17 May 2019
FOR THE FIRST TIME IN UZBEKISTAN, THE LAW DETERMINED THE MECHANISM AND THE SET OF TOOLS, WHICH ARE A BASE FOR THE DEVELOPMENT OF VENTURE FINANCING IN UZBEKISTAN.
THE GOVERNMENT OF UZBEKISTAN ON MAY 17, 2019 APPROVED "REGULATION ON THE ACTIVITY OF INVESTMENT AND MANAGING COMPANIES" FOR No. 414
Recall that according to the Decree of the President of Uzbekistan No. 5583 of November 24, 2018 until January 1, 2022, an experiment is conducted to study and evaluate the effectiveness of the activities of established investment and management companies.
The Regulation on the Activities of Investment and Management Companies, adopted by the Government of Uzbekistan, adds a number of specifics in this direction.
First, the criteria for evaluating the effectiveness of investment companies are defined:
increase profits;
ensuring the financial equilibrium of the organization in the process of its functioning and development;
ensuring the most effective ways to implement an investment strategy;
maximizing the welfare of the owners of the organization in the current and future periods.
Tasks of the investment company:
analysis and forecasting of market development;
development of strategic areas of investment;
project evaluation, current planning and management of their implementation;
investment portfolio formation;
preparation of decisions on withdrawal from the project and reinvestment of capital.
Secondly, the status of the management company is subject to mandatory fixation of this name in the constituent documents.
Management companies can independently finance a project or attract other investment companies for this. If several investment companies take part in financing, they independently determine the management company in the process on the basis of the contract.
The management company opens a special account to which the parties transfer their deposits within the framework of the investment contract, and accumulates the deposits of qualifying investors and investment companies on it.
Third, the main activities of venture funds:
accumulation of funds of legal entities and individuals (including foreign ones) for receiving profit from their subsequent investment in innovative activities;
financing the development and implementation of innovations through equity participation in the authorized capital of newly formed and existing organizations implementing innovative projects, as well as through the provision of investment loans to these organizations without collateral;
placement of free cash in the domestic market of highly liquid financial instruments;
participation in the management of organizations whose shareholder (participant) is a fund.
Venture funds that finance innovative projects in a particular sector of the economy are specialized, and various sectors are universal. In the name of the fund should be the words "venture fund". There is also a number of information that is mandatory reflected in the charter of the fund: restrictions on investment activities; the procedure for raising funds, making decisions about investing projects and withdrawing from invested enterprises; dividend payment procedure, etc.