At a foresight session in Astana hosted by the Independent Directors Association at the Astana International Financial Centre, the Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan set out recent and planned measures to develop the securities market and raise corporate governance standards. The agenda includes tighter requirements for independent directors, work on new legislation affecting capital markets, and further digitisation initiatives. The agency highlighted that equity market capitalisation rose by 22% to KZT 40 trillion, while issuers raised KZT 8.6 trillion over the first nine months of the year, up 5% year on year. The exchange lists around 88 shares from 75 issuers, and the corporate bond segment includes 660 issues from 143 issuers; more than 100 new issuers have listed since 2022. Measures cited also included launching an over-the-counter platform for retail investors; completing the digital transformation of market infrastructure through modernised trading and clearing systems and a central counterparty across all segments; automation of securities-holder registers and a corporate actions portal at the central securities depository; and expanded connectivity with Euroclear, Clearstream and BNY Mellon to support foreign investor access. Institutionally, a new draft law on investment funds has been prepared and a law on endowment funds has been adopted; the agency also pointed to plans to establish a National Rating Agency. Looking ahead, the agency plans a package of amendments to legislation on the securities market, joint-stock companies and limited liability partnerships to introduce more flexible corporate law, simplify regulatory procedures, reduce the costs of accessing public markets, mobilise demand and support regional integration. Proposals include a new organisational form to narrow the structural gap between limited liability partnerships and joint-stock companies, a dedicated exchange segment for small and medium-sized enterprises with simplified listing requirements, and a “single window” intended to shorten listing timelines and remove overlapping approval functions across the agency, the Kazakhstan Stock Exchange and the central securities depository. Investor-protection measures under consideration include disclosure requirements for rating information, stronger controls against insider trading and market manipulation, development of guarantee funds against unfair practices, expanded independent director powers including audit rights, and mechanisms to protect investors financially against fraud; in parallel, the agency and the National Bank plan to develop a legal framework for digital financial assets and explore distributed ledger technology to support ownership verification and faster settlement.

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