NSSMC proposes to simplify the registration of private share placements: businesses will be able to attract investment faster

The National Securities and Stock Market Commission drafted a law that simplifies the registration procedure for private placements of shares and brings Ukraine’s capital market infrastructure in line with European practices.

The document stipulates that, in certain cases, the Central Securities Depository will register share issues. This primarily applies to private placements of shares among a predetermined group of investors, where the number of non-qualified investors does not exceed 150, and payments are made exclusively in cash.

Currently, when issuing shares, a company interacts with several institutions at once: the NSSMC, the Central Securities Depository, and state registrars. The draft law proposes a “single window” approach, whereby a significant portion of the procedures will be carried out through the Central Securities Depository. This will reduce processing times and the administrative burden on businesses. Such approaches are already in use in a number of EU countries, including Germany, France, and Italy.

In addition, the draft law provides for the option of submitting documents through the Central Depository for the state registration of joint-stock companies and for making changes to their authorized capital in electronic form.

“Our goal is to make the Ukrainian capital market faster, more modern, and more transparent for businesses and investors. If a company raises capital from a specific group of investors, it should not have to go through excessive bureaucratic procedures. We are implementing European approaches and creating conditions under which attracting investment in Ukraine will be simpler and faster,” said Oleksii Semeniuk, Chairman of the NSSMC.

The draft law does not require additional spending from the state budget and is aimed at developing the capital market, improving the investment climate, and simplifying businesses’ access to financing.

The implementation of the proposed changes is expected to shorten the time required to register a stock issue and make the process of raising capital more efficient and convenient for Ukrainian companies.