State regulation of the securities market- ordering on it, authorized state bodies, participants and the operations taking place between them. Participants can be: issuers, investors, professional fund intermediaries.
In general, market regulation is internal andexternal. Internal regulation is carried out through its own regulatory documents of the organization (charter, rules and other regulations governing the activities of the organization).
External regulation arises under the influence of state legal acts, regulatory documents of other organizations, international agreements.
State regulation of the securities marketis carried out in all types of activities and transactions occurring on it: investment, issuing, speculative, intermediary, trust, collateral, etc.
The state is:
- issuer, issuing government securities;
- an investor, in the event of a large portfolio of shares in an industrial enterprise;
- a professional participant at a privatization auction when trading shares;
- by the regulator, through legislative acts;
- the supreme arbiter in the disputes of market participants through the courts.
State regulation system of the market includes: normative acts and state bodies that carry out regulation and control.
State regulation of the securities marketcan be carried out in an administrative form. In this case, mandatory requirements for participants are established, registration of securities and market participants, licensing of professional activities, ensuring publicity and equal awareness of participants, maintaining law and order.
State regulation of the securities marketcan be indirect, through economic levers, through the system of taxation, monetary policy, state ownership and capital. The structure of the bodies that regulate securities has not developed to date.
State regulation of the currency market - the activities of state bodies to establish rules for the circulation of currency values.
They include foreign currency, that is,banknotes of foreign states, in the form of treasury notes, banknotes, coins, as well as cash held in bank accounts, securities in foreign currency.
In order to regulate the foreign exchange market,the state exercises currency control, which is understood as the activity of state bodies, in order to ensure compliance with foreign exchange legislation by residents and non-residents.
The state regulates the exchange rate, whichcan be direct and indirect. In the first case, the instruments are: discount policy, foreign exchange control, foreign exchange interventions and restrictions. In the second: the discount rate, money issue, etc. Manipulating the magnitude of the exchange rate use devaluation and revaluation. Devaluation - lowering the exchange rate of the country. Revaluation is, on the contrary, an appreciation of the national currency. Revaluation is a method of stabilization after inflation of domestic money circulation.
State regulation of the money market.
The state in the money market, through regulatoryacts, sets rules that are binding on all its participants, exercises control over their activities. The state is an agent in the financial markets, a participant in market transactions, by decision-making, influences the market situation, regulates the demand and supply of money. The state makes regulation with the help of monetary policy.
