From April 1 KASE prohibits using securities as repo transaction subjects

/KASE, March 10, 09/ - By the decision of Kazakhstan Stock Exchange (KASE) of February 26, 2009, KASE Board was charged with development of proposals on an issuer status possible criteria, in existence of which issued by him securities must be prohibited for use as repo transaction subjects. KASE proposals, developed in this task implementation, were approved by the KASE Council on March 5, 2009. At this the KASE Council established that prohibitions that follow from mentioned proposals, will be given effect from April 1, 2009. In compliance with the KASE Council on approval of mentioned proposals: 1)the prohibition to use securities as repo transaction subjects, executed by the "nego" and "automatic" methods, shall be introduced if: - these securities issuer untimely paid interest on its bonds, admitted to circulation on KASE; and/or - these securities issuer untimely paid dividends on its preferred shares, admitted to circulation on KASE; and/or - these securities admittance initiator did not submit to KASE financial statements of their issuer (including the interim) during three months after established by the listing agreement period; and/or - these securities admittance initiator did not submit to KASE significant information on these securities and/or their issuer (the information, which may influence on these securities cost) during ten days after established by the listing agreement period; 2)introduced prohibition to use securities as repo transaction subjects does not cover those repo transactions, deals of opening of which were made before such prohibition was given effect; 3)the prohibition to use securities as repo transaction subjects is annulled if these securities issuer and/or their admittance initiator eliminates a violation (considering below mentioned specifics); 4)if prohibition to use securities as repo transaction subjects was introduced due to untimely payment of an interest on bonds, such prohibition can b e annulled only after timely payment of an interest on bonds for the next coupon period; 5)prohibitions to use securities as repo transaction subjects and annulment of such prohibitions is the authority of KASE Board. The necessary amendments to corresponding KASE internal documents will be developed in the nearest time. [2009-03-10]