The Procedure for Listing Local Products on the Stock Exchange To Be Simplified
On May 17, President Shavkat Mirziyoyev chaired a videoconferencing on increasing the volume of trading on the commodity exchange and expanding the participation of local enterprises at it.
The stock exchange is the basis of the market economy. The trading on the stock exchange creates free competition, opens up new the markets for entrepreneurs and helps to reduce the «shadow economy» and corruption.
As a result of reforms, the trade turnover on the country’s commodity exchange has doubled over the past three years, reaching 90 trillion Uzbek soums and the volume of goods sold has tripled.
In addition, 20 trading venues of the Republican Commodity and Raw Materials Exchange were established in foreign countries, through which products for $170 million were sold in the first four months of this year. Meanwhile, more than 1,2 thousand foreign companies began to exhibit the large volumes of products on the Uzbek stock exchange.
In the past, a large number of intermediaries participated at the bidding. A large enterprises earned an additional 8 trillion Uzbek soums thanks to transparent trading on the stock exchange last year.
However, there are still shortcomings in the organization process of exchange trading, expanding the participation of local entrepreneurs.
For instance, 85% of exchange trading falls on 45 types of highly liquid goods. The share in exchange trading of textile, silk, leather and cable products by the enterprises of the Syrdarya, Andijan and Surkhandarya regions remains low.
In this regard, the President has underscored the need to intensify the participation of districts in putting the local products on the stock exchange.
For example, 500 thousand tons of wheat shall be placed on the stock exchange from July 1. At the meeting the instructions were given on organizing this process, registering farmers and carriers, and creating favorable conditions for them.
In particular, farmers shall not be required to pay a deposit for the grain on the stock exchange. The payment for sold goods shall be made by the stock exchange on the same day. The stock exchange shall guarantee a timely and full payment to a farmer.
«This is a great opportunity to expand the presence of regions at the stock exchange», Shavkat Mirziyoyev has said.
At present, only 3,6 thousand out of more than 45 thousand local industrial enterprises put their products on the stock exchange. Indeed, this number is insufficient.
In this regard, the procedure of local products placement at the stock exchange shall be simplified.
Particularly from July 1, a separate prospective goods section will be set up on the stock exchange, where the local entrepreneurs shall be able to sell their products without additional required documents. Subsequently, the best-selling products shall be placed on the main trading areas of the stock exchange. A procedure of business registration will be implemented simultaneously with state registration.
A further advantage is that the commercial exchange commission for local entrepreneur’s production will be halved. No additional tax audit will be required for the goods distributed or purchased by entrepreneurs from the stock exchange.
It was emphasized that taking such opportunities will help double the turnover of the stock exchange. Specifically, the enormous resources in the chemical, oil and gas, metallurgical, textile and food processing industries were mentioned.
A particular attention is paid to the increase in export-import trade on the stock exchange. The measures to simplify the relevant procedures have been identified.
A number of tasks have been set at the meeting in terms of the assistance to entrepreneurs wishing to participate in exchange trading and training of specialists in this field.
The industry and regional leaders reported on the plans to expand trade on the stock exchange.
Address by the President of the Republic of Uzbekistan H.E. Mr. Shavkat Mirziyoyev to the Oliy Majlis and the People of Uzbekistan