Nicosia, Cyprus. The House of Representatives has unanimously approved legislation paving the way for the privatisation of the Cyprus Stock Exchange (CSE), which the government described as a major institutional reform for the financial sector.
Finance Ministry welcomes passage
In a statement, the Finance Ministry said the bill’s passage is a significant institutional and reform milestone, part of a broader effort to modernise the capital market and strengthen the competitiveness and credibility of the Republic’s financial system.
The ministry said the new law sets the framework for the privatisation of the CSE and for the transfer of the responsibilities of the Central Depository and the Central Registry of Securities to a strategic investor, while ensuring the uninterrupted continuation of operations and the protection of the public interest.
Provisions for CSE staff
The ministry said the legislation safeguards the labour rights of CSE staff, providing for their transfer to the Finance Ministry or, alternatively, the payment of compensation under an early voluntary retirement scheme.
The Finance Ministry also thanked members of parliament, and in particular the House finance committee, for their cooperation and contribution to completing the reform, and reaffirmed its commitment to the effective implementation of the law for the benefit of the Cypriot economy.
Legal structure and privatisation process
The legislation, formally titled the Law on the Privatisation of the Cyprus Stock Exchange, the Central Depository and the Central Registry of Securities and the Transfer of CSE Staff to the Ministry of Finance Law of 2025, sets out the legal structure for the process.
It provides for the creation of a special purpose vehicle to act as the vehicle for the privatisation and outlines the procedure for selling its shares to a strategic investor. The law also defines the competent bodies, the process for selecting the strategic investor, and the stages of the privatisation.
It regulates the transfer of operations, responsibilities, activities, functions, as well as the assets and liabilities of the CSE to the special purpose vehicle and subsequently to the strategic investor.
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