Integrity, compliance verification of chairman, members of NSSMC extended for month – Arrangement with IMF
The International Monetary Fund (IMF) has launched a verification of the chairman and members of the National Securities and Stock Market Commission (NSSMC), and also postponed its completion date from the end of June to the end of August 2025.
"It is based on an updated Code of Ethics prepared in consultation with the World Bank and adopted as part of IOSCO standards implementation and includes new conflict of interest rules. The procurement process has unfortunately resulted in repeated delays starting the review, which is now underway, and staff are monitoring progress," according to the Eighth Review of the Extended Fund Facility (EFF) Arrangement of the IMF released by the Fund on Tuesday.
It explains that in order to tighten restrictions on capital movements, the NSSMC issued a resolution in the middle of June 2025 requiring that transactions with over-the-counter foreign currency bonds carried out by non-bank institutions be conducted through the Settlement Center.
"The NSSMC is gradually working to strengthen governance and operational capacity in preparation for implementation of the IOSCO Principles. An independent fit and proper review of the NSSMC commissioners, after some delay, is finally underway and to be completed before the deadline. It is based on an updated Code of Ethics prepared in consultation with the World Bank and adopted as part of IOSCO standards implementation and includes new conflict of interest rules," the IMF said, noting that the challenges are significant.
The organization explains that obstacles include difficulties in attracting new staff, in particular given the level of salaries, the need to train new staff, and the significant workload associated with financial market infrastructure reforms needed to support recovery and reconstruction.
The IMF also required the NBU and the NSSMC to prepare by the end of October 2025 a priority plan for financial market infrastructure reforms in consultation with international financial institutions (IFIs) and other stakeholders, which will be aimed at maximizing the use of opportunities to attract private capital.
The roadmap is expected to identify measures for further coordination and development of public, private and public-private projects, interaction with the industry on market instrument reforms, prioritization of new market instruments, in particular securitization, covered bonds, syndicated loans, sub-participation in loans, as well as reform of existing investment mechanisms (including joint investment vehicles) and credit instruments (such as factoring and leasing). In addition, by the end of August 2025, the NSSMC is to approve the updated Unified Project Portfolio for Public Investments, and also prepare legislative proposals to bring securitization and bonds into line with international standards by the end of March 2026.