Source: www.gogo.mn   Date: May 14, 2010

The Government yesterday approved draft proposals on selecting a management team to restructure the operating procedures of the Mongolian Stock Exchange (MSE). They have been forwarded to the State Property Committee for beginning the tender process of selection.

The bidders have to be a legal entity or a consortium of such entities. Members of the administrative team must have experience of working in the securities and capital market, especially in countries that have made the transition to a market economy in the recent past and that still do not have a comprehensive securities market environment in place.

A bidder will have to submit a detailed 3-year business plan to cover four principal areas: Facilitating a sustainable securities market; facilitating efficient operation of the securities market; establishment of a fair market; and protecting investors’ interest.

The State Properties Committee has been asked to complete the competitive selection process within 3 months. There will be no dilution of state ownership, and the management team will run the MSE on the basis of an administrative contract.