Georgia’s Capital Market : Functioning Problems and Development Directions in Association with European Union

The paper represents the study of ongoing tendencies on the Georgian capital market; the relationship between executed legislative infrastructure and institutional reforms has been established. The purpose of the work is to analyze the characteristics of formation and functioning of capital market in Georgia, to identify existing problems and develop ways to solve it.In the paper it is established: whether the capital market development reforms in Georgia are in the right direction; is it possible to improve investors' rights on the capital market as a result of changes? The following is stated: what significant importance has comprehensive policy development for country's capital market development; on which principles should stay on, which direction and order should develop capital market; what is needed to achieve the goals set in the short and medium periods; what role should participants play in this process.In the summary of paper planned reforms for Georgia's capital market development and their possible outcomes are given, considering European experience, the author's recommendations are presented in terms of effectiveness of these measures