What are non-documentary securities? The securities market in Russia

The financial market includes several sectors. One of them is the stock exchange. The securities market is the source of receipt and redistribution of funds. Investors buy shares of promising companies and banks, speeding up their growth. There are documentary and non-documentary securities in circulation. The peculiarities of their functioning will be discussed in the article.

Definition

The securities market is a set of economic relations on issues of issuance and circulation of the Central Bank. It is also called a stock exchange. The main purpose of the market is to ensure the financial development of the economy. This can be done with the help of bank loans and through securities. In the second case, the funds are sent by investors:

• In developing companies that can generate revenue in the short term;
• In promising industries that can accumulate profits and capitalization in the long run.

The Central Bank is placed in the primary market at the time of issue. It is here that financial resources are mobilized. Issuers, investors, underwriters, FFMS are participants in this sector. In the secondary market, the Central Bank resales and directs capital into promising sectors. Here the market rate of assets is formed.

RZB Functions

• Redistribution of capital between the spheres of the economy.
• Insurance of financial risks by means of options and other derivatives.
• Accumulation of free funds.
• Investing in the economy.
• Capital flow to profitable industries.
• The function of "overheating investment." The value of securities is changing. After the rush demand comes capitalization of assets, the price goes back to the market.
• Providing information on the level of market development.

Emissive securities

This is the most common type of units in the market. Such securities fix the property rights of the owner, subject to assignment and unconditional exercise, in accordance with the procedure established by law; Appear as a result of release; Have equal rights regardless of the time of purchase.

The issuing securities are:

• Share - fixes the owner's rights to receive dividends, management of the organization, the share of property after the liquidation of the organization;
• Bond - confirms the right of the holder to receive from the issuer the nominal value of the Central Bank or other property within the agreed time limits;
• Option - fixes the right of the holder to buy / sell within a specified time a certain number of shares at a fixed price.

Emissive securities are issued in two forms, these are:

• Certificate in which the holder is indicated;
• Uncertificated form of equity securities - provides for fixing of owners in the register.

History of occurrence

The definition of the term "non-documentary securities" came from American law. In the 80s of the last century circulating, commodity and stock certificates with different legal regimes were used. In Art. 8-102 The UTC of the United States defines the concept of securities in a non-documentary form: it is a share for participation in the issuer's property that is not represented by another document, and its transfer is registered in special books.

The first "dematerialized" certificate France. Legislation of the country since 1984 has fixed such an opportunity in relation to shares and bonds. In Germany, a special law allowed the issuance of "global certificates".

The securities market in Russia

With the development of information technology, the form of confirmation of the property right with the documentary has been changed to electronic. Such certificates are also referred to as securities, but they are subject to legal property rules. This securitization trend reflects well the mobility of financial relations. The turnover of "dematerialized" securities is fixed art. 142-149 of the Civil Code of the Russian Federation. The issuer, having obtained a license, can fix the rights with the help of electronic computers. The procedure and rules of these operations are regulated by law.

Non-documentary securities are electronic documents. The law defines the procedure for fixing, confirming and making transactions on them. Responsibility for the safety of records is borne by the person who updated the register. It also constitutes a "decision on the issue of the Central Bank," and registers it with state authorities. This document certifies the right of the owners. It is made in triplicate. One remains with the owner, the second is attached to the registry, and the latter is transferred to the repository.

The peculiarity of such documents is that the issuer's obligation is expressed in the form of a record on a special account of the "depot", which contains all the necessary requisites. In this form, the law allows the issue of shares and bonds. But the issue of bills, carried out in this way, is prohibited.

Problems of circulation

Domestic legislation was also allowed to use "dematerialized" securities. AO during emissions should only register their issue in books, and may not be spent on the preparation of forms. State short-term bonds are another example of non-documentary securities. The law permits the issuance of all types of certificates in this form. But there is no legal regime for the regulation of disputes over them. All issues are resolved on the basis of the provisions of Art. 28 FZ "On RZB", which states that the ownership of such objects passes in the same way as on things.

Legal Aspects

In American law, the object of ownership is the rights themselves. For Russian legislation, this approach is unacceptable. In American law there is no concept of obligation. Therefore, automatic transfer of these interpretations and regulations to the domestic market is impossible. The purchase and sale of securities should be regulated, based on the already established rules of law.

Prior to making changes to the CG RF, issues of issue were regulated by the "Regulation on the Issue of the Central Bank" No. 78. This document provided for the possibility of the existence of certificates in the form of records on the accounts. The new concept of securities from the Civil Code provides that the main purpose of the document is to fix certain property rights. Their transfer is possible without a certificate. In Art. 149 CC states that the rights to securities are fixed in a special register. And this already makes sense of one of the functions of this tool.

Analyzing these norms of the law, we can conclude that non-documentary securities are property rights, which can be certified according to the general rule or by fixing a record in the register.

Ways to solve the problems of domestic RZB

1. Redistribution of share holdings, the direction of cash resources for the restoration and development of production in Russia.
2. Overcoming political instability, economic crisis.
3. Improvement of legislation.
4. Enhancing the role of the state: the final choice of the model of the functioning of the stock market, identifying sources of replenishment of the budget, the formation of an effective system of supervision.
5. Protection of investments in documentary and non-documentary securities.
6. Development of depository, clearing and agent networks, which record the movement of documents.
7. Expansion of the volume of information on the activities of issuers. Creation of a common system of market assessment indicators, the introduction of ratings, the development of a network of publications that specialize in certain sectors of the economy as investment objects.

Features of the European model

The American market is the most developed in terms of infrastructure, profitability, capitalization, turnover, liquidity. The regulatory framework was laid down after the economic crisis of the 1930s. last century. At the same time, the concept of money management was revised. The laws "On the Central Bank" (1933), "On the Stock Exchange" (1934) and other acts entered into force. Therefore, to date, non-documentary securities freely turn into the United States.

The Western European market functions more efficiently than the domestic one, although it is inferior to the American market. This is the great merit of the mega-regulator, his well-established work. Each sector of the financial market performs a certain list of functions. And in the case of a shortage of capital, there is a redistribution of resources. All these actions are regulated by the relevant ministries (finance and economy).

Trends in the Development of World Securities Markets

• Concentration of assets is the concentration of capital among professional participants on the world's largest stock exchanges. As a result, the reliability of certificates and bidding organizers is increased.
• Globalization is the rapid growth of CB issues.
• Computerization of the market - the use of new technologies, their constant updating, provision of communication facilities available to any investor.
• The strengthening of state regulation is conditioned by the need to protect the rights of investors, improve the reliability of documents, issuers, the transparency of the functioning of stock exchanges, the safety of computer data processing systems.
• Introduction of Internet technologies.
• Distribution of new tools, systems and infrastructure.
• Securitization - the transfer of funds from traditional forms (savings and deposits) to the Central Bank, with the aim of combining illiquid assets and including them in circulation.
• Mergers and acquisitions by leading exchanges of their partners.

Nominal papers VS CB bearer

For some time all securities of the Russian Federation were regulated by the same legal acts. With the introduction of changes in legislation, the holder's right after the disappearance of the certificates was given an independent value. Such documents do not take on the properties of things, but change the way of fixation. As a result, there is a need to improve the protection of the interests of the owners. "Replacement" of paper carriers leads to the disappearance of classical personal certificates. The uncertificated form of bearer securities is unlikely to appear. A "dematerialized" warrants, though not prohibited by law (Article 149 GK), but will not be widespread. Therefore only paper securities remain uncertificated.

Conclusion

The securities market in Russia functions to ensure financial development of the economy. Certificates are in circulation in non-documentary form. In fact, this same share, which confirms the owner's contribution to the property of the enterprise, is recorded on the fact of transfer by entries in the registers.