Any securities transactions should be subject to certain rules and comply with established standards, otherwise it would be chaos.That is why the need for state regulation of the market, which would not only control the order and legislate the rights and obligations of parties to the transaction.
Do not forget that trade on stock exchanges and government securities, so in the interest of governments to ensure stable and efficient operation.State regulation of the market is aimed at reducing the risk to the lowest possible level, identification and destruction of all fraudulent attacks, the introduction of innovations and improvement of the professional intermediaries.
Securities markets should function independently, and excessive control of government agencies can reduce the rates of return on operations.There is a fine line between unobtrusive activity of the market in a positive direction and a gross interference with the restructuring of the main structure.
Thus, state regulation of the securities market may be carried out in the following ways:
- introduction of legislation, revealing the basic requirements for the qualification level of participants operations.
- Establishing the main standards that must be met or that securities sold on the stock exchange.
- official registration of securities issued by each party.
- control over the availability of each agent on the Exchange special license confirming the acquisition of professional skills and knowledge, and establish its level of qualification.
- Organization of a special unit to protect the rights of buyers of valuable documents.
- settlement of disputes, as well as the elimination of the participants who do not have a professional license.Establishing the specific penalties for violation of the basic rules laid down by current legislation.For intermediaries such punishment can serve as a cancellation of the license and the payment of the fine.
All instruments of the securities market should undergo mandatory testing, called listing.This procedure is carried out by experts in order to identify compliance with specific security requirements of the quotation on the stock exchange.Not all issuers of shares or bonds given to the examination, many people prefer to take them for sale at a street market.This is also possible, but it is necessary to understand that the level of risk of non-profits will be much higher, which is not considered to be beneficial for the buyer.And the issuer is aware that the value of the securities that have passed the listing procedure, is much higher, as the riskiness of their significantly reduced.According to the law, advertise valuable documents before the end of the listing is strictly prohibited and may be followed for the violation fine.
Professional Exchange participants are also involved in issues of security holders of securities as collateral, guardianship guarantees.In some cases, property insurance performed to reduce the riskiness of the project.
Exchange differs from other market its sensitive reaction to the slightest changes in the basic conditions of the instrument.As a result, the state regulation of the securities market should be specific, not specific for other ways.For example, in order to increase the level of liquidity on the stock exchange the method of self-regulation, where the supervisory authority is a partial submission of both the state and direct resellers.
Investing in securities, particularly individuals, play an important role for the development of the national economy, as the savings that were stored earlier just now begun to operate and make a profit.Therefore, the regulation must be carried out correctly, so as not to harm the market conditions, but also to provide precise performance standards.
