Chairman of the National Bank of Kazakhstan Daniyar Akishev, speaking at a recent forum on corporate governance and new perspectives for the investment attractiveness of the state, stressed that the bank plans to offer a series of options for stock market development. He also questioned the reason for the existence of the stock market and the sharing of capital as a source for financing the economy and the redistribution of capital in Kazakhstan.
“We want to liberalise the market by establishing an alternative one,” explained Akishev.
According to his words, the benefits of an alternative market will include free access for all categories of investors and issuers, the absence of limits for operations as well as free pricing and the ability to obtain speculative income.
“The potential for retail investors is extremely large and has huge potential for its further expansion. It is important to use the experience of the first People’s IPO (initial public offering) programme in the upcoming privatisation process of state share holdings and organisations. The synergy effect will be provided if we involve governmental anti-crisis programmes and major state public relations campaigns of companies, which meet all the basic principles of corporate governance,” said the head of the bank.
He also stressed that relations between the state and business should be built in accordance with corporate principles.
“It requires the consolidation of the private sector, a reasonable motivation to switch companies to the corporate format and search for compromise approaches on liberalisation of the antimonopoly legislation. Further measures should also include the formation of additional economic benefits for investments due to the alignment of tax exemptions to both participation financing and bank deposits. In order to ensure the systematic nature of proposed measures, it is advisable to create new ways for high-risk investment or in other words, investment banking institutions. Compared to conventional banks, they will have more extensive investment strategy, but, at the same time, conduct a policy of adequate risk assessment of investments in shares or long-term debt in the real sector,” said Akishev.
According to the speaker, implementing corporate governance principles, increasing the reliability of financial reports and attracting qualified management should bring financial benefits without great cost.