47
Volume 04 Issue 01-2022
The American Journal of Political Science Law and Criminology
(ISSN
–
2693-0803)
VOLUME
04
I
SSUE
01
Pages:
47-51
SJIF
I
MPACT
FACTOR
(2020:
5.
453
)
(2021:
5.
952
)
OCLC
–
1176274523
METADATA
IF
–
7.659
Publisher:
The USA Journals
ABSTRACT
This article is aimed to study of trends in the development of securities market law in the Republic of Uzbekistan. The
author analyzed the theoretical foundations of the securities market law as a complex branch of law and studied the
experience of foreign countries in this area. Also, in the article the author analyzes the connection between the
securities market law and other branches of law, such as civil law, financial law and corporate law.
KEYWORDS
Securities, shares, securities market law, legal relations, securities transactions, development, stock exchange, branch
of law.
INTRODUCTION
Nowadays, it is impossible to imagine the structure of
the financial market of any developed country without
the securities market, which in some of them even
plays the most crucial role. Also, the securities market
in the modern world accounts for a significant part of
the gross domestic product of these mentioned
countries. For this reason, our country has also paid
considerable attention to the development and
support of this part of the financial market in recent
years. Although the securities market of the Republic
of Uzbekistan has been alive for many years. However,
it remains not relevant and not interesting for potential
Research Article
SECURITIES MARKET LAW AS A NEW COMPLEX BRANCH OF LAW IN
THE REPUBLIC OF UZBEKISTAN
Submission Date:
January 09, 2022,
Accepted Date:
January 20, 2022,
Published Date:
January 30, 2022
Crossref doi:
https://doi.org/10.37547/tajpslc/Volume04Issue01-08
Batirova Kamolakhon
Lecturer of the Business law department of Tashkent state university of law, Uzbekistan
Journal
Website:
https://theamericanjou
rnals.com/index.php/ta
jpslc
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
48
Volume 04 Issue 01-2022
The American Journal of Political Science Law and Criminology
(ISSN
–
2693-0803)
VOLUME
04
I
SSUE
01
Pages:
47-51
SJIF
I
MPACT
FACTOR
(2020:
5.
453
)
(2021:
5.
952
)
OCLC
–
1176274523
METADATA
IF
–
7.659
Publisher:
The USA Journals
investors and issuers themselves. However, at the
present stage, the development of the market is
brought up at the level of state policy. A bright
example of these words is organization of the
Tashkent International Financial Center (TIFC) with the
support of the British government .
Also, the Uzbek government has adopted laws and
regulations with the aim of eliminating weaknesses
and developing the national market in recent years.
Nowadays, Uzbek securities market is regulated by
over 50 legal acts, adopted by different government
bodies. However, these efforts remain one-sided, as
the theoretical foundations of securities regulation are
not studied at all by legal scholars. Although, if you look
at the experience of foreign countries, the theoretical
basis of this branch of law is actively developing in
parallel with the practical aspect and is even
considered independent. Although this branch of law
is named differently in academic papers of various legal
scholars: securities law , securities market law, stock
exchange law , capital market law , corporate finance
law .
In our opinion, this variation in the name of the industry
is explained by the difference in legislation and the
specific practice of the securities market of the
authors' countries of origin.
As far as our national legal system is concerned, it is
more appropriate to introduce such a variant of the
ones as mentioned above as "Securities Market Law".
Several reasons contributed to this choice:
Analyzing uzbek securities market, there is
significant role of Over-The-Counter Market,
because only almost one-fifth of the national joint-
stock companies sell their shares on the stock
exchange (the total number of JSC Uzbekistan –
603 , number of publicly traded joint stock
companies– 139 , also confirming the fact is, not
only the number of listed companies but also
figures for the last 9 months, the volume of OTC
transactions has accounted for 874,13 billion, while
on the stock exchange, the volume of securities
transactions has reached 975,0 billion)
Uzbek national securities market includes both
corporate and government securities, for this
reason, it would not be quite correct to concern in
only the legal relations with corporate financial
instruments as the subject of the field, called of the
industry, "Corporate Finance". which abroad not
only regulates the relations connected with
securities and other financial matters of the
company;
The branch of law regulates relations not only on
securities but also indirect legal relations: between
the issuer and the investor, the owner , the status
and relations of professional participants, etc. For
this reason, the name "securities law" would make
the circle of relations very narrow.
Also, in this issue, it is necessary to pay attention to the
presence of two very similar concepts: the stock
market and the securities market, since in the correct
naming of the industry it is necessary to start from the
concept itself. According to many scientists, these
concepts are equivalent and can be used as synonyms.
However, there is a different point of view about the
meaning of these terms. One example of this approach
in differences is the opinion of the Ukrainian economist
A. A. Peresada, who believes that the securities market
consists of two parts : the stock market and the sphere
of securities circulation in the form of purchase and
sale of short-term (up to one year) documents. Thus,
according to this author, the concept of the securities
market is broader than the concept of the stock
49
Volume 04 Issue 01-2022
The American Journal of Political Science Law and Criminology
(ISSN
–
2693-0803)
VOLUME
04
I
SSUE
01
Pages:
47-51
SJIF
I
MPACT
FACTOR
(2020:
5.
453
)
(2021:
5.
952
)
OCLC
–
1176274523
METADATA
IF
–
7.659
Publisher:
The USA Journals
market. At the same time, the special role of the stock
market in the development of market relations is noted
since it is on it that stocks and bonds are traded. It is no
coincidence that most foreign and domestic experts'
research and mathematical justifications are devoted
to the stock market.
The securities market law has a close connection with
many other branches of law. However, according to
the results of comparative analysis, the securities
market law has a more practical character than other
branches of law. And this utilitarian side of this field
helps to facilitate the process of making rational
decisions for any company in the securities market. It is
based on essential rules that exist in traditional areas
of law. According to Petri Mantysaari, for the legislator,
each of the traditional areas of law has its functions
and aims, and the legislator's preferences in one area
(say, corporate law) do not necessarily coincide
significantly with his preferences in another area (for
example, financial interests), because the relevant
interests vary depending on the context .
The securities market law has all those features of a
complex branch of law that distinguish it from an
independent branch and sub-branch of law. Securities
market law and other complex branches connect
various institutions of specialized branches such as
environmental, information, and business law.
This branch includes institutions of both public and
private law, such as financial law, civil law, corporate
law, and business law.
Some legal relations are related to the turnover of
government securities, then in this case, there are also
public legal relations regulated by financial law. The
role of administrative law in regulating such relations
in the securities market is also clearly expressed.
According to E.V.Zenkovich, the specifics of
administrative property relations in the securities
market may consist in the participation of public legal
entities and public authorities acting on their behalf in
property (civil) turnover and consolidation by bylaws
(in addition to the Civil Code). of the Russian
Federation and legislative acts) of certain advantages
over other participants in civil traffic .
On the other hand, it is impossible to deny the
existence of property relations, which are closely
regulated by the branches of private law. For example,
securities transactions are the part of civil law. To be
more precise, these are public legal relations that arise
between equal participants in the securities market
and have equal rights and obligations, the subject of
which is such financial instruments as securities.
Among the features that distinguish civil legal relations
from other types of legal considerations, O. S. Ioffe
also refers to: the method of protecting civil rights, the
grounds for the emergence of civil legal concerns, the
civil-dispositive nature of norms, and unique ways to
terminate a legal relationship.
The role of civil law in the institution of transactions
with securities is that all those transactions concluded
on the securities market must meet the requirements
of this branch of law. However, this fact does not
detract from the uniqueness of such transactions.
Unlike other civil transactions, securities transactions
have their characteristics, which are not at all the
subject of civil law. For example, by their legal nature,
such transactions require the participation of financial
intermediaries, or shares transactions of listed
companies must be concluded only through the
exchange.
To a greater extent, such an independent branch of law
as corporate law also impacts our studied branch of
law. Analysis of trends in legal relations on the national
securities market proves that corporate law
50
Volume 04 Issue 01-2022
The American Journal of Political Science Law and Criminology
(ISSN
–
2693-0803)
VOLUME
04
I
SSUE
01
Pages:
47-51
SJIF
I
MPACT
FACTOR
(2020:
5.
453
)
(2021:
5.
952
)
OCLC
–
1176274523
METADATA
IF
–
7.659
Publisher:
The USA Journals
establishes the beginning of the above-mentioned
legal relations. Corporate law acts, in this case, as a
kind of progenitor of legal concerns related to
securities, since the evolution of corporate
associations and corporations, in general, has
contributed to the emergence and development of the
securities market. In addition, corporate relations are
complicated by such legal categories as shares, which
are objects of the securities market.
Based on the analysis of connection and mutual
influence between corporate law and securities
market law, it is necessary to list examples when legal
relations include institutions of both branchs:
1.
Acquisition of the "Publicity" status by the
joint-stock company. In this case, a joint-stock
company becomes public through an initial public
offering. That is, its shares become available for
purchase on the stock exchange.
1.
One-sided or cross-ownership of shares.
2.
Protection of the rights and legitimate
interests of shareholders, as well as minority
shareholders.
3.
Exercise of rights to shares on the securities
market.
4.
Procedure for transferring rights to shares.
Summarizing all of the above, we can say that the
Republic of Uzbekistan intends to develop the national
securities market and, for this purpose, is developing a
regulatory and legal framework. However, it is
impossible to present development from a legal point
of view only in a practical aspect. For this reason, the
article notes the significant role of the study of the
theoretical foundations of the law of the securities
market. And on the basis of everything, we propose to
introduce securities market law as an optional subject
for law students.
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The American Journal of Political Science Law and Criminology
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Pages:
47-51
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