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LAW OF THE REPUBLIC OF ARMENIA

of September 8, 1993 No. S-0910-1-ZR-82

About security circulation

(as amended of the Law of the Republic of Armenia of 30.12.1997 No. 172)

This Law establishes basic provisions on release to placement, security circulation, regulation and control of activities of members of the security market in the territory of the Republic of Armenia.

Section I. General provisions

Article 1. The basic concepts used in this Law

1. Security - the document witnessing about established between the issuing and acquiring his faces property relations or the relations of loan.

2. The certificate of securities - the document replacing securities, certifying ownership of certain quantity of the securities specified in it.

3. The investor (investor) - physical person or the subject having the status of the legal entity, or not having the status of the legal entity acting as the owner of securities or person authorized by it.

4. The security market - the system of relations arising in connection with release, placement and security circulation.

5. Issue of securities (issue) - transaction on release into the stream of commerce of securities and their primary realization.

6. Security circulation - change of owners of securities as by purchase and sale of securities, and the different ways of alienation established by the legislation of the Republic of Armenia

7. Securities with the right of free circulation - such securities which change of owners is not controlled by person (issuer) issuing them, but can be considered for the purpose of dividend payout.

8. Securities with the right of limited circulation - such securities which change of owners is made with participation of their issuer or is controlled by the last.

9. The prospectus of the issue of securities - the document submitted by the issuer for receipt of permission to implementation of securities in which data on capacity to act of the issuer, its obligations, the purposes of issue of securities, the right of investors and other data are fixed.

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