The so-called depository law, which some say could doom the weak local capital market, is the latest in a series of rushed laws taking advantage of the final days of a rubber stamp parliament to secure various interests, experts say.
According to parliament’s website, Yanukovych signed the law on Sept. 24. It remains unclear what the final version looks like. The bill was repeatedly changed at various points throughout the legislative process. The version from the second reading reappearred on parliament’s website on Oct. 4 after having disappeared for 10 days.
The law proposes to create a national Central Securities Depository that would gain control over essential functions of the country’s financial market. It proposes to create the new entity on the basis of the National Depository of Ukraine, a state-run institution which currently covers 10 percent of the market. It will absorb the All Ukrainian Securities Depository, majority owned by market participants. A similar process will take place for the country’s clearing system.