RELATIONSHIP OF LEGAL AND ECONOMIC SYSTEM - CHANCE OR OBSTACLES FOR DEVELOPMENT OF INVESTING IN SERBIA

Abstract

This paper comprises the research on the importance of financial market arrangement for the development of business activities in the Republic of Serbia. Namely, the legal arrangement of financial markets aims to achieve the realization of the environment for the successful business and protection of the investors by securing an efficient, fair and transparent market. In such surroundings the preconditions can be made for the establishment of new legitimate economical subjects in the Serbian financial market. The word is about the investment funds that were made possible by the acquiring of the Investment Funds Law in the Republic of Serbia, brought out in 2006. This article tackles the essence and the significance of this law and its implementation, as well. Finally, the author points out the necessary normative frame adjustment in the area of investment fund regulative accordingly to the needs of the further development of financial markets in Serbia.The relationship between legal and economical system makes also the subject of this article and, in addition the influence of that interconnectivity onto investment funds business. The financial crisis in present has its own peculiar effects that these funds have to deal with especially by adapting to the resulting situation in the Serbian financial market.