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The document ceased to be valid since  November 18, 2014 according to article 54 of the Law of Turkmenistan of  November 8, 2014

LAW OF TURKMENISTAN

of October 28, 1993 No. 914-XII

About securities and stock exchanges in Turkmenistan

(as amended on 01-03-2014)

This Law determines the single principles of release and security circulation in the territory of Turkmenistan, basic provisions of activities of stock exchanges, regulates the rights and obligations of members of the security market and regulates their legal relationship.

Section I. General provisions

Article 1. Determination of concepts

1. Security - the property right certified by certain document and performed according to the procedure, specified in such document. Securities can exist in the form of the isolated documents or records on accounts. The documents confirming receipt of bank loan, introduction of the amounts of deposits of banks (except for deposit certificates of banks), debentures, wills, lottery tickets, insurance policies do not belong to securities.

2. Security circulation - purchase and sale of securities, and also other actions, stipulated by the legislation Turkmenistan, leading to change of the owner of securities.

3. In the security market of Turkmenistan the following securities have the address:

shares - the securities confirming shareholder right to participate in management of joint-stock company, distribution of its income, and in case of liquidation of joint-stock company - as well in distribution of its property;

bonds - the securities confirming the obligation of the issuer to compensate to the owner their nominal value in the terms provided in them with payment of the fixed percent;

the state debt obligations - the securities certifying the loan relations in which as the debtor the state on behalf of relevant organs acts.

The certificate - the certificate of ownership of person named in it of certain number of shares.

Options - the derivative securities certifying the right of their owner to purchase or security sale on favorable terms.

4. Shares, bonds and the state debt obligations are issued by the series equal among themselves on amount of the granted rights.

5. Issue - issue of securities in the address.

The issuer - the legal entity issuing (emitting) securities and incurring on its own behalf the obligation on them to owners of securities.

6. New types of securities, and also rules of release and the address of government securities of Turkmenistan which are not specified in this Law are determined by the Cabinet of Ministers of Turkmenistan.

7. Conditions and procedure for release and the circulation of bank certificates, bills of exchange, checks and other payment documents are established by the Central bank of Turkmenistan.

Article 2. Legislation on securities and stock exchanges

The relations connected with release and security circulation, activities of members of the security market and stock exchanges are regulated by this Law and other legal acts of Turkmenistan.

Activities in the security market of foreign legal entities and the companies with foreign investments are regulated by this Law and the Law of Turkmenistan "About foreign investments".

Section II. State registration of securities

Article 3. State registration of securities

1. Release and security circulation in the territory of Turkmenistan are permitted after their registration in the Ministry of Finance of Turkmenistan.

State registration of the securities issued by commercial banks is performed by the Central bank of Turkmenistan which in week time transfers to the Ministry of Finance of Turkmenistan information on registered securities for inclusion in the Unified state register.

Registration of issue of securities shall be made no later than 45 days from the moment of filing of application with appendix of necessary documents.

2. Holder of the Unified state register of the securities registered in Turkmenistan is the Ministry of Finance of Turkmenistan which is regular (at least once a month) publishes the list of registered securities again.

The securities which were registered get the state registration number in accordance with the established procedure.

3. Issue of securities, not registered, is not legal and involves their withdrawal by registering bodies at owners with the preliminary notice on the forthcoming withdrawal in the central press with subsequent compensation of money at the expense of the issuer.

4. Annual quotas and conditions of the admission to the address in the territory of Turkmenistan of the securities issued by foreign issuers are determined by the Cabinet of Ministers of Turkmenistan.

The procedure for the admission of securities to the address within the established quotas for the territories of Turkmenistan is determined by the Ministry of Finance of Turkmenistan.

5. Annual quotas of the admission to the address out of the territory of Turkmenistan of the securities issued or assumed to release by the issuers who are under jurisdiction of Turkmenistan taking into account obligations of Turkmenistan under interstate agreements are established by the Cabinet of Ministers of Turkmenistan.

The procedure for the admission of the specified securities to the address out of the territory of Turkmenistan is determined by the Ministry of Finance of Turkmenistan.

Section III. Members of the security market

Article 4. Members of the security market

1. Members of the security market are issuers of securities, investors and investment institutes.

2. The state, state bodies, executive bodies on places, the companies, including joint and foreign, and other legal entities registered in the territory of Turkmenistan can act as issuers.

3. Investor is the physical person or legal entity acquiring securities on its own behalf and at own expense. Foreign legal entities and citizens, and also stateless persons can act in the security market in Turkmenistan as investors according to the Law of Turkmenistan "About foreign investments".

4. Investment institute - the legal entity created for implementation of activities with securities as the intermediary (the financial broker), investment adviser, investment company, investment fund. Also citizens according to the current legislation can act as investment adviser.

Article 5. Activities of members of the security market

1. The investment institute can perform the activities in the security market in quality:

- intermediary (financial broker);

- investment adviser;

- investment companies;

- investment funds.

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