The Financial Regulatory Commission has made significant revisions to the investment fund regulations in recent years, aiming to enhance the legal framework and align it with international standards. These revisions have opened up new avenues for introducing innovative investment products to the Mongolian capital market.

In this regard, there is a need to make appropriate changes to the relevant regulations of the "Mongolian Stock Exchange" JSC and to develop new regulations for exchange-traded funds, which are financial instruments commonly used in the international capital market.

"Mongolian Stock Exchange" JSC developed and approved the new "Regulation for registration of exchange-traded funds" by the Board of Directors Resolution No. 48 dated December 7, 2023. The regulation was approved by Order No. 04 dated January 5, 2024, of the Head of the Financial Regulatory Commission and mandated to follow it from the same date.

This new product aims to provide investors with the return of securities included in the index portfolio of the exchange and is characterized by ensuring that the market price of the fund's units is as close as possible to the fund's net asset value, with the participation of brokers selected as professional participants.

In addition, there will be no limit on the amount of the share capital; unit rights will be registered in bulk and issued based on demand. Furthermore, the regulation offers specific provisions regarding the obligation to repurchase upon the unit right holder’s request.

Please click here for the "Regulations for Registration of Exchange Traded Funds.".

MONGOLIAN STOCK EXCHANGE