Estonia, Good for Business, Investments, Legislation, Markets and Companies

The main aim of the Act on Amendments to the Securities Market Act, initiated by the government, is to reduce the administrative burden of issuers on the stock exchange, and another aim is to increase the transparency of the securities market.

With the Act, trading on the stock exchange was made more attractive for small and medium-sized enterprises for whom this process together with compliance with the requirements for disclosure of stock exchange information is proportionally more costly than for large undertakings.

For example, to reduce the administrative burden of issuers, the term for disclosure of the half-yearly report is extended from two months to three months. The repeal of the obligation to disclose the interim management statement and of the relevant sanction will reduce the frequency of mandatory disclosure of financial reports.

77 members of the Riigikogu voted in favour of the Act, two were against, and there were 3 abstentions.