On the issue of investment analysis of the securities market (ფასიანი ქაღალდების ბაზრის საინვესტიციო ანალიზის საკითხისათვის)

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Ivane Javakhishvili Tbilisi State University Press
The development of the securities market is associated with the country’s investment climate, which is determined by the investment potential and the level of investment risk. Increased investment in the economy – is a vital task for Georgia, at the same time, the potential for savings by the population is small due to low incomes. At the same time, the population does not trust the institutions of the stock market, therefore, saving money is a big part of the savings (the instrument of collection is the US dollar). Due to the specifics of the Georgian securities market, the variety of investment is limited, improper development of the corporate securities market, low liquidity and guarantees of joint stock companies. The role of the regulator represented by the National Bank is not homogeneous. The refinancing rate does not ensure the redistribution of funds in the real sector of the economy; it plays a regulatory role in the level of interaction between various sectors of the financial market (the interbank lending market, the foreign exchange market and the government securities market). It is a fact that during the period when the regulator of the securities market was not the National Bank of Georgia, but the National Securities Commission, the stock industry developed in an upward direction, and the progress achieved in this direction was noticeable - activity on the Georgian Stock Exchange, activities of brokerage companies. By now, significant steps have been taken to develop the securities market. Some of them, such as the creation of the GSSS system, the entry into the country of the International Central Securities Depository, which we talked about, these measures also include the issuance of securities denominated in Gel by international financial institutions, amendments to the Tax Code, this includes tax breaks related to the taxation of credit and equity financial instruments. Interestingly, for the first time in Georgia, depository certificates were issued, the National Bank of Georgia receives securities in Gel to ensure monetary transactions. The issuers are EBRD, ADB, IFC, FMO, BSTDB, as well as Georgian issuers, which have been assigned the lowest rating among the publicly available ratings from leading international rating agencies (Fitch, S&P, Moody’s, Scope Ratings). Our recommendation is to eliminate the asymmetry between the banking sector, which holds a dominant position, and the stock market on the basis of further improvement of the legislation, among them, the restoration of a record in the securities market in the law, according to which public securities can only be traded on the stock exchange, As well as further improvement of the infrastructure of the securities market.
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Securities market, investment portfolio, “confidence indices”, institutional investors
Economics and Business, №3, 2021, pp. 118-126