NSCG

MoF

·   3 months

·   Ongoing

·   In consultations with GSIA.

·   National Anti-Corruption Bureau of Georgia (NACB) conducts the assessment of the activities carried out by the tax administrations.

·   The level of corruption is reduced (Objective 10);

·   Transparency of corporate disclosure is increased (Objective 12);

·   Reliability of financial disclosure is increased (Objective 28);

·   Corporate governance practice is improved (Objective 17).

·     Index of corruption is lowered;

·     Companies file more reliable information about their profits;

·     Companies increase the transparency and quality of corporate disclosure.

NACB

·   Ongoing

·   With the technical assistance of the WB.

·   Georgian Securities Industry Association (GSIA) should conduct training courses, seminars, workshops, etc. amongst shareholders, company directors and members of supervisory boards on the best practices of corporate governance;

·   NSCG enforces the corporate governance standards.

·   Educational campaign is conducted (Objective 27);

·   Shareholders have sufficient knowledge about their rights (Objective 26);

·   Entrenched culture of abusive self-dealing is lessened (Objective 16);

·   Shareholders' meetings are held regularly (Objective 29);

·   The role of supervisory boards is increased (Objective 35);

·   Corporate governance practice is improved (Objective 17).

·     Majority of company directors and members of supervisory boards, as well as interested shareholders take part in training courses;

·     NSCG conduct quarterly/annual audits of JSCs;

·     Shareholders' meetings are held annually;

·     Supervisory boards' meetings are held on a quarterly basis.

NSCG

GSIA

·   1 year

·   Ongoing

·   With the financial and technical assistance of the USAID.

·   Prepare and adopt the regulations for Pension Funds;

·   Prepare and adopt the regulations for Mutual Funds.

·   Legislation for financial intermediaries is adopted (Objective 23);

·   Financial intermediaries are well-developed (Objective 21);

·   Large domestic institutional investors are present at GSE (Objective 20);

·   Larger volumes of capital resources are directed to GSE (Objective 18);

·   There is a competition at GSE (Objective 22);

·   There is a strong market for corporate control (Objective 30).

·     Private Pension Funds start functioning in the country;

·     Mutual Funds start functioning in the country;

·     Large domestic institutional investors take part in trading at GSE;

·     Volume of trades at GSE is increased substantially;

·     Number of participants in trading at GSE is increased;

·     Investment funds take active role in the work of supervisory boards/shareholders meetings.

PoG

MoF

NSCG

GSE

·   1 year

·   With the technical assistance of the WB.

·   Adopt the investment compensation schemes;

·   Strengthen the bankruptcy system;

·   Adopt the rules for takeovers.

·   Adequate legislation for investor protection is adopted (Objective 24);

·   Financial intermediaries are well-developed (Objective 21);

·   Large domestic institutional investors are present at GSE (Objective 20);

·   Larger volumes of capital resources are directed to GSE (Objective 18);

·   There is a competition at GSE (Objective 22);

·   There is a strong market for corporate control (Objective 30).

·     Investment compensation schemes are in place;

·     Regulations for the bankruptcy system are in place;

·     Rules for takeovers are in place;

·     Large domestic institutional investors take part in trading at GSE;

·     Volume of trades at GSE is increased substantially;

·     Number of participants in trading at GSE is increased;

·     Investment funds take active role in the work of supervisory boards/shareholders meetings.

MoF

NSCG

GSE

·   1 year

·   With the technical assistance of the WB.

·   Assign an adequate Inspection, Investigation and Enforcement power, including the criminal prosecution authority to the National Securities Commission of Georgia (NSCG);

·   Increase the budgetary support of the NSCG;

·   Make the NSCG accountable to the President of Georgia;

·   Develop the code of ethics for NSCG;

·   Develop the program to supervise Self‑Regulatory Organizations (SROs);

·   NSCG installs the market surveillance and stock watch system.

·   Power of the NSCG is increased (Objective 40);

·   Budgetary support of the NSCG is increased (Objective 37);

·   Accountability of the NSCG is increased (Objective 36);

·   Code of ethics for the NSCG staff is developed (Objective 38);

·   Program to supervise Self‑ Regulatory Organizations (SROs) is developed (Objective 39);

·   The NSCG does function in an effective manner (Objective 39);

·   Regulations are enforced in an effective manner (Objective 42);

·   Trading transparency is enforced (Objective 43);

·   Unfair trading is deterred (Objective 44);

·   Fairness of Market is ensured   (Objective 45).

·     NSCG has the criminal prosecution authority;

·     Budget allocations to NSCG is increased;

·     Rules are in place that make the NSCG accountable to the President of Georgia;

·     The code of ethics for NSCG is in place;

·     The program to supervise SROs is in place;

·     Trades are conducted in a transparent manner/information is easily available;

·     Facts of unfair trading are detected and/or deterred.

PoG

NSCG

GSE

·   6 months – 1 year

·   In consultation with the IOSCO.

·   Special training courses are conducted for the judges dealing with corporate disputes/ protection of shareholders rights.

·   Georgian court system is improved (Objective 32);

·   Shareholders rights are enforced adequately (Objective 31);

·   Fairness of Market is ensured   (Objective 45).

·     Judges have sufficient knowledge of corporate/securities laws;

·     Number of complaints against judges is reduced.

MoJ

NSCG

GSIA

·   6 months