Within the framework of the Securities Market Regulatory Update Program, amendments were made to the "Brokerage Company Licensing and Regulation Rules" approved by the Order of the President of the National Bank of Georgia N145.
The change mainly affected the requirements of brokerage companies' equity.
"In particular, for brokerage companies wishing to carry out activities specified in subparagraphs (a) to (d) of Article 23 of the Securities Law of Georgia (issuers and investors consulting, research), the minimum capital requirement has been reduced to 150,000 GEL and for those brokerage companies that are also providing other activities as due to Article 23 of the law, the requirement remains as in force today - 500 000 GEL.
It is noteworthy that such an approach to determining minimum capital is internationally established practice. The purpose of the changes is to promote a competitive environment in the securities market, to attract new players and to stimulate consulting and research.
