New framework for the capital market in Serbia


The end of 2021 marked the adoption of the new capital market law (the “Law“) in Serbia, which was published on December 28, 2021. The law was adopted in line with the recently adopted Capital Market Development Strategy for the period 2021-2026 and as part of a wider accession process from Serbia to the EU.

The aim of the law is to further harmonize the local legal and institutional framework with EU rules and to have a stimulating effect on the market and market players. The main specific objectives include restoring investor confidence and interest in investing, increased transparency, security of the financial market, all of which should contribute to the development of the capital market and provide additional sources of finance for companies in Serbia. .

The law brings a whole new set of rules in line with the relevant European regulations governing markets in financial instruments (MiFID I and MiFID II), prospectuses, investor compensation systems, transparency, securities settlement and financial instruments. market abuse. Compared to the current law on the capital market, which was adopted in 2011 and was partially aligned with the EU acquis at the time, the law introduces new rules concerning: (i) dematerialized securities and the operations of entities authorized to transact with financial instruments, (ii) the conditions and forms of organized trading with financial instruments, (iii) a new institution of data communication service provider, (iv) the improvement of the quality of information received by clients regarding investment services, (v) stricter regulatory requirements, in particular with regard to new trading platforms and high frequency and algorithmic trading, (vi) obligations of participants in the capital market regarding market abuse and (vii) the supervisory obligations and broader sanctioning powers of the Securities Commission m obilières.

The law will enter into force on January 5, 2022, but will begin to apply one year late, that is to say from January 6, 2023. At that time, the old law on the market of capital will cease to apply.

Brokerage firms and credit institutions which have received an operating authorization from the Securities Commission until the date of entry into force of this law are required to harmonize their operations and their acts with the provisions of the law, within a period of one year from the date of entry into force.

At the institutional level, the law provides that the Securities Commission is required to adapt its organization in accordance with this law and to adopt implementing regulations within six months from the date of entry into force of this Law, while the Deposit Insurance Agency which organizes and manages the Investor Protection Fund, the Central Securities Depository and the Clearing House, and the Belgrade Stock Exchange is obliged to organize and harmonize its acts with the provisions of this law, within nine months from the date of entry into force.


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