Banja Luka Stock Exchange - AbsoluteAstronomy.com

The Banja Luka Stock Exchange or BLSE (Serbian Cyrillic: Бањалучка берза, Serbian Latin: Banjalučka berza) is a stock exchange

Stock exchange

A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...

which operates in the city of Banja Luka

Banja Luka

-History:The name "Banja Luka" was first mentioned in a document dated February 6, 1494, but Banja Luka's history dates back to ancient times. There is a substantial evidence of the Roman presence in the region during the first few centuries A.D., including an old fort "Kastel" in the centre of...

in the Republika Srpska

Republika Srpska

Republika Srpska is one of two main political entities of Bosnia and Herzegovina, the other being the Federation of Bosnia and Herzegovina...

, Bosnia and Herzegovina

Bosnia and Herzegovina

Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...

History

15 July 1998 - The adoption of The Law on Securities provided the necessary legal framework to establish the capital market of the Republika Srpska.

4 May 2000 - The National Assembly of the Republic of Srpska appointed the first members of Republika Srpska Securities Commission.

26 February 2001 - Established Central Registry of Securities (CRHoV).

9 May 2001 - Eight banks and one company trading in securities signed the Contract that established the Banja Luka Stock Exchange.

9 August 2001 - Republika Srpska Securities Commission issued working permit to Banja Luka Stock Exchange.

29 November 2001 - The first equity from the privatisation programme was registered in the Central Registry of Securities.

5 March 2002 - Signed contract on transfer of license between the Directorate for Privatisation and the BLSE that provided BLSE with electronic trading system (BTS) developed by the Ljubljana Stock Exchange (LJSE).

14 March 2002 - The first BLSE trading session took place, involving six Members that traded 20 listed securities.

12 September 2002 - The Law on Takeover came into force.

30 September 2002 - The BLSE and the LJSE signed Memorandum on cooperation and exchange of information.

10 December 2002 - A contract on regional co-operation in field of education and financial markets was signed with the Belgrade Stock Exchange

Belgrade Stock Exchange

The Belgrade Stock Exchange is a stock exchange in Belgrade, Serbia.-History:The first ideas about establishing an institution which would control the movement of the value of money appeared in Serbia in the 1830s. The Serbian Trading Association, important for the development of the entire...

.

24 January 2003 - The first session of The Listing Commission took place and stocks of 13 Privatisation Investment Funds admitted to the official market of the BLSE.

11 February 2003 - The first transactions concluded with shares of PIFs.

20 August 2003 - The first auction for state owned capital took a place on the BLSE

23 September 2003 - Shares of Rafinerija ulja a.d. Modriča

Modrica

Modriča is a city and municipality in Bosnia and Herzegovina, in Republika Srpska entity. It is located near the towns of Šamac, Derventa and Doboj...

were listed on the official market of the BLSE as the first company listed on official market in Bosnia.

27 April 2004 - The Stock Exchange Index of Republic of Srpska (BIRS

BIRS

The BIRS Index is a share index of the 12 largest companies listed on the Banja Luka Stock Exchange , established on 1 May 2004. BIRS stands for Berzanski indeks Republike Srpske, which is Serbian for The Stock Exchange Index of Republika Srpska....

) established.

29 July 2004 - Investment Funds Index of Republic of Srpska (FIRS

FIRS

The FIRS Index is a share index of the 13 privatisation-investment funds listed on the Banja Luka Stock Exchange , established on 29 July 2004...

) established.

29 December 2005 - The Index of the Power Utility Companies of Republic of Srpska (ERS10

ERS10

The ERS10 Index is a share index of the 10 companies from the power utility sector which are listed on the Banja Luka Stock Exchange , established on 29 December 2005...

) established.

Strategy

The strategy of the Banja Luka Stock Exchange is to further improve quality and create cheaper services for its Members and to provide a transparent and fair trading environment for domestic and foreign issuers and investor

Investor

An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...

s. The BLSE will continue working at achieving the standard of services comparable with those prevailing on developed capital market

Capital market

A capital market is a market for securities , where business enterprises and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets...

s.

Objectives:

to protect the interest of investors;
to promote investment in securities;
to provide liquidity and "depth" in the capital market of the Republika Srpska
to introduce new financial instruments
Financial instruments
A financial instrument is a tradable asset of any kind, either cash; evidence of an ownership interest in an entity; or a contractual right to receive, or deliver, cash or another financial instrument....

in the capital market of the Republika Srpska
to provide conditions for public companies to raise the capital required to finance their development plans
to promote the listing of securities issued by local companies
to attract foreign investors through use of promotional campaign to connect with regional capital market
to connect with regional capital market.

Official market

The official market is a prestigious part of the stock exchange market, where, apart from the general conditions, there are also requirements of specific conditions regarding the amount of equity

Ownership equity

In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...

, class diversification in public, business performance and objectivity of financial statements

Financial statements

A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...

. With consideration of the level of development of the capital market of the Republika Srpska, the biggest number of securities from privatisation process is listed on the free market of the BLSE.

General conditions for listing securities on organised market are:

possibility to trade in an organised way with those securities
securities have been paid in full
freely transferable
issued in non material form.

On the official market those securities may be listed which apart from the general conditions meet the following criteria:

Years of existence: 3
Reality and objectivity of financial statements: Audited financial statements
Equity size: BAM
Bosnia and Herzegovina convertible mark
The Bosnia and Herzegovina convertible mark is the currency of Bosnia and Herzegovina. It is divided into 100 fenings...

5,000,000 (BAM 1 = EUR 0.5113)
Min. size of class of shares: BAM 1,000,000
Class diversification in public: at least 15%
Number of shareholders: at least 50

Listing criteria for bonds

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

Years of existence: 3
Reality and objectivity of financial statements: Audited financial statements
Issue nominal value: BAM 1,000,000

The bonds of the Republika Srpska can be admitted to the official market of the Stock Exchange with no specific conditions or restrictions.

Currently on the official market, PIFs segment, shares of 13 Privatisation Investment Funds are listed. In the next period it is expected that the best companies apply for admission to the official market of the BLSE.

Free market

The free market lists securities that meet all general conditions for listing. Securities are listed on the free market segment if required by the issuer or by the law. Shares from privatization process and publicly offered shares are listed on the free market after registration with the Central Registry of Securities. The number of shares listed on this market segment was 630 on June 31, 2003 according to the Stock Exchange Monitor (see links below), and it is expected to reach 830 after the registration of shares from privatization in the Central Registry of Securities has been completed.

Indexes

BIRS

, an index of 12 leading shares on the stock exchange, including Telekom Srpske

Telekom Srpske

Telekom Srpske is a telecommunications company based in Banja Luka, Bosnia and Herzegovina. The company is owned by Telekom Srbija, and is the second largest telecommunications company in Bosnia and Herzegovina and the biggest one listed on the Banja Luka Stock Exchange, with the market...

and Rafinerija ulja Modriča.

FIRS

FIRS

The FIRS Index is a share index of the 13 privatisation-investment funds listed on the Banja Luka Stock Exchange , established on 29 July 2004...

, an index of 13 privatisation-investment funds in Republika Srpska.

Clearing and settlement

The Central Registry of Securities for all members of the Central Registry takes on fulfillment of monetary liabilities and fulfillment of obligation to transfer securities arising from transactions

Financial transaction

A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...

concluded on the Stock Exchange or other regulated public market.

The Registry performs the following activities:

registration and maintenance of securities, i.e. information on securities, security ownership and all transactions transferring the ownership or other changes in the status of securities, both material and non material form
registration and maintenance of information defining the ownership
Ownership
Ownership is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. Ownership involves multiple rights, collectively referred to as title, which may be separated and held by different parties. The concept of ownership has...

or other rights incorporated
Incorporation (business)
Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...

, both in material and non material securities
record-keeping of the issuer accounts, i.e. accounts of security owners, and issuing of certificates on status and changes in those accounts
transfers
Wire transfer
Wire transfer or credit transfer is a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office...

, depositing, settlement
Settlement (finance)
Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against payment of money, to fulfill contractual obligations, such as those arising under securities trades....

and clearing
Clearing
Clearing may refer to:* Glade , a tract of land with few or no trees in the middle of a wooded area* Deforestation, the clearing away of trees to make farmland* Clearing , the process of settling a transaction after committing to it...

activities arising from transactions with securities!

The Central Registry is a unique database on all securities that are traded on the securities market, and especially the database of those data pertaining to the registration of ownership and changes of ownership of the securities. This database has to include all securities. Transactions concluded on the BLSE are settled on T+3.

Foreign Investment Regulation and Taxation

A foreign investor has equal rights as a native investor concerning rights and liabilities and legal status in an enterprise. A foreign investor acquires the right on additional guaranties that are not granted to local persons since the Constitutions of the Republika Srpska prescribes that the right acquired by investment of capital shall not be reduced by the law or any other regulation and guarantees free expatriation of profit and of capital after the end of investment.

Forms of foreign investments in accordance with the Law as follows:

establishment of legal body fully owned by the foreign investor
establishment of legal body jointly owned by national and foreign investors
investments in existing legal bodies
special forms of investments.

According to the Law on Enterprises in the Republic of Srpska it is possible to establish:

public enterprise
partnership
Partnership
A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
limited partnership
Limited partnership
A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners , there are one or more limited partners . It is a partnership in which only one partner is required to be a general partner.The GPs are, in all major respects,...
stock company
limited liability company
Limited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...

.

Foreign persons may acquire shares and stocks. Stock company and limited liability company may be established with equity in form of money, goods or rights.

Members of the BLSE

Akcija broker a.d. Banja Luka
Balkan Investment Bank a.d. Banja Luka
Bobar banka a.d. Bijeljina
Bijeljina
Bijeljina is a city and municipality in northeastern Bosnia and Herzegovina. The city is the second largest in the Republika Srpska entity after Banja Luka and fifth largest city in Bosnia and Herzegovina, and is situated on the flat rich plains of Semberija...
Eurobroker a.d. Banja Luka
Grand Broker a.d. Zvornik
Zvornik
Zvornik is a city on the Drina river in northeastern Bosnia and Herzegovina, located south of the town of Bijeljina in Bosnia and Herzegovina. The town Mali Zvornik lies directly across the river in Serbia, and not far north is Loznica.-History:Zvornik is first mentioned in 1410, although it was...
Hypo-Alpe-Adria Bank a.d. Banja Luka
Nova Banjalučka banka a.d. Banja Luka
Nova banka a.d. Banja Luka
NLB Razvojna banka a.d. Banja Luka
Zepter komerc banka a.d. Banja Luka
Raiffeisen capital a.d. Banja Luka
Monet broker a.d. Banja Luka
InterFinance a.d. Banja Luka
Senzal a.d. Banja Luka
Jahorina osiguranje a.d. Pale

External links

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