The Tbilisi Stock Exchange plans to establish an Institutional Investors Council to better align capital market instruments with investor demand, according to the exchange’s CEO.
Speaking on TV program Business Course, the council will include representatives of private pension and investment funds and will help identify what types of financial instruments institutional capital is interested in.
“If investors are ready to buy shares, then shares will be issued. If not, we need to think about other instruments, including hybrid products that combine features of bonds and equities,” he said.
Giorgi Amzashvili noted that developing Georgia’s capital market will also require a regulatory framework for real estate investment funds, which he described as a key step for market expansion.
He added that real estate investment fund could be particularly effective in Georgia due to strong public interest in real estate. “Real estate is a very popular asset here, so it would be easier to introduce such instruments,” he said, adding that real estate investment funds typically operate as exchange-traded funds investing in property assets.
The exchange expects work on the relevant regulatory and market development initiatives to be completed in the near future.
