executive body for the securities market.
The entire system of state regulation of the securities market is aimed at ensuring the full and effective operation of the objects of regulation - issuers, professional participants in the securities market, and investors. But the degree and forms of applied regulatory measures are different for each of these groups. If in relation to the first two groups measures of direct influence are applied through mandatory norms of laws and other legal acts, then in relation to investors, in addition to measures of direct influence, indirect measures are also applied: the formation of the necessary legislative framework for the investment process, the creation of the necessary institutions of the securities market, effective mechanism and reliable financial investment instruments, favorable tax regime.