The new financial instrument is ready for launch: NSSMC finalises regulatory framework for agricultural notes in Ukraine

A new instrument for attracting investment in agriculture – agrarian notes – will soon be available on the Ukrainian financial market. National Securities and Stock Market Commission (NSSMC) has prepared all the necessary regulatory framework for the launch of this instrument from the beginning of next year.

«NSSMC is constantly working on expanding the range of financial instruments based on market demand. A new financial instrument for financing agricultural production will start operating in Ukraine very soon, and we are ready. We hope for good dynamics of agricultural notes in the near future», said Ruslan Magomedov, NSSMC Chairman.

On 1 January 2025, the Law of Ukraine on Agrarian Notes will come into force, which provides for the establishment of a separate Register of Agrarian Notes. NSSMC has already developed and approved the relevant regulation governing the operation of this register. It will contain information on:
– issuance, content and change of details of agricultural notes;
– termination and encumbrance of agricultural notes;
– commencement of enforcement of obligations under agricultural notes on the basis of a special extract from the Register.

In addition, the regulator amended the Regulation on the Conduct of Depository Activities, which defines the specifics of accounting for agricultural notes in the Central Depository system, depositing non-issue securities, etc. Additional regulations were also adopted to regulate relations arising from the circulation of agricultural notes.

The regulations, which will come into force in January 2025, are available on the regulator’s official website:
– on Approval of the Regulation on the Register of Agricultural Notes https://www.nssmc.gov.ua/document/?id=22333004;
– on Approval of the Procedure for the Exchange of Information on Issued Agricultural Notes between the Administrator of the Agricultural Notes Register and the Administrator of the State Agrarian Register https://www.nssmc.gov.ua/document/?id=22315198;
– on Approval of Amendments to the Regulation on Conducting Depository Activities https://www.nssmc.gov.ua/document/?id=22323298;
– on Approval of the Procedure for Information Exchange between the Agrarian Note Register and the Securities Depository Accounting System https://www.nssmc.gov.ua/document/?id=22303943;
– on Amendments to the Regulation on the Register of Agrarian Notes https://www.nssmc.gov.ua/document/?id=22333036

Background information:

An agricultural note is a non-issue security in electronic form that exists as an account in the securities depository system. Information on the details of agricultural notes and other data is recorded in the Agricultural Note Register.

Traditional paper agricultural receipts will continue to be used in accordance with the Law of Ukraine on Agricultural Receipts.