/KASE, May 4, 08/ - On April 29, 2008 Special Inter-district Economic Court
(SMES) of Almaty for purposes of securing a claim of BCC Invest JSC -
Subsidiary Bank CenterCredit JSC to Kazakhstan Stock Exchange (KASE) made
a decree on suspension of concordance with the Agency of the Republic of
Kazakhstan on Regulation and Supervision of Financial Market and
Financial Organizations (AFS) on amendments to KASE internal documents
"Regulations on Membership" and "Rules on Repo Transactions
Execution", made by the Exchange Council decision of April 24, 2008, and
on suspension of effect of the indicated amendments.
The indicated decree of Almaty SMES is subject to execution from the day it is
made.
Let us remember that by the KASE Council decision of April 24, 2008 changes
and additions No. 10 to "Regulations on Membership" and changes No. 7 to
"Rules on Repo Transactions Execution" were approved, and made effective April
28, 2008.
In accordance with the indicated amendments to the Regulations on Membership:
- KASE member is liable and responsible in respect of the deal, concluded at
the Exchange trades, regardless upon whose request, at whose expense and
in the interests of who this deal was concluded;
- at trading on somebody's behalf/at somebody's expense and/or in the interests
of the third person, KASE member may act only on the basis of the
corresponding agreement of the commission, concluded by this KASE
member and this person;
- at participation of KASE member in KASE trading, KASE and other members
thereof in any circumstances consider the deals conclusion orders, submitted
by this KASE member by order and/or at the expense and/or in the interests of
the third person, and the deals, concluded by this KASE member by order
and/or at the expense and/or in the interests of the third person, as
submitted (concluded) on the basis of the corresponding agreement of the
commission, concluded by this KASE member with the this person;
- KASE member is automatically disqualified from participation in the trades in
all financial instruments at default of the obligation on concluded on KASE
and not cancelled (not considered as cancelled) deal upon expiry of ten
working days from the day, on which these obligations must have been executed;
new admission of such KASE member to trades in financial instruments is made
on the basis of the Exchange Council decision.
By the aforementioned changes to the Rules on Repo Transactions Execution set
that in case of repo "nego" close deal default:
- within the second working day, following the repo closing date, the affected
repo transaction participant notifies KASE on his intent to cancel this
closing deal or maintain the deal until final execution of the obligations on
this closing deal by the guilty repo transaction participant;
- in case within the second working day, following the closing date, KASE
receives no indicated notification, it is considered that the affected repo
transaction participant expresses his intent to cancel this closing deal;
- in case the affected repo transaction participant expressed his intent to
cancel this closing deal, it is considered to be cancelled, and the guilty
repo transaction party is imposed an obligation to the other participant
thereof a forfeit in the amount of 30 % of the sum of this closing deal (50 %,
in case the securities which are the subject of repo transaction, were
subjected to delisting during its term), and to pay KASE a full sum of the
commission fee, accrued in regard of the repo transaction (including for the
second party of the deal), and the affected repo transaction party receives
the right to demand, in the order, established by the legislation of the
Republic of Kazakhstan and internal KASE documents, collection of losses in
the full amount in excess of the indicated forfeit from the guilty repo
transaction participant;
- in case the affected repo transaction participant expressed the intent to
reserve this closing deal, the obligations thereon of the guilty repo
transaction participant remain and he is imposed an obligation to pay to the
other repo transaction participant a forfeit in the amount of 0.1 % of the sum
of this closing deal for each day of default.
The indicated amendments were sent to AFS for concordance.
You can find at the KASE website:
- a copy of Almaty SMES decree of April 29, 2008 at:
http://www.kase.kz/files/mix/isk_bcc_290408.pdf
- the renewed text of the Regulations on Membership at:
http://www.kase.kz/geninfo/normbase/members.pdf
- the renewed text of the Rules on Repo Transactions Execution at:
http://www.kase.kz/geninfo/normbase/repo.pdf
[2008-05-04]