https://doi.org/10.56079/20223/9

     Financial market is institutionally represented by the financial system. The segments of the decentralized financial system correspond to the sectors of the financial market. Financial relations are formed outside the financial market - in the form of a public financial system.

 The structure of the decentralized financial system is the relationship between the banking sector and liquid securities markets. The financial structure as a source of ways and mechanisms of economic development is the subject of discussions.

    In recent years, there has been an increase in the convergence of sectors of the financial system. The financial structure continues to transform.

The principles of regulation are the main basic on which the practical actions of the state to regulate the securities market should be based. In contrast to state regulation of the market as a whole, that is, regulation of macroeconomic processes, regulation of the securities market is predominantly administrative in nature.

The article expresses an opinion on the expediency of restoring the fundamental entry in the Law of Georgia “On the Securities Market”, according to which trading in government securities is allowed only on the stock exchange; The need to protect the interests of minority investors, greater transparency of information about issuers, regulated participants, large investors is also emphasized.

The market regulation system is formed under the influence of problems that accumulate and require solutions. The regulation of the securities market by the state is explained by the role played by this market and the desire to increase the reliability of the market and the level of confidence on the part of all its participants. Regulation of the stock market by the state will be supplemented by regulation by self-regulatory participants.

Public regulation (regulation through public opinion) is also very important. The reaction of the population to any action on the securities market is the primary reason for initiating this or that regulatory action on the part of the state or market professionals. The development of the securities market in Georgia will be facilitated by a deeper discussion of the mentioned market problems and ways to overcome them.

The article highlights the modern trend of creating stock groups in the securities market; The impact of the Covid pandemic on the stock markets is shown; The different situation in the world is analyzed in terms of creating a system of financial market regulation.

Currently, the banking system is the dominant sector of the financial market in Georgia, which has been determined by the policy of the National Bank of Georgia for a long period of time. It is no so important which body should play the role of a regulator - the NSC or the National Bank - the determining factors are the will of the (financial) authorities, the methodology of supervision and the qualifications of the staff.    

Keywords:  securities market, principles of regulation, Regulatory system, IOSCO.

JEL Codes: L26, L32, M14