MACEDONIAN STOCK EXCHANGE
Evgeni Zografski
CEO
MACEDONIAN STOCK
EXCHANGE AND
CORPORATE
GOVERNANCE
SOUTH-EASTERN EUROPE
CORPORATE GOVERNANCE ROUNDTABLE
OHRID,JUNE 2004
LEGISLATION








HIGH LEVEL OF COMPLIANCE WITH IOSCO
PRINCIPLES
REGULATION CLOSER TO EU INVESTMENT
DIRECTIVES
ESTABLISHED LEGAL FRAMEWORK
INDEPENDENT REGULATOR (SEC)
TWO SRO’S (MSE JSC DEMUTUALIZED;CSD
MEMBER OWNED JSC)
MODERN ELECTRONIC TRADING SYSTEM (BEST)
FULL SECURITIES DEMATERIALIZATION
EFFICIENT SYSTEM OF CLEARING AND
SETTLEMENT
LEGISLATION




NEW INSTITUTIONAL FRAMEWORK
IN 2004
DEFINING PUBLICLY HELD CO. (188
JSC)
MANDATORY DISCLOSURE
NEW LISTING REQUIREMENTS ON
MSE
CHARACTERISTICS OF THE
MACEDONIAN CAPITAL MARKET
PRIMARY MARKET


UNDERDEVELOPED
NO IPO ON MSE SO FAR
SECONDARY MARKET





SECONDARY PRIVATIZATION THROUGH MSE
CONCENTRATION OF OWNERSHIP THROUGH
MSE
STILL IN INITIAL STAGE OF DEVELOPMENT
MANDATORY LISTING FOR CO.THAT FULFILL MSE
LISTING REQUREMENTS BY THE END OF 2004
MARKET OF COMPANIES DOMINATES OVER
MARKET OF SHARES
CHARACTERISTICS OF THE
MARKET
OFFICIAL MARKET
(MANDATORY LISTING FOR CO.BY THE END OF 2004)
 58 LISTED COMPANIES (MARKET CAPITALIZATION 300
MILL. €; 7% OF GDP)
 THE MARKET VALUE OF LISTED COMPANIES INCREASED
35% (AROUND 1/3 OF THE NOMINAL VALUE)
 4 GOVERNEMENT BONDS AND 1 CERTIFICATES (MARKET
CAP.340 MILL. €)
UNOFFICIAL MARKET



MANDATORY TRADING OF ALL SECURITIES TROUGH MSE
BY THE END OF 2004
110 PUBLICLY TRADED COMPANIES
PRIVATIZATION OF GOVERNMENT RESIDUAL SHARES (70
RESIDUAL SHARES TO BE OFFERED BY THE END OF 2004)
TRANSPARENCY & DISCLOSURE




INFLUENCE FROM THE PAST
CLOSELY HELD CO.TO ACT AS
PUBLICLY HELD CO.
ENSURING EFFECTIVE DISCLOSURE
IS KEY TARGET/OBSTACLE
PUBLICLY HELD CO.TO BECOME
AWARE THAT THEY COULD BENEFIT
FROM THE PROPER DISCLOSURE
TRANSPARENCY & DISCLOSURE
DISCLOSURE OF LISTED COMPANIES:
 AUDITED
ANNUAL REPORTS;
 SEMIANNUAL UNAUDITED REPORTS;
 QUARTERLY UNAUDITED REPORTS;
TRANSPARENCY & DISCLOSURE
DISCLOSURE OF LISTED COMPANIES:








DISTRIBUTION OF THE NET-PROFIT
DIVIDEND CALENDAR
CHANGES IN THE MANAGEMENT
CHANGES IN THE CAPITAL STRUCTURE
CONTRACTS, LOANS, AWARDS, LICENSES, ISO
CERTIFICATES
DECISIONS OF THE GENERAL ASSEMBLY
DECISIONS FOR BUY-BACK
NEW ISSUES OF SECURITIES
TRANSPARENCY & DISCLOSURE

DISCLOSURE OF LISTED COMPANIES



Denials of price-sensitive information
Shareholders with more than 10% of
outstanding shares and every further
acquire of more than 5%
Yearly information about the
percentage of shares owned by the
management
TRANSPARENCY & DISCLOSURE
DISCLOSURE OF PUBLICLY-HELD
COMPANIES:

Quarterly information:





Semiannual information:


General data
Changes in equity
Legal status
Price sensitive information
Semiannual unaudited report
Annual information:

Audited annual report
TRANSPARENCY & DISCLOSURE
EFFECTS OF MANDATORY LISTING:
 Higher transparency:




Financial statements of 80 companies
published
78 price sensitive information of 42 companies
published
Greater protection of the minority
shareholders
More efficient implementation of the
principles of corporate governance
TRANSPARENCY & DISCLOSURE



22 delisted companies in 2004
Due to lack of transparency, 19 companies
were delisted in 2004
Number of listed companies as of May
31,2004: 58
DISSEMINATION OF INFORMATION



All price sensitive information are available on
the MSE web page (in 5 months of 2004 over
20,000 visits of the MSE web; 56,000 page
views;7,000 unique visitors)
Brokerage houses are informed of all price
sensitive information trough BERZA –NET
Vendors (Reuters;Bridge)
FUTURE PROSPECTS
MSE CODE OF CORPORATE
GOVERNANCE
TO BE DRAFTED BY THE END OF 2004
(WITH ASSISTANCE OF DUTCH GOVERNAMNET AND
USAID CG&CL PROJECT)
 IMPLICATION ON LISTED CO.
 IMPACT ON THE PROCESS OF CG

MACEDONIAN STOCK EXCHANGE Inc. SKOPJE
E-mail:mse@mse.org.mk; www.mse.com.mk