Approved by the State Property Committee of the Republic of Uzbekistan of January 12, 1999

Procedure for implementation of shares of privatization investment funds to the population in case of primary distribution

I. General provisions

1.1. This Procedure according to the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of September 25, 1998 of N410 determines order of interaction of the organizations participating in distribution of shares of mutual funds.

1.2. In this Procedure the following concepts are used:

The Privatization Investment Fund (PIF) - open joint stock company which performs the following types of activity: attraction of financial resources in securities of the privatized companies due to issue of own shares, investment of own means and the obtained special public credits; securities trading; participation as the shareholder in development and increase in efficiency of the companies which shares he holds;

The trustee investment assets (DU) the legal entity performing activities for management of investment assets of investment funds;

The center for coordination and market development of securities in case of Goskomkonkurention of the Republic of Uzbekistan (further - the Center) authorized state body on regulation of the security market;

Central Securities Depository (further - depositary) the state depositary which provides uniform storage system, accounting of the rights and movement of issued securities on custody accounts in depositaries;

The distributor - DU of mutual fund or other professional participant of the security market having the right of making of transactions on purchase and sale of securities with which DU signed the agreement on distribution of shares of mutual fund;

Item of distribution of shares of mutual funds (PR) - Item of the distributor on order taking and money on share purchase from citizens and issue of shares or certificates;

The buyer - the investor - the physical person who is the citizen of the Republic of Uzbekistan.

II. Requirements to the distributor

2.1. The distributor has the right to distribution of shares of mutual fund after obtaining in depositary of unique code of the distributor and format of data (appendix N 1) on which it shall provide information in depositary.

2.2. The distributor has the right to distribute shares only of those mutual funds which DU signed with it the agreement on realization. Fee of the distributor is performed in accordance with the established procedure DU from the settlement account of mutual fund on the actual distribution of shares of mutual fund. The conclusion of the agreement does not exempt DU from liability for distribution, accounting and the reporting under shares and money of mutual fund.

Item 2.3 ceased to be valid

III. Procedure for distribution of shares

3.1. According to the request of the buyer of PR or the distributor fill and certify the sign and seal three copies of the certificate (appendix N 2) which shall contain data on the buyer, the name of mutual fund, the number of the acquired shares and size of the handed-over amount, and also the warning of inadmissibility of purchase more than 5% of actually paid authorized capital of one mutual fund. The buyer grants the sum for the acquired shares cash and, having signed all copies of certificates (for control of correctness of data entry), receives one copy of the certificate on hands, the second remains in PR or at the distributor, and third is given to DU.

Item 3.2 ceased to be valid

3.3. PR daily, and the distributor according to the contract with DU, but at least once a week, shall sort all requests by mutual funds, then calculate the total amount falling on each mutual fund and to draw up the payment order in which except other obligatory details the following data shall be determined:

- IFI, settlement account of mutual fund;

- name and custody account of mutual fund;

- unique code and number PR of the distributor;

- number of the payment order;

- payment amount.

In all records transferred to depositary and DU, relating to this payment it is necessary to put down number of the payment order and payment date.

3.4. By e-mail sends PR processed thus information to the distributor, and the distributor daily till 12 o'clock, information collected for previous day by e-mail, sends to depositary.

3.5. The distributor on the electronic medium and in the form of the subscription list (Appendix N 3) transfers data to depositary and DU.

3.6. Along with data transmission of PR and the distributor transfer money to the settlement account of mutual fund.

3.7. DU at least once a week shall provide in depositary bank statements about revenues to settlement accounts of mutual funds.

3.8. The depositary performs maintaining cash accounts of mutual funds by information input, containing in the bank statements provided to DU.

3.9. The depositary no later than two days from the date of receipt of information on requests and cash receipts on settlement accounts of mutual funds carries out the following transactions:

3.9.1. According to number of mutual fund, code of the distributor or PR and number of the payment order the depositary reveals all records corresponding to each revenues to the account. If the amount on payment and the amount of all requests corresponding to this payment does not match, then the depositary does not perform the statement and within two days reports about it to the distributor.

3.9.2. If the amount matches, then the depositary carries out the group transaction on processing of statements providing the following actions:

- opens for Depot the account on the buyer (in case of its absence);

- transfers from the account of mutual fund to the account the share purchaser, specified in the request, placing them at the same time into the sub-account "Depot of clients of depositary (outdoor storage)".

3.9.3. The depositary following the results of the performed operations transfers data on the shareholder and the number of the shares acquired by it to the distributor.

Item 3.10 ceased to be valid

3.11. The depositary within 3 working days from the date of execution of the translation of shares from the account of mutual fund into the account of the buyer prints out account statements of depot and transfers them to the distributor. At the same time the depositary sorts previously account statements of depot on distributors.

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