Mongolia Financial Sector Assessment : Capital Markets
Contributor(s): Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: Financial Sector Assessment Program | World Bank E-Library ArchivePublisher: Washington, D.C : The World Bank, 2012Description: 1 Online-RessourceDOI: DOI: 10.1596/27094Online resources: Summary: This technical note summarizes findings and recommendations on measures for the strengthening of the capital markets in Mongolia. The authorities have taken bold steps in the last two years to modernize the Mongolian Stock Exchange (MSE) and put in place modern legal, regulatory and market infrastructure for the capital market. Improving the institutional, regulatory and supervisory framework is a key priority, and the enactment of a new securities market law should lay a sound foundation for the regulation and supervision of the securities markets. However, its current draft has several gaps that should be addressed. Nonetheless, development of the domestic securities market in Mongolia should take into account the inherent problems for small markets, because a central feature of the securities market is economies of scale. Currently, the local capital market is not representative of the full universe of Mongolian enterprises that are operating in the country at present. As a result, it may be difficult to attract foreign investors interest if the country's most attractive firms are not listed domestically. One of the most important elements for a strong domestic capital market is a diversified institutional investor base, and the regulatory agencies involved should pursue a concerted strategy toward developing the investor base. Mongolia needs to provide an enabling environment to attract a diverse range of institutional investors participation, including investors from abroadPPN: PPN: 1724882422Package identifier: Produktsigel: ZDB-1-WBANo physical items for this record