Permission to Register “KHAN BANK” IPO GrantedEconomy
Ulaanbaatar /MONTSAME/. The 23rd regular meeting of the Financial Regulation Commission (FRC) was held on 09 December 2022.
At the meeting, the FRC decided to register “KHAN bank” IPO and granted permission to trade in the primary market. The “KHAN bank” is the third bank among systemically important banks within the framework of the banking reform. The issuance of “KHAN bank” IPO is an example of the successful implementation of the Amendment to the Banking Law, and the reform in the bank and financial sector. “KHAN bank” LLC accounts for more than 30% of the total assets of the banking sector and is considered the largest among systemically important banks in terms of total assets and equity. With its successful IPO issuance, the number of new financial products with high quality and liquidity will be increased, which lead to activating the capital market, increasing securities trading, and improving liquidity.
The Law on Permitting (revised) will entry into force from 01 January 2023. Accordingly, it was agreed to amend the following regulations adopted by the FRC, in line with the regulations and standards for resolving applications for permission. The regulations are:
- Annex 1. Regulations on
Permission to Operate in the Securities Market (revised) of the Package
Regulations of Securities Market;
- Terms and Conditions for Savings and Credit Cooperatives;
- Other rules and regulations that are applicable to the regulatory areas of FRC.
In the revised Regulations on Permission to Operate in the Securities Market, terms and conditions for permission of custodians and financial strength rating activities are stipulated.
In addition, the FRC registered asset-backed securities of a company and granted a license for issuing asset-backed securities, two licenses for insurance intermediaries, and a license for a real estate brokerage. It was also decided to make changes in the shareholder’s composition of a company and register the closed bonds of three non-bank financial institutions.