Businesses could gain an alternative to banks. Kazakhstan is preparing a major capital market reform aimed at making it easier for companies to issue shares and bonds, strengthening investor protection and making Kazakh securities more accessible to international capital, DKNews.kz reports.
A roundtable in Almaty focused on the key provisions and priorities of the Capital Market Development Program through 2030. The document was developed on the instructions of the Head of State by the Agency for Regulation and Development of the Financial Market jointly with the National Bank and market participants, according to the Agency’s official announcement.
The reform includes seven strategic areas and 35 initiatives. Its scope goes far beyond stock exchange trading. One of the main objectives is to turn the capital market into a fully functioning source of long-term financing for Kazakh companies alongside traditional bank lending.
Equity market capitalization has more than doubled in five years
According to the Agency, the capitalization of Kazakhstan’s equity market has increased from KZT 19.1 trillion to KZT 41.8 trillion over the past five years.
The debt securities market has also nearly doubled, growing from KZT 32 trillion to KZT 58 trillion, while corporate debt reached KZT 24 trillion.
Yet a larger market does not automatically mean that companies are fully using the stock exchange as a source of financing.
Earlier discussions involving KASE also identified insufficient market liquidity, a limited institutional investor base and the need to broaden access to market financing among the key challenges facing Kazakhstan’s capital market.
The new program is therefore aimed not only at increasing headline market figures, but also at bringing more companies to the market and giving them a practical way to raise capital.
“The Agency, jointly with the National Bank, was instructed to develop the Capital Market Development Program through 2030 and prepare a new Capital Market Law. These initiatives are aimed at building a modern architecture for the stock market and creating conditions for its further development as one of the key sources of long-term financing for the economy alongside bank lending. At the same time, a developed securities market is an important factor in diversifying funding sources, strengthening macroeconomic resilience and increasing investor confidence,” said Madina Abylkassymova, Chair of the Agency for Regulation and Development of the Financial Market.
Companies will get an easier route to the stock exchange
One of the most significant parts of the reform directly concerns businesses.
The authorities plan to make securities issuance procedures faster and more convenient. Among the proposed changes is transferring securities registration to the Central Securities Depository and moving procedures into a digital format.
The regulator is also preparing specific measures to help small and medium-sized businesses enter the equity market. Details of the 35 initiatives and planned changes for companies and investors are outlined in the Agency’s explanation of the Capital Market Development Program.
One proposal is to introduce listing sponsors for SMEs.
Such sponsors would assess whether a company is ready to become public, draw up a preparation plan, coordinate investment banks, auditors and legal advisers, and continue supporting the issuer after listing.
More flexible placement conditions are also planned for medium-sized businesses.
The goal is to reduce administrative and regulatory barriers and increase the number of companies able to raise financing through the stock market.
For businesses, the practical implication is straightforward. A company looking for long-term funding would not have to rely solely on the traditional combination of bank loans, interest payments and collateral. It could also issue bonds or raise equity directly from investors.
Pension assets could play a bigger role in the domestic market
The program places particular emphasis on strengthening the role of institutional investors.
Such investors can generate stable, long-term demand for shares and bonds issued by Kazakh companies.
The authorities are considering improvements to pension asset management as well as broader opportunities for financial institutions to invest their funds in domestic market instruments.
The Agency says pension assets currently represent the main source of long-term capital, while the participation of other institutional investors remains limited. Expanding that investor base is expected to support secondary-market activity and increase financing opportunities for Kazakh companies.
This is a critical issue for the stock market.
Growth in the number of retail investors can increase trading activity, but large pools of long-term capital are typically provided by pension funds, insurance companies and other institutional investors.
If their participation in Kazakhstan’s domestic market increases, local companies could gain a broader potential buyer base when issuing shares and bonds.
Covered short selling could be introduced on KASE
Another part of the reform is aimed at improving secondary-market liquidity.
The authorities plan to establish a centralized securities lending mechanism.
Under the proposed system, institutional investors would be able to make temporarily idle securities available for market transactions.
This infrastructure would provide the basis for allowing covered short selling.
In such a transaction, an investor sells securities that have already been borrowed, expecting their price to fall and aiming to repurchase them later at a lower price.
The program also calls for strengthening the role of market makers and supporting independent research on issuers.
For retail investors, the practical effect would be seen in liquidity. The more active buyers and sellers a security has, the easier it is to enter or exit a position without sharply moving its market price.
Kazakh shares could be connected to international settlement systems
One of the most significant elements of the reform concerns foreign investors.
Kazakh equities are expected to be connected to major international custody and settlement systems.
This would allow international investors to buy and hold Kazakh securities using infrastructure they already use in global markets.
The measure is intended to reduce transaction costs and broaden the pool of potential investors.
Kazakhstan has already been stepping up efforts to present its capital market internationally. In April 2026, KASE presented the domestic market to global investors at a roundtable in New York organized by the National Bank of Kazakhstan and the Consulate General of Kazakhstan with support from KASE and Citigroup.
At the event, KASE identified higher liquidity, a broader investor base, stronger infrastructure and deeper integration with global markets among the main priorities of the reform. The exchange published details in its official English-language report on the New York meeting.
For Kazakh companies, integration with international infrastructure could shorten the route to foreign capital.
But international investors also bring higher expectations. Companies need clear financial disclosure, credible corporate governance and reliable protection of shareholder rights.
That is why infrastructure changes are being developed alongside corporate governance reforms.
Minority investors are set to receive stronger protection
A separate part of the program focuses on improving corporate governance and protecting investor rights.
The authorities plan to increase transparency among public companies, strengthen corporate governance requirements and ensure more effective protection for minority investors.
“Special attention will be paid to improving the quality of corporate governance and protecting investors’ rights. We plan to increase the transparency of public companies, strengthen corporate governance requirements and ensure more effective protection of minority investors. This is particularly important for building long-term confidence in the market and expanding the participation of retail investors,” Abylkassymova said.
For individual investors, these measures could prove just as important as the arrival of new stocks and bonds.
As more people place their savings into securities, timely disclosure, conflicts of interest, the actions of controlling shareholders and the rights of smaller shareholders become increasingly significant.
KASE will establish an independent regulatory committee
The market supervision system is also set to change.
The Agency is developing a risk-based supervisory model designed to assess not only formal compliance with regulations, but also actual risks and the conduct of market participants.
The updated model has already undergone pilot testing, including stronger assessment of investor protection and corporate governance.
It is now expected to be extended across the entire capital market.
At the same time, KASE’s regulatory role will be strengthened and its regulatory functions will become more independent.
KASE already performs several functions related to admitting market participants and issuers to trading, disclosure requirements and monitoring trading activity.
The next step will be the creation of an independent regulatory committee within the exchange.
The committee is expected to make decisions independently of KASE’s commercial management. If signs of market manipulation are detected, the relevant information will be promptly transferred to the Agency.
“The identified areas cover the key elements of market development, from expanding demand and bringing new issuers to the market to developing infrastructure, strengthening investor protection and improving supervision,” Abylkassymova said.
A new Capital Market Law will underpin the reform
The program will be accompanied by a new Capital Market Law.
The legislation is intended to consolidate and systematize existing rules and create a unified regulatory architecture for Kazakhstan’s capital market.
The program and the new law are designed to address several issues simultaneously: bring new issuers to the market, create sustainable demand for securities, improve liquidity, make the market easier for international investors to access and strengthen protection for individual investors.
There are already signs of growing exchange activity.
In the first six months of 2026, total trading volume on KASE reached KZT 261.9 trillion, up 48.8% from the same period in 2025. Stock market capitalization stood at KZT 47.6 trillion as of July 1, while 29 new issuers completed listing procedures during the first half of the year, according to KASE’s official first-half 2026 results.
The next challenge is to turn this market activity into a stable system capable of financing Kazakhstan’s businesses over the long term.
If the planned 35 initiatives are implemented, Kazakh companies could have a broader choice when seeking long-term funding: rather than relying primarily on bank financing, they could increasingly raise capital directly from investors through shares and bonds.
The ultimate measure of the reform will therefore not be market capitalization alone, but how many Kazakh companies are actually able to raise meaningful financing through the capital market.
