January 10, 2026

Depository Activities in the Securities Market

1. Introduction

2. Legislation

3. General Overview

4. Functions and responsibilities of the investment intermediary (“depositary”)

5. The procedure for obtaining an investment intermediary (“depositary”)

6. Internal control requirements for depository activities

  1. Introduction

The securities market in the Republic of Uzbekistan plays an important role in the country’s economy. They characterise the state of a country’s economy. Stable securities rates generally indicate a good economic situation (more information on securities can be found in this memorandum). Depositaries are important participants in the securities market. This memorandum aims to address the legal framework for depositories in the Republic of Uzbekistan.

  1. Legislation

The following acts of legislation regulate depositary activities in the Republic of Uzbekistan:

  1. Law of the Republic of Uzbekistan No. LRU-387 of 03.06.2015. “On the Securities Market”;
  2. Law of the Republic of Uzbekistan No. LRU-370 of 06.05.2014. “On Joint Stock Companies and Protection of Shareholder Rights;
  3. Law of the Republic of Uzbekistan No. LRU-701 of 14.07.2021 on Licensing, Permitting and Notification Procedures;
  4. Law of the Republic of Uzbekistan No. LRU-730 of 23.11.2021 on Insurance Activities;
  5. Law of the Republic of Uzbekistan No. LRU-252 of 15.06.2010. “On Archives”;
  6. Decree of the Cabinet of Ministers of the Republic of Uzbekistan No. 304 of 07.06.2022 “On the systematization of normative legal acts regulating the provision of public services for the issuance of qualification certificates”;
  7. Decree of the Cabinet of Ministers of the Republic of Uzbekistan No. 80 of 21.02.2022 “On Approval of the Single Regulation on the Procedure for Licensing Certain Types of Activities by means of a Special Electronic System”;
  8. Order of the Director of the National Agency for Promising Projects of the Republic of Uzbekistan No. 3728 of 22.12.2025. “On Approval of the Regulation on the Activity of an Investment Intermediary on the Securities Market”;
  9. Order No. 1915 of the Director General of the Centre for Coordination and Control of Securities Market Functioning under the State Property Committee of the Republic of Uzbekistan dated 07.03.2009. “On approval of the regulation on accounting by a professional securities market participant of transactions and deals on the securities market, storage of documents for their accounting”;
  10. Standard regulation No. 482 of 30 October 1999 on departmental archives in the State authorities and administration, enterprises, institutions and organizations of the Republic of Uzbekistan;
  11. Order of the Director of the National Agency for Promising Projects of the Republic of Uzbekistan No. 3628 dated July 1, 2025, “On Approval of the Rules for Keeping Records of Depository Operations”.

    3.  General overview

According to the Rules for Keeping Records of Depository Operations, a depository system is a system for storing, registering, and transferring rights to securities, carried out by central depository and accounting organizations.

Before the adoption of the amended Securities Market Law (from 2015), depositaries existed on the market as a separate entity. However, due to changes in legislation, depositary operations are now carried out by investment intermediaries, thereby expanding the powers of investment intermediaries. Previously (until 2015), an investment intermediary was only engaged in brokerage and dealing activities.

An investment intermediary is a professional securities market participant who carries out transactions and operations with securities on behalf of, on behalf of and at the expense of a client. An investment intermediary is required to obtain a licence in order to carry out the activities of an investment intermediary. The procedure for obtaining a licence is described below.

  1. Functions and responsibilities of the investment intermediary (“depositary”)

An investment intermediary shall, when carrying out depository operations, be obliged to:

  • ensure that the rules of securities and cash accounting are available to those concerned;
  • keep records of the number and nominal value of securities held by each depositor;
  • keep records of the encumbrance and termination of securities;
  • keep in the departmental archive the documents that form the basis for securities transactions and customer account transactions;
  • carry out transactions on depo accounts on the basis of written instructions from depositors or persons authorized by them, except in cases provided for by law;
  • confirm ownership and other rights of possession of the depositor’s securities by issuing appropriate depo account statements;
  • ensure the confidentiality of information on the existence, movement and condition of securities and funds in clients’ accounts;
  • suspend operations on a securities account on the basis of decisions of the authorized state securities market regulator, state anti-monopoly authority, as well as court, enquiry and investigation bodies in the manner prescribed by law;
  • provide, upon written request of the authorised state securities market regulator, state tax authority, state anti-monopoly authority, as well as court, enquiry and investigation bodies, within the limits and in accordance with the procedure determined by law, information related to its activities;
  • provide for the possibility of compensating them for losses incurred by participating in the formation of a guarantee fund;
  • provide, at the request of the Central Securities Depositary, information on the owners of securities necessary for the formation of the register of owners of securities;
  • make changes to the details of the securities it holds and their issuers based on data received from the Central Securities Depositary.

The procedure for recording and safeguarding client money by an investment intermediary is established by the authorized state securities market regulator (National Agency for Prospective Projects of the Republic of Uzbekistan, hereinafter – NAPP).

  1. The procedure for obtaining an investment intermediary (“depositary”)

There are two subspecies of a securities market license:

  • the activities of an investment intremediary;
  • the activities of an investment asset trustee;

Note:

Commercial banks and Insurance companies with relevant licenses may carry out professional activities on the securities market as an investment intermediary. However, commercial banks and insurers are not required to obtain a separate license to carry out this type of activity.

In order to obtain a licence to operate as an investment intermediary on the securities market, the following documents must be submitted to NAPP:

  1. Application;

The application must contain the name and legal form of the legal entity, postal address, place of business, name of the servicing bank and bank account, telephone number, TIN, e-mail address (if any), choice of licence (investment intermediary), reason for filling in the application (obtaining a licence or re-registration), and the applicant’s consent to comply with the requirements and conditions of the license.

  1. A copy of the balance sheet together with the income statement as at the last reporting date;
  2. Calculation of the amount of own funds (investments) in monetary form as not less than 1000-fold of the basic calculationvalue (hereinafter – BCV) (412 million UZS ≈ 34,155 USD) for each sub-type of licensed activity on the last reporting date in accordance with the approved order by the licensing authority (NAPP);
  3. A copy of the licence agreement for commercial use of the custody software concluded with the organisation that sold (provided) the custody software;
  4. Technical description of the software for depositary operations;
  5. A list with a description of the technical means used for depositary operations;
  6. Conclusion of the Central Securities Depositary on the compliance of the software and hardware with the established requirements for the software and hardware complexes of investment intermediaries and readiness for electronic interaction with professional securities market participants, the stock exchange and the Central Securities Depositary.

The cost of obtaining a licence: 4 BCV (1 million 648 thousand soums ≈137 USD).

Timeframe for obtaining a licence: 20 working days.

Duration of licence (once obtained): not limited.

Note:

A legal entity applying for an investment intermediary license must have at least two employees with a securities market specialist qualification certificate. This certificate is issued for a period of five years.

The register of professional securities market participants in Uzbekistan is listed on this website (https://napp.uz/ru/pages/qimmatli-qog-ozlar-bozori-professional-ishtirokchilarining-reestri) as of 1 January 2026.

  1. Internal control requirements for depository activities

The Central depository and accounting organization must organize an internal control system by regularly comparing data in the accounting records of the Central depository and accounting organization at all stages of performing their functions.

The internal control implementation procedure includes the following:

— identification and assessment of risks in the activities of the Central depository and accounting organization, taking the necessary measures to minimize the risks arising in the course of depository activities, and monitoring their implementation;

— monitoring compliance by the Central depository and the account organization with the requirements of legislative acts, as well as the terms of contracts and agreements concluded with depositories;

— monitoring compliance by employees of the Central Depository and the accounting organization with established powers and procedures in the performance of operational procedures and official duties;

— preventing conflicts of interest that may arise in the course of the activities of the Central Depository and the accounting organization;

— control the proper registration of depository operations in the accounting system of the Central Depository and the accounting organization;    

— control the safety of assets and materials of depository accounts transferred for safekeeping to the Central Depository and the Accounting Organization;

— monitor the reliability of the system for protecting account information from unauthorized access;

— monitor the correct and timely preparation of internal reports and reports submitted to the competent state authorities;

— determine measures to prevent the misuse of confidential information.