Dematerialized market
Securities are kept and traded in dematerialized form. The right to open and manage personal securities accounts is conferred to brokerage firms and the Central Securities Depository of Lithuania (CSDL). Securities movements are recorded by relevant book entries in the securities accounts.
Types of securities
Law on Securities Market stipulates the following types of securities:
- share of public company;
- bond or other debt instrument;
- subscription right;
- unit of collective investment undertaking;
- derivatives (financial futures contracts, forward interest-rate agreements and others);
- depository receipt.
Regulated and OTC market
The regulated secondary market in Lithuania is operated by the NASDAQ OMX Vilnius. NASDAQ OMX Vilnius is a self-regulated organization, issuing and enforcing its own rules and regulations that set listing, trading and other procedures at the NASDAQ OMX Vilnius. OTC market trades are registered by brokerage firms and are reported to the NASDAQ OMX Vilnius.
Market supervision
The securities market is regulated and supervised by the Securities Commission of the Republic of Lithuania . The Securities Commission is a state institution where commissioners are appointed for a five-year term by the Parliament and which acts pursuant to the principles and procedure provided in the Law on Securities Market.
The Securities Commission conducts supervision of the securities market in the name of the state in order to enhance the stability and reliability of the entire financial sector.
The NASDAQ OMX Vilnius performs market supervision over market participants and issuers of securities traded on the market, with respect to the price formation of the securities traded on the market, conclusion and execution of transactions and fulfillment of provisions of the Rules and Regulations adopted by the Exchange. The NASDAQ OMX Vilnius exercises market supervision on the grounds and within the scope prescribed by legal acts and the Rules and Regulations of the Exchange. VSE and the Securities Commission co-operate in the course of exercising market supervision.
Investor protection
Lithuanian law provides a considerable degree of security for foreign investors.
Repatriation of profits derived from soft currency earnings is not restricted. There are guaranteed rights to withdraw profits, royalties and interest in convertible currency.
Legal framework
The objective of the legal regulation is to provide legal basis for a fair, open and efficient functioning of the securities market, seeking to maximize security of investors’ interests and to restrict systemic risk. On the basis of and in addition to legal acts, the NASDAQ OMX Vilnius as self-regulatory organization issues and enforces its own Rules and Regulations to ensure regular and lawful operation of the market.
The operations of the VSE are regulated by the Lithuanian Securities Commission
Law on the Supplementary Voluntary Accumulation of Pensions
Law on the Accumulation of Pensions
Law on Insurance of Deposits and Liabilities to Investors
Law on the Privatisation of State-Owned and Municipal Property
Law on Collective Investment Undertakings
Law on Financial Institutions
Law on Securities Market
Law on Companies
