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 Property 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.