Securities Market Development in Mongolia - Chapter 9

On 18th January 1991, the Mongolian Stock Exchange (MSE) was established for the purpose of privatization of state-owned enterprises and organizing securities to be traded further. So far, a total 476 state organizations have been transformed into private companies (fully or partly privatized). As a result, 48% of the population (over 1.1 million individuals) became stockholders during February 1992 to August 1995, which developed the primary market in Mongolia. With respect to the secondary market, stock trading started on 28 August 1995, when the MSE took an important role in activating the stock market and gave an opportunity for citizens to trade their stocks via brokerage firms. Mongolia is currently in the process of developing a modem trading market structure and regulatory system for its emerging securities market that will attractive to both Mongolian and foreign investors. The Government is also taking a number of steps to strengthen state-owned stock trading, to improve the regulatory framework of the Mongolian capital market and to protect public investors and shareholders.