Banja Luka Stock Exchange


The Banja Luka Stock Exchange or BLSE is a stock exchange which operates in the city of Banja Luka in the Republika Srpska, Bosnia and Herzegovina. The Banja Luka Stock Exchange is a member of the Federation of Euro-Asian Stock Exchanges.

History

The strategy of the Banja Luka Stock Exchange is to further improve quality and create cheaper services for its Members and to provide a transparent and fair trading environment for domestic and foreign issuers and investors. The BLSE will continue working at achieving the standard of services comparable with those prevailing on developed capital markets.
Objectives:
The official market is a prestigious part of the stock exchange market, where, apart from the general conditions, there are also requirements of specific conditions regarding the amount of equity, class diversification in public, business performance and objectivity of financial statements. With consideration of the level of development of the capital market of the Republika Srpska, the biggest number of securities from privatisation process is listed on the free market of the BLSE.
General conditions for listing securities on organised market are:
On the official market those securities may be listed which apart from the general conditions meet the following criteria:

Listing criteria for bonds:

The bonds of the Republika Srpska can be admitted to the official market of the Stock Exchange with no specific conditions or restrictions.
Currently on the official market, PIFs segment, shares of 13 Privatisation Investment Funds are listed. In the next period it is expected that the best companies apply for admission to the official market of the BLSE.

Free market

The free market lists securities that meet all general conditions for listing. Securities are listed on the free market segment if required by the issuer or by the law. Shares from privatization process and publicly offered shares are listed on the free market after registration with the Central Registry of Securities. The number of shares listed on this market segment was 630 on June 31, 2003 according to the Stock Exchange Monitor, and it is expected to reach 830 after the registration of shares from privatization in the Central Registry of Securities has been completed.

Market capitalisation

Indexes

The Central Registry of Securities for all members of the Central Registry takes on fulfillment of monetary liabilities and fulfillment of obligation to transfer securities arising from transactions concluded on the Stock Exchange or other regulated public market.
The Registry performs the following activities:
The Central Registry is a unique database on all securities that are traded on the securities market, and especially the database of those data pertaining to the registration of ownership and changes of ownership of the securities. This database has to include all securities. Transactions concluded on the BLSE are settled on T+3.

Foreign Investment Regulation and Taxation

A foreign investor has equal rights as a native investor concerning rights and liabilities and legal status in an enterprise. A foreign investor acquires the right on additional guaranties that are not granted to local persons since the Constitutions of the Republika Srpska prescribes that the right acquired by investment of capital shall not be reduced by the law or any other regulation and guarantees free expatriation of profit and of capital after the end of investment.
Forms of foreign investments in accordance with the Law as follows:
According to the Law on Enterprises in the Republic of Srpska it is possible to establish:
Foreign persons may acquire shares and stocks. Stock company and limited liability company may be established with equity in form of money, goods or rights.

Members of the BLSE