BAKU, Azerbaijan, Feb. 19
By Tamilla Mammadova – Trend:
The Government of Georgia has completed work on a bill on development of investment funds, Trend reports citing Georgian media.
As reported, Georgian Prime Minister Giorgi Gakharia has presented a bill on investment funds at a government meeting on Feb. 19. The bill aims to develop investment funds in Georgia and ensure free competition.
It also provides rules to create investment funds, to regulate their activity and to protect the interests of investors.
The bill, which was developed in four years, will be sent to the Parliament of Georgia to be approved.
"The law on investment funds is very important for developing a capital market, which is an effective way for distributing financial resources in the economy,” said Gakharia.
According to him, the law will apply to investment funds and their asset management companies, as well as other persons and institutions which are involved in the process of investing the assets of the funds and management, administration and accounting activities of the investment funds.
"Law on investment funds is very important as it will help accumulation of savings income not spent, or deferred consumption and funds will distribute them in different areas,” said Deputy Economy Minister Ekaterine Mikabadze.
The deputy minister noted that the bill is designed in line with international best practices, fulfills the obligations under the Association Agreement with the EU and will benefit the Georgian economy.
An investment fund is a type of supply of capital which belongs to numerous investors. It is used to collectively invest in stocks and bonds. In an investment fund, each investor owns their individual shares.
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