KASE releases effective text of Law of Republic of Kazakhstan "On Securities Market"

11.11.08 15:14
/KASE, November 11, 08/ - Kazakhstan Stock Exchange (KASE) has released at its website at: http://www.kase.kz/files/normative_base/zakon_rzb.pdf the effective text of Law No. 461- II of the Republic of Kazakhstan "On Securities Market" of July 2, 2003. The text of the law was made effective in accordance with Law 72-IV of the Republic of Kazakhstan "On Making Amendments to some Legal Acts of the Republic of Kazakhstan on Issues of Sustainability of Financial System" of October 23, 2008. The following are the main amendments to the Law of the Republic of Kazakhstan "On Securities Market": - glossary structure has been changed partially (which is likely due to necessity to bring in compliance versions in Russian and Kazakh languages); these changes will be effective January 1, 2009; - concept "price gouging" has been substituted with concept "manipulation on securities market" with a broader definition; effective January 1, 2009; - concept "stockholder" has been given a more precise definition; effective January 1, 2009; - new concept "personal account unified system" as "database formed by central securities depository showing a total of data contained in share registers maintained by registrars" has been introduced; effective January 1, 2010; - new concept "central depository accounting system" as "aggregate of data formed by central depository conducting depository activities" has been introduced; effective January 1, 2009; - prior set special order of issue, placement and circulation of corporate bonds with circulation term not exceeding three months now covers corporate bonds circulating up to 12 months; - possibility of submission by issuers to the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS) of reports on results of securities placement before expiry of standard terms (within a month by results of every six months of placement and within a month after the end of placement) has been annulled; - securities deals registration order has been changed due to formation of the personal account unified system in the central depository (through indication in this system the data from share registers) and implementation of the principle "a deal, not shown in the personal account unified system, is not registered"; effective January 1, 2010; - at confirmation of rights on securities central securities personal account unified system data have become prior to registrar share register data (nominal holder data from nominal holding accounting system); effective January 1, 2010; - qualification requirements imposed on applicants for receipt of license on conduct of activities on securities market have been given a more precise definition; effective November 16, 2008; - requirements imposed on licensee administrative employees (applicant for receipt of license for carrying out activities on securities market) have been given a more precise definition; effective January 1, 2009; - order of acknowledgement of securities deals as concluded for price manipulative purposes has been changed by establishing a special committee, with functions to prepare expert opinions of the board of directors for AFS at the stock exchange board of directors; the committee has been authorized to acknowledge securities deals as concluded for price manipulative purposes; effective January 1, 2009; - authority to confirm set of rules of central securities depository has been transferred from the general meeting of its shareholders to the board of directors of the central depository; - text of article 84 of the law has been changed so that, it does not any more specify that making decisions on listing, delisting or change of category of securities list is a sole competency of the stock exchange board of directors; - functions and authorities of AFS were specified more precisely. The text of the law has been reformatted in accordance with the rules on formalization of normative documents approved by KASE with maximum preservation (inclusive of misprints) of the original edition. [2008-11-11]