State regulation of the securities market - streamlining on it, by authorized state bodies, participants and the operations between them. Participants may be: issuers, investors, professional stock intermediaries.
In general, market regulation is internal and external. Internal regulation is carried out through the organization’s own regulatory documents (articles of association, rules, and others that govern the organization).
External regulation arises under the influence of state legal acts, regulatory documents of other organizations, international agreements.
State regulation of the securities market is carried out in all types of activities and operations occurring on it: investment, issue, speculative, intermediary, trust, mortgage, etc.
The state is:
- by the issuer, issuing government securities;
- an investor, if there is a large portfolio of shares in an industrial enterprise;
- a professional participant in a privatization auction in the sale of shares;
- by the regulator, through legislative acts;
- the supreme arbiter in the disputes of market participants through the courts.
The system of market regulation by the state includes: normative acts and state bodies that carry out regulation and control.
State regulation of the securities market may be carried out in an administrative form. At the same time, mandatory requirements for participants are established, securities and market participants are registered, professional activities are licensed, participants are made public and equally informed, and the rule of law is maintained.
State regulation of the securities market can be indirect, through economic leverage, through a system of taxation, monetary policy, state ownership and capital. The structure of the bodies regulating securities has not yet developed.
State regulation of the foreign exchange market is the activity of government agencies in establishing rules for the circulation of currency values.
These include foreign currency, that is, banknotes of foreign states, in the form of treasury bills, banknotes, coins, as well as cash held in bank accounts, securities in foreign currency.
In order to regulate the foreign exchange market, the state exercises currency control, which is understood as the activity of state bodies, in order to ensure compliance with currency legislation by residents and non-residents.
The state regulates the exchange rate, which can be direct and indirect. In the first case, the tools are: discount policy, control of foreign currency, foreign exchange interventions and restrictions. In the second: discount rate, money issue , etc. Manipulating the value of the exchange rate using devaluation and revaluation. Devaluation - depreciation of the country's currency. Revaluation is the opposite of an increase in the national currency. Revaluation is a method of stabilization after inflation of domestic money circulation.
State regulation of the money market.
The state in the money market, through normative acts, sets the rules binding on all its participants, exercises control over their activities. The state is an agent in financial markets, a participant in market operations, by making decisions, affects the market conditions, and controls the supply and demand of money. The state makes regulation through monetary policy.