Specifics and problems

Now Kazakhstan is on the development of the securities market, taking into account both historical Kazakh traditions and experience of countries with developed market economies. As you know, the main purpose of the securities market - to promote the efficient development of Kazakhstan's economy, accelerate financial stability and economic growth based on the revitalization of all the subjects of the market economy in the first place, the population.     One of the major problems hindering the development of the securities market in Kazakhstan is underdeveloped legislative base.     Current legislation does not fully disclose such matters functioning securities market, ensuring the protection of rights and interests invetorov. And the creation and activities of the management of investment funds, issuance and trading of derivative securities, etc.     The main cause of a significant negative impact on the development of Kazakhstan's stock market, has been the global financial crisis in emerging markets, in which foreign investors have started accelerated export from Kazakhstan of their capital.     There are also a number of subjective reasons for which the market does not get the normal development.     As already noted, the development of the securities market is complex and often ambiguous. The underlying principle of this process should be comprehensive and systematic, allowing a balanced and harmonious evolve all elements of the market.     The development of the securities market does not lead to the disappearance of other capital markets, the process of their interdependence and interaction of incentives. On the one hand, the stock market pulls on capital itself, and on the other, moves them through the mechanism of the securities to other markets, contributing to their development. The scale and importance of the securities market are such that its destruction leads directly to the destruction of the economic process, the process of reproduction in general. Therefore, all market participants have a direct interest in the fact that the market was well organized and tightly controlled in the first place the most important of his party - the State.     Kazakhstan's stock market has not yet moved to the stage of active growth, which is reflected in the low emission activity of organizations - issuers of corporate securities. Some optimism is the fact that in the IV quarter of 1999 there was an increase in prices and an increase in the volume of transactions with all the most popular stocks.     We can conclude that confirm the earlier NationalCommission projections for a gradual increase in the volume of transactions with the most popular stocks and their prices due to an increase in investment activity bathe. Positive experience in the production of fundamentally new instrument - bonds of local executive bodies - will help to ensure that future financial market will receive additional tools and Kazakh economy - financial resources. It should be recalled that all securities transactions conducted by professional participants of the securities market that has permission to perform certain operations, purchase and sale of securities is made in writing signed by the parties. Stock exchanges in its rules of stock trading may provide and other requirements for the form of transactions involving professional mediators. In transactions with securities professionals in the securities market, carrying out consultancy work for making recommendations on operations with them, must first maximize the set investment goals and objectives of the client, to maintain trade secret of all his transactions and avoid reference to it by third parties. All transactions with securities (especially with stock) in detail the regulations, but in Kazakhstan is not yet regulated.     As for the practical implementation of the "blue chips", providing output in the organized stock market is part of the state shares the largest and most attractive to investors Kazakh companies, it coincided with the start of the global financial crisis.     Not conducive to promoting corporate securities and the existing tax system, providing government securities and bank deposits obviously more favorable terms compared to the non-government securities.     Kazakhstan is constantly influenced by the world's stock exchanges on which the securities are treated different. The world's largest stock exchange in New York are turning stocks (mostly nominal) domestic (U.S.) and foreign companies, bonds (registered and bearer bonds), investment certificates. The Tokyo Stock Exchange trading, mainly registered shares of domestic issuers and a small percentage of debt securities (registered and bearer bonds).     On the London Stock Exchange address foreign and domestic securities (bearer and registered shares, respectively). This - firm percentage shares and state bonds and investment certificates. n each country, there is not one but a whole system of stock exchanges. On role of the individual in the national stock exchange systems. You can select a group of mono-and polycentric system of the stock exchanges. In the first type of system is dominated by one market, located in the principal financial center of the country, the others are of regional importance (USA, Italy, France, Japan). So, at the Milan and Paris stock exchanges has about 95% of the national turnover of the securities on the New York and Tokyo, - respectively, 84 and 80%. Development of organized stock market in Kazakhstan is under the exchange system.     Polycentric system of stock exchanges operating in Germany, Austria, Canada, Switzerland. Activities of regional stock exchanges, usually aimed at servicing the securities of local companies, and often does not go beyond a certain area. However, we should note the tendency of the provincial association exchanges. By polycentric device organized securities market tends Russian exchange system provided a significant number of regional structures. The stock market, as well as the economy as a whole, is not immune to recession and other shocks, sometimes causing deceleration of economic activity. The securities market has been and will be an indicator of the financial and economic health of the state: a sharp drop in stock prices is a terrible omen total financial disaster in the country, any economic recovery is immediate impact on the volume of financial transactions [28, c.72].     Thus, Kazakhstan's stock market in recent years is the subject of criticism and pessimism. The main reason for this attitude was the disappointment of the public in the stock market. And this in turn means that the need for accurate and effective program to address the problems directly related to the securities market.

In order to activate the National Stock Market Commission of the Republic of Kazakhstan on securities drafted a program for the development of the stock market of 1999 - 2000., Which aims to serve the concerned ministries and departments. The new program is addressed to the formation of the stock market as an effective mobilization and reallocation of domestic and foreign investors, investment in the real economy of Kazakhstan.     One of its main objectives - improving the regulation of the stock market and the financial market in the whole.     It is expected that this year the development of the Kazakhstan market securities will be evolutionary. During this period, most likely, will not happen gain stagnation processes. The most likely scenario is an increase in the volume of transactions with the most popular securities.     It seems likely the following changes in the infrastructure of the securities market: the number of non-banks by the end of 2008 will amount to no more than 10 - 15, based on the KASE and the Central Depository will create a republic-wide trade - accounting system. Which will allow, first, to participate in the exchange trades when in any region of Kazakhstan, second, to carry out various transaction processes for their execution and performance, and thirdly, the high degree of transparency of the stock market.     Reducing the number of broker-dealers - non-banks and registrars - will have an adverse effect on the overall stock market, as it will be offset by providing access customers from all regions of Kazakhstan to their services through intermediaries operating in the securities market, and their current and potential customers.     For the full functioning of the securities market should be a mechanism of state regulation of the stock market, combining the interests of investors and the state, with the highest possible non-interference in the practice of his stock trading. Should always learn from the experiences of other countries, in the process of development of the securities market to avoid many mistakes. Will give a significant boost to the participation of foreign investors, the assistance of competent international organizations [29, c.124].     In Kazakhstan, it would be helpful if the National Securities Commission to organize a specialized department analysts, preparing analytical information to the press that will interest and enhance the ability of investors to invest surplus funds in securities, and will serve as a "push" of the securities market.     Plan: 1) to ensure the development of domestic institutional investors Ithaca way to solve the problem of attracting savings in the economy of Kazakhstan, and 2) to increase the investment attractiveness of Kazakhstan corporate securities, and 3) to balance supply and demand for securities, creating, on the one hand, a variety of tools, and on the other, stable investor base, and 4) complete the privatization of state-owned shares of "blue chips."     We emphasize once again that, to attract the stock market as a wide range of investors, the state will increasingly focus on the possibility of domestic investors. The basic rate may be made to the various forms of collective investment. The state should also support foreign portfolio investors focused on the long-term presence in the Kazakh market securities. Necessary to protect the domestic financial market by controlling the flow of foreign investment in certain sectors of the economy, and their redistribution on the basis of priorities.     Domestic securities market should provide the citizens of the republic unimpeded participation in the making of the market and the use of securities as an alternative investment of available funds. That will allow to realize these opportunities offered by the National Commission of the Republic of Kazakhstan on securities model of development of the securities market.     In general, if all the planned activities in Kazakhstan will be able to create all necessary conditions for the development of the securities market as a regulator of market relations and the mechanism to mobilize the financial resources available to the various industries and sectors of the economy.     The main directions of further development of the domestic market for government securities, will be:

1) reducing the yield of government securities;

2) restructuring of domestic debt in favor of longer-term borrowing;

3) expansion of the holders of government securities;

4) development of the sector of government securities local management (municipal securities).

The basic condition for the development of the financial market is to reduce the yield of government securities, as high yield does not only increase the cost of servicing the public debt, but also increases the overall price level of borrowed resources. Now, many commercial banks are considering the government securities market as the most reliable and sufficiently profitable investment objects available funds. That is why in its arsenal in most cases they have two main sources of income - investments in market instruments and government securities commissions for services. This significantly complicates the situation with investment real economy.     It should be noted that in the process of development is still able to significantly reduce the yield of government securities through increased market pension funds, this trend will probably continue. However, to achieve an optimal level of return, corresponding to real possibilities of the economic system, to date, have not yet succeeded.     Important today is to attract people to the market and non-residents. As for the population, but today it does not take part in the government debt.     Kazakhstan is still the bulk of government securities purchased by primary dealers at your expense. To attract the savings necessary to use new liquid instruments that can be returned to the issuer at any time or after a certain period of holding. An important role is played by the cost of government bonds, which should be minimal, ie, available to most citizens.     The prospect of foreign investors in the securities market will depend on the ability to overcome the crisis of confidence on the part of foreign investors, which is still very new to the conditions and characteristics of the domestic stock market to engage in large scale operations with new tools for them.