KEY RECOMMENDATIONS

Table 1. Key Recommendations from the Serbia Capital Market Assessment 2018
Recommendation Responsible agency Time
Capital market strategy
Prepare a capital market development strategy and action MoF, SSC, NBS, I
plan with a focus on: BELEX
• Supervisory and exchange measures to improve
confidence in the capital markets;
• A strategy on growing and attracting issuers;
• A roadmap to comply with EU objectives; and
• Ways to grow the investor base.
Demand (investor base) and supply
Conduct diagnostics for pension and insurance market NBS, MoF I
development
Consider increasing investment funds’ investment limits MoF, SSC NT
in Serbian government securities
Improve public awareness of VPFs MoF, MoLEVSA, NT
NBS
Review tax procedures for foreign investors MoF, SSC NT
Identify ways to grow and develop the corporate sector MoE, MoF C
Money markets
Assess repo market development after the implementation NBS NT
of the Law on Financial Collateral
Review BELIBOR rules; request firm quotes from panel ASB, ACI Serbia I
banks
Support development of FX derivatives with the MoF, NBS MT
development of reliable short-term reference rates
Government securities market
Improve the predictability of the primary market PDA NT
operation; adhere to the auction calendar
Calculate and publish official yield curve daily PDA I
Separate secondary market trades from the settlement of PDA I
primary auction deals
Introduce regular liability management operations PDA I
(buyback and/or switch)
Non-government securities market
Provide the same tax treatment for non-government MoF NT
securities as for government securities
Simplify tax procedures; reduce administrative burdens MoF NT
Assess options for facilitating and supporting IPOs of BELEX, MoF, SSC MT
private sector corporates
Improve financial literacy of individuals and capital BELEX, MoF, SSC MT
market awareness of corporates
Consider strategy to resolve dormant accounts CSD, MoF, SSC MT
Derivative markets
Amend tax regulation of IRS transactions MoF NT

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 Regulatory and supervisory framework
Continue implementing a risk-based supervision and SSC I
enforcement framework of the market and its actors
(including funds), using both off and on site
Adopt a risk-based approach to capital adequacy SSC I
requirements
Adopt in-depth and risk-based supervisory processes for SSC NT
reviewing issuer financial and non-financial information
Better inform the public on the recognised collateral SSC I
management rules (e.g. clarify their scope and how
automatic contractual netting arrangements operate under
Serbian law)
Request post trade timely reporting of transactions SSC, BELEX NT
executed on lite and dark market, and OTC
Consider enforcement of sales or purchases of financial SSC NT
instruments to disincentivize failed transactions in the
clearing and settlement system
Consider enhancing the use of credit rating of local SSC, BELEX NT
companies and credit rating referral for managers
Enhance transparency by expanding on-line availability SSC NT
of, among others, previous regulations, regulatory
consultation processes, internal compliance structure of
the SSC, availability of ombudsman services, and on-
going work by the SSC
Time Frame: C = continuous; I (immediate) = within one year; NT (near term) = 1-3 years; MT (medium
term) = 3-5 years.

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