Uzbekistan has introduced new rules allowing qualified investors and legal entities to buy foreign stocks, bonds and units of exchange-traded funds (ETFs) through local stock exchanges and electronic platforms operated by investment intermediaries. The Ministry of Justice has registered the new framework, which operates under a special legal framework known as a regulatory sandbox for the capital market. Eligible assets will not be unrestricted: purchases will be limited to securities included in a special registry maintained by the National Agency for Prospective Projects. The rules also prohibit buying foreign securities with borrowed funds and require settlements in foreign currency.
Key Takeaways: Uzbekistan is opening a controlled channel for qualified investors and companies to access foreign securities through local market infrastructure. Only assets approved in a special registry may be traded, and leverage is banned. Foreign investors may also receive simplified access to Uzbek stocks and bonds without opening a broker account in the country.
The measure is part of broader efforts to develop Uzbekistan’s capital market and expand access to international financial instruments while containing risks for less experienced retail investors. By limiting participation to qualified investors and legal entities, the framework seeks to test cross-border trading and depositary arrangements before any wider liberalization. The registry requirement gives regulators a gatekeeping tool over eligible foreign assets, while the sandbox model allows officials to monitor operational, compliance and currency-related risks.
The document sets practical deadlines and procedural safeguards. Applications to admit foreign securities for circulation must be reviewed by the authorized body within 10 working days. Cash transfers under investor instructions must be completed within three banking days. Contracts with investment intermediaries may be signed remotely after digital identification. All settlements are to be made in foreign currency, and transactions through Uzbek exchanges and intermediary platforms must follow the new registration and reporting requirements.
The outlook depends on how quickly the registry is populated, how prepared intermediaries are to support foreign assets, and how smoothly digital identification and currency settlements work. Market participants will watch whether the sandbox remains limited to qualified investors or is gradually extended. For now, the rules signal a cautious opening: they broaden investment options and may improve market infrastructure, but they retain strict limits designed to prevent uncontrolled cross-border risk.
Source: podrobno.uz