Document from CIS Legislation database © 2003-2020 SojuzPravoInform LLC

LAW OF THE REPUBLIC OF KAZAKHSTAN

of July 2, 2003 No. 461-II

About the security market

(as amended on 25-11-2019)

This Law governs the public relations arising in the course of release, placement, the address and repayment of issued securities and other financial instruments, feature of creation and activities of subjects of the security market, determines procedure for regulation, control and supervision of the security market for the purpose of ensuring safe, open and effective functioning of the security market, protection of the rights of investors and security holders, fair competition of members of the security market.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

For the purposes of this Law the following basic concepts are used:

1) the agency bond - the bond which issuer is the financial agency or the legal entity performing the redemption of mortgage loans of the physical persons which are not connected with business activity which hundred percent of shares belong to National Bank of the Republic of Kazakhstan;

2) the convertible security - the security of joint-stock company which is subject to replacement by its security of other type on the conditions and according to the procedure determined by the prospectus of release;

3) the underwriter - the professional participant of the security market having the license for implementation of broker and dealer activities and rendering services to the issuer on release and placement of issued securities;

3-1) method of open tenderings - method of the biddings in case of which the bidder submitted the application and presumably are present the competition between potentially any number of bidders;

4) security - set of the certain records and other designations certifying property rights;

5) nominal continence of securities - making from name and at the expense of security holders of certain legal acts according to the agreement of nominal continence or according to this Law, and also accounting and confirmation of the rights on securities and registration of security transactions of such holders;

6) the security quotation - the price of demand and (or) the offer announced on security at a given time in the organized market of securities;

7) the primary security market - placement of the announced issued securities by the issuer (the underwriter or issued consortium), except for further placement by the issuer of the issued securities which are earlier redeemed by it in the secondary security market;

7-1) integrated information system of the stock exchange market of securities - complex of material means and internal documents of stock exchange with which use exchange of quotations is supported and are provided possibility of the conclusion of transactions between its users;

8) the secondary security market - the legal relationship developing between subjects of the security market in the course of the circulation of the placed securities;

9) system of registers of security holders - set of information about the issuer, the issued securities and their holders providing identification of holders of the rights on issued securities to certain timepoint, registration of security transactions, and also nature of the registered restrictions for the address or implementation of the rights on these securities, and other data according to regulatory legal act of authorized body on regulation, control and supervision of the financial market and financial organizatsiyupolnomochenny regulating authority, to control and supervision of the financial market and the financial organizations;

10) manipulation in the security market - the actions of subjects of the financial market directed to establishment and (or) maintenance of the prices (rates) of securities and other financial instruments, including foreign currencies and derivative financial instruments, above or below those which were established as a result of objective ratio of the supply and demand, on creation of visibility of trade in security or other financial instrument, on transaction with use of insider information;

11) the professional participant of the security market - the legal entity performing the activities in the security market based on the license or according to legal acts of the Republic of Kazakhstan;

12) the security holder - the person registered in system of registers of security holders or system of accounting of nominal continence, having rights on securities and also mutual investment fund which holders of shares have on the right of common ownership the rights on the securities which are part of assets of mutual investment fund;

13) underlying asset - the standardized batches, securities, currency, financial instruments and other indicators determined by internal documents of the organizer of the biddings;

14)

15)

15-1) integrated information system of the over-the-counter market - complex of material means and internal documents of the central depositary with which use exchange of quotations is supported and are provided possibility of the conclusion of transactions in the unorganized market of securities;

16) the broker - the professional participant of the security market making transactions with issued securities and other financial instruments on the order for the account and for the benefit of the client;

17) the order - the document submitted to the professional participant of the security market by the holder (acquirer) of financial instruments with indication of implementation of certain action concerning the financial instruments or money intended for acquisition of financial instruments belonging to it;

17-1) single operator - the single operator in the sphere of accounting of state-owned property determined according to the legislation of the Republic of Kazakhstan on state-owned property;

18)  No. 166-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 02.07.2018;

19) the individual investor - the investor who is not the institutional investor;

20) delisting - temporary or permanent exception of securities of the list of the organizer of the biddings;

21) the depositary receipt - the derivative issued security confirming the property right to certain number of the issued securities which are underlying asset of this depositary receipt;

22) depository activity - activities for rendering services of nominal continence of securities for other nominee holders, the organizations who are clients of the central depositary and to implementation of payment under transactions with financial instruments;

23)  No. 166-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 02.07.2018;

24) the depositor - the client of the central depositary performing the functions determined by Item 1 of article 59 of this Law;

25) default - default on obligations of issued securities and other financial instruments;

26) the dealer - the professional participant of the security market making transactions with issued securities and other financial instruments in the interests and at own expense in the unorganized market of securities and in the organized market of securities with the right of direct access to it;

26-1) Voluntary accumulation pension fund - the professional participant of the security market performing based on the license of authorized body on regulation, control and supervision of the financial market and the financial organizations activities for management of investment portfolio with the right of attraction of voluntary pension contributions;

27) the announced issued securities - securities which release is registered by authorized body on regulation, control and supervision of the financial market and the financial organizations;

28) personal account - set of the records containing in system of registers of the security holders or system of accounting of nominal continence allowing to identify unambiguously the registered person for the purpose of registration of transactions and accounting of the rights on issued securities and other financial instruments;

29) the statement from personal account - the document which is not security, issued by the central depositary or the nominee holder and confirming the rights of the registered person on financial instruments on certain timepoint;

30) No. 524-IV PK Terminated since 01.01.2013 according to the Law of the Republic of Kazakhstan of 28.12.2011

31) the investment project - complex of the actions directed to achievement of certain results from investment and providing investments, and also realized during certain term of time and having complete nature;

32) investment committee - the collegiate organ of the professional participant of the security market (except for transfer - the agent) performing adoption of investment decisions concerning own assets of the professional participant of the security market and (or) assets transferred in investment management to the managing director of investment portfolio;

33) investment portfolio - the set of different types of financial instruments or property of investment fund which is in property or management of the subject of the security market according to the requirements established by the legislation of the Republic of Kazakhstan on investment and venture funds;

34) the managing director of investment portfolio - the professional participant of the security market performing on its own behalf in interests and for customer account activities for management of objects of the civil laws;

35) the insider - person having access to insider information;

36) insider information - reliable information about securities (derivative financial instruments), transactions with them, and also about the issuer who issued (provided) securities (derivative financial instruments), the activities performed by him, being trade secret, and also other information not known to the third parties which disclosure can affect change in value of securities (derivative financial instruments) and activities of their issuer;

37) the institutional investor - the legal entity raising funds for the purpose of implementation of investments according to the legislation of the Republic of Kazakhstan;

38) the infrastructure bond - the bond on which obligation fulfillment of the issuer is provided with the guarantee of the state within the agreement of public-private partnership, including the agreement of concession, on implementation of the infrastructure project concluded between the state and the issuer, in the amount, the corresponding cost of the object transferred to the state;

39) the mortgage bond - the bond provided with pledge of rights to claim under agreements of mortgage loan (including pledge of mortgage certificates), and also other highly liquid assets which list is established by regulatory legal act of authorized body on regulation, control and supervision of the financial market and the financial organizations;

40) Islamic special finance company - the legal entity created according to this Law in form of business of joint-stock company or limited liability partnership, performing release of Islamic securities and also the state-owned Islamic special finance company;

41) the allocated assets of Islamic special finance company - property and the rights to claim acquired by Islamic special finance company, receipts on them;

42) Islamic securities - issued securities which conditions of release correspond to the principles of Islamic financing, certifying right of possession indivisible share on tangible assets and (or) the right to the order assets and (or) the income from their use, services or assets of specific projects for which financing these securities were issued;

43) repayment of Islamic securities - payment in the terms established by the prospectus of release of Islamic securities at the expense of the allocated assets of amount of money, the respective share pro rata to ratio of quantity of the Islamic securities belonging to the holder to total quantity of Islamic securities of this release;

44) the representative of holders of Islamic securities - the organization which is acting for the benefit of holders of Islamic securities based on the contract signed with the issuer;

45) nominal value of Islamic securities - the monetary value of cost of Islamic securities paid by the investor in case of acquisition of Islamic securities within their primary placement on the conditions established by the prospectus of release of Islamic securities;

46) custodian - the professional participant of the security market performing accounting of financial instruments and money of clients and confirmation of the rights by them, storage of documentary financial instruments of clients with acceptance on himself obligations on their safety and other activities according to legal acts of the Republic of Kazakhstan;

47) the client - person using or intended to use services of the professional participant of the security market;

47-1) clearing participant - the legal entity who signed the contract on implementation of clearing servicing with the clearing organization (the central partner);

47-2) guarantee fund of the clearing organization (the central partner) - the means created at the expense of fees of clearing participants and intended for decrease in risks of activities of the clearing organization (the central partner) when servicing clearing participants;

47-3) reserve fund of the clearing organization (the central partner) - the means created at the expense of own assets of the clearing organization (the central partner) and intended for decrease in risks of activities of the clearing organization (the central partner);

48) the Kazakhstan depositary receipt - the derivative issued security confirming the property right to certain number of issued securities, issued according to the legislation of the Republic of Kazakhstan;

49) the secured bond - the bond on which obligation fulfillment of the issuer is fully or partially provided with pledge of property of the issuer, guarantee of bank;

50) clearing activities for transactions with financial instruments - process of determination, check and information transfer about requirements and (or) obligations of participants of the transaction with financial instruments;

51) dematerialization of financial instruments - change of method of confirmation of the rights certified by the financial instruments issued in documentary form by confirmation of these rights electronic records in system of accounting of the central depositary;

52) the financial market - set of the relations connected with rendering and consumption of financial services and the address of financial instruments;

52-1) covenants (restrictions) - conditions which approach will entail emergence of obligations at the issuer of the non-state bonds established by the prospectus of release of non-state bonds;

53) stock exchange - the legal entity created in form of business of joint-stock company which at least twenty five percent from total quantity of voting shares belong to National Bank of the Republic of Kazakhstan, the performing organizational and technical supply of the biddings by their direct carrying out with use of trade systems of this organizer of the biddings;

54) trade system of stock exchange - complex of material means, internal documents of stock exchange and other necessary assets and procedures with which use bargains with issued securities and other financial instruments between members of this stock exchange are concluded;

55) the trader of stock exchange - the physical person authorized on the conclusion of transactions and accomplishment of other actions on behalf of the member of stock exchange with use of trade system of this stock exchange;

55-1) official listing of stock exchange - part of the list of stock exchange, for inclusion in which and stay in which securities and issuers of securities conform to requirements of regulatory legal act of authorized body for regulation, control and supervision of the financial market and the financial organizations and internal documents of stock exchange;

55-2) corporate events - the events having significant effect on activities of the issuer, infringing on the interests of security holders and issuer's investors determined by article 102 of this Law;

56) bank entry security - the security issued in paperless form (in the form of set of electronic records);

57) documentary securities - the securities issued in documentary form (on paper or other material carrier with possibility of direct reading content of security without use of special technical means);

58) leverage - ratio between the sizes of obligations and equity of the issuer;

59) listing - inclusion of securities in category and (or) the sector of the list of securities of stock exchange, for inclusion and stay in which internal documents of stock exchange establish special (listing) requirements to securities and their issuers;

60) the licensee - the legal entity performing activities in the security market based on the license granted by authorized body on regulation, control and supervision of the financial market and the financial organizations;

60-1) marginal transaction - the transaction of purchase and sale of securities made by the broker and (or) the dealer having rights of account management of clients as the nominee holder of securities based on the order of his client, calculation for which is made with use of the money or securities provided by the broker and (or) the dealer to the client on the terms of recoverability, urgency and the paid nature;

61) non-state issued securities - shares, bonds and other issued securities which are not the government issued securities;

61-1) state-owned Islamic special finance companies - the Islamic special finance company created according to the decision of the Government of the Republic of Kazakhstan by authorized body on state-owned property in form of business of limited liability partnership, performing release of the government Islamic securities;

62) the government issued security - the issued security certifying the rights of her holder concerning loan in which act as the borrower the Government of the Republic of Kazakhstan, National Bank of the Republic of Kazakhstan and local executive bodies, or certifying the rights of her holder to receipt of the income from use of assets based on the lease agreement;

63) faultless goodwill - availability of the facts confirming professionalism, conscientiousness, lack of not removed or unspent conviction, including lack of the judgment which took legal effect about application of criminal penalty in the form of deprivation of the right to hold leading employee position of the financial organization, bank and (or) insurance holding and to be large member (large shareholder) of the financial organization for life;

64) conflict of interest - situation in case of which interests of professional participants of the security market and their clients do not match among themselves;

65) system of accounting of nominal continence - the system of accounting of the professional participant of the security market rendering services of nominal continence, containing the information about security holders and the securities belonging to them, providing their identification on certain timepoint, registration of security transactions, and also nature of the registered restrictions for the address or implementation of the rights on these securities, and other data according to regulatory legal act of authorized body on regulation, control and supervision of the financial market and the financial organizations;

66) bond redemption - actions of the issuer for retirement of the placed bonds by payment of remuneration and nominal value (without the purpose of the subsequent sale) bonds or its convertings in the share (shares) of the same issuer according to the procedure, established by the prospectus of bond issue;

67) the representative of bondholders - the organization which is acting for the benefit of bondholders based on the agreement signed with the issuer in the course of the circulation of bonds in the secondary security market, payments of remuneration for bonds and their repayments;

68) the bonded program - bond issue within which the issuer has the right to perform several bond issues, including with various structure of release determined by the respective avenue of release;

69) nominal value of the bond - the monetary value of bond value determined in case of its release on which the remuneration expressed as a percentage according to the coupon bond, and also the amount which is subject to payment to the bondholder in case of its repayment is charged;

70) blocking - the temporary ban on registration of civil security transactions in system of registers of security holders and system of accounting of nominal continence performed for the purpose of guaranteeing safety of securities;

71) originator - the legal resident person of the Republic of Kazakhstan conforming to requirements of authorized body for regulation, control and supervision of the financial market and the financial organizations, transferring Islamic special finance company assets based on the purchase and sale agreement and (or) being the founder of Islamic special finance company and also authorized body on management of state-owned property;

72) the placed issued securities - the issued securities which are completely paid by investors in the primary security market;

73) the central depositary - the specialized non-commercial joint-stock company performing types of activity, stipulated in Item 2-1 article 45 of this Law;

74) system of accounting of the central depositary - the set of data created by the central depositary when implementing depository activity and activities for maintaining system of registers of security holders;

75) the central partner - the organization which is performing clearing activities for transactions with financial instruments, and also separate types of banking activities and acting as the party according to the bargains concluded in the organized and unorganized security markets, and also at commodity exchange for each seller and each buyer of the financial instrument;

76) the professional organization - the legal entity created by professional participants of the security market in the form of association (union) for the purpose of establishment of single rules and standards of their activities in the security market;

77) the applicant - the legal entity who provided to authorized body on regulation, control and supervision of the financial market and the financial organizations documents for the purpose of receipt of the license for implementation of activities in the security market;

78) prudential standard rates - the financial performance of regulations established by authorized body on regulation, control and supervision of the financial market and the financial organizations and which are subject to observance by the licensee;

79) reserve fund - the means intended for covering of the losses resulting from investment of the money received from placement of Islamic securities, procedure for forming and which uses it is determined by the prospectus of release of Islamic securities;

80) rating - the individual numerical and alphabetic indicator of assessment establishing relative creditworthness of certain issuer or quality and reliability of its securities;

81) the organizer of the biddings - stock exchange or the central depositary when implementing of organizational and technical supply of the biddings by it by operation and maintenance of system of exchange of quotations between clients of the central depositary according to this Law;

82) the list of stock exchange - the list of the financial instruments permitted to the address in trade system of stock exchange constituted according to internal documents of stock exchange;

83) payment agent bank or the organization performing separate types of banking activities;

84) transfer agent - the professional participant of the security market rendering services in acceptance and document transfer (information) between the clients;

85) derivative securities - the securities certifying the rights in relation to underlying asset of these derivative securities;

86) the registered person - person having the personal account opened in system of accounting of the professional participant of the security market;

87) No. 524-IV PK Terminated since 01.01.2013 according to the Law of the Republic of Kazakhstan of 28.12.2011

88) No. 30-V ZRK is excluded according to the Law of the Republic of Kazakhstan of 05.07.2012

89) the organized market of securities - the sphere of the circulation of issued securities and other financial instruments, transactions with which are performed according to internal documents of stock exchange;

90) the unorganized market of securities - the sphere of security circulation and other financial instruments in which security transactions and other financial instruments, including foreign currencies and derivative financial instruments, are performed without observance of the requirements established by internal documents of stock exchange;

91) the international identification number (ISIN code) - the alphanumeric code assigned by the central depositary for securities and other financial instruments for the purpose of their identification and systematization of accounting;

92) hedging - the transactions with derivative financial instruments made for the purpose of compensation of the possible losses resulting from the adverse change in price or other indicator of object of hedging. At the same time under objects of hedging assets and (or) obligations, and also the flows of money connected with the specified assets and (or) obligations or with the expected transactions are recognized;

93) foreign government issued security - the issued security certifying the rights of her holder in the relations of loan in which as the borrower the government of foreign state, or other security carried according to the legislation of foreign state to government securities acts;

94) structure of release - the data about (about) the quantity of issued issued securities, their type, nominal value (for bonds);

95) internal documents - documents which regulate conditions and procedure for activities of the subject of the security market, its bodies, structural divisions (branches, representations), workers, rendering services and procedure for their payment;

96) issued securities - the securities having within one release uniform signs and details, placed and addressing based on single conditions for this release;

97) the circulation of issued securities - making in the secondary security market of civil security transactions;

98) the State register of issued securities - set of data on releases of issued securities and their issuers created by authorized body on regulation, control and supervision of the financial market and the financial organizations;

99) placement of issued securities - security sale in the primary security market;

100) the prospectus of release of issued securities - the document containing the information about (o) issuer, its financial condition assumed to sale issued securities, release amount, the number of securities in release, the procedure and procedure for their release, placement, the address, dividend payout (remuneration), repayment and other information which can influence the decision of the investor on security purchase;

101) release of issued securities - the actions of the issuer directed to emergence of issued securities as object of the civil laws or set of certain securities, placement, the address and which repayment are performed according to the prospectus of release of these issued securities;

102) cancellation of release of issued securities - the termination of existence of issued security as object of the civil laws;

103) issued consortium - the consolidation of underwriters created on the basis of cooperation agreement for the purpose of rendering services to the issuer in release and placement of issued securities;

104) the issuer - person performing release of issued securities.

Article 2. Legislation of the Republic of Kazakhstan on the security market

1. The legislation of the Republic of Kazakhstan on the security market is based on the Constitution of the Republic of Kazakhstan and consists of the Civil code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

3. Regulations of this Law are applied to the legal relationship arising in the course of release, placement, the address and repayment of government securities, issued securities, other financial instruments issued by the banks, the organizations performing separate types of banking activities, the insurance (reinsurance) organizations, investment funds, the single accumulation pension fund, the Voluntary accumulation pension funds if other is not established by legal acts of the Republic of Kazakhstan.

4. And other legal entities performing activities within the specific mode of regulation, regulation of this Law and regulatory legal acts of authorized body entered according to the Law of the Republic of Kazakhstan "About state regulation, control and supervision of the financial market and the financial organizations" on regulation, control and supervision of the financial market and the financial organizations, National Bank of the Republic of Kazakhstan accepted according to this Law extend to professional participants of the security market in the limits provided by conditions of specific mode of regulation.

Article 3. State regulation of the security market

1. State regulation of the security market is performed by authorized body on regulation, control and supervision of the financial market and the financial organizations (further - authorized body).

2. Authorized body:

1) determines in coordination with the Government of the Republic of Kazakhstan priorities in the field of forming and market development of securities;

2) pursues state policy on ensuring functioning of the security market in the Republic of Kazakhstan and to forming of infrastructure of the national security market, protection of the rights and interests of investors in the security market;

3) adopts regulatory legal acts concerning regulation, control and supervision of the security market and subjects of the security market, obligatory for execution by subjects of the security market, other physical persons and legal entities in the territory of the Republic of Kazakhstan;

4) recognizes assets of the financial market as securities;

5)  No. 166-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 02.07.2018;

6) is conducted by the State register of issued securities, the electronic register of the licensor and the register of operating authorities in the security market;

Stops 7) and resumes placement of non-state issued securities and derivative securities, cancels releases of non-state issued securities and derivative securities;

7-1) determines types and requirements to mass media which can be used for the publication of information on the activities of subjects of the security market which are subject to obligatory publication according to this Law and other legal acts of the Republic of Kazakhstan;

8) determines rules of implementation of professional activity in the security market, requirements to conditions and procedure for making by professional participants of the security market of security transactions and (or) derivative financial instruments, to accounting of these transactions;

9) is recognized by activities in the security market as professional;

10) is established by procedure for issue, suspension and deprivation of licenses for implementation of types of professional activity in the security market;

11) establishes types of prudential standard rates and other regulations, obligatory to observance, and limits of financial stability of licensees, procedure and method of calculation of their values;

12) grants licenses on types of activity in the security market, stops, resumes action and deprives of licenses;

13) it is excluded

14) is issued by consent to appointment (election) of leading employees:

central depositary;

single operator;

applicants (licensees);

15)  No. 262-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 03.07.2019;

16) it is excluded

17) it is excluded

18) it is excluded

19) within the competence exercises regulation, control and supervision of activities:

issuers;

central depositary;

single operator;

licensees;

19-1) applies to professional participants of the security market of measure of supervising reaction, the stipulated in Clause 3-3 presents of the Law, and (or) sanction, the stipulated in Clause 3-6 these Laws;

19-2) applies to issuers limited corrective actions and (or) sanctions, the stipulated in Clause 3-1 this Law;

19-3) has the right to take a legal action for the purpose of protection of the rights and legitimate interests of security holders;

19-4) sends to the professional organization instructions, obligatory for execution;

20) it is excluded

21) publishes information on questions of the security market with use of the information about subjects of the security market which is at its disposal (except for the data which are the commercial and protected by the law other secret), and also information on the measures taken by it to subjects of the security market;

22) interacts with foreign regulating authorities of the security markets concerning coordination of the taken measures for regulation of the security markets, prevention and suppression of offenses in the security markets and to other questions which are of mutual interest;

22-1) determines conditions and procedure for suspension and renewal of the biddings on the stock exchange;

22-2) determines procedure and conditions of provision by nominee holders of electronic services;

23) performs other powers provided by this Law, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

3. The National Bank of the Republic of Kazakhstan in coordination with authorized body determines the list, reporting forms, terms and procedure for its representation by the central depositary, single operator, licensees and large members of managing directors of investment portfolio in National Bank of the Republic of Kazakhstan.

Article 3-1. The limited corrective actions and sanctions applied by authorized body to the issuer

1. In cases of detection of violations of the law of the Republic of Kazakhstan by authorized body about the security market and about joint-stock companies, identifications of wrongful acts or failure to act of officials of the issuer, and also failure to carry out of other requirements of authorized body provided by this Law and the Law of the Republic of Kazakhstan "About joint-stock companies" the authorized body has the right to apply one of the following limited corrective actions to the issuer:

1) to give the written instruction, obligatory for execution;

2) to issue the written warning;

3) to constitute the written agreement;

4)  No. 168-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 02.07.2018;

2.  No. 168-VI ZRK is excluded according to the Law of the Republic of Kazakhstan of 02.07.2018;

3. The written instruction is specifying to the issuer on acceptance of the remedial measures, obligatory to execution, directed to elimination established violations and (or) the reasons, and also conditions promoting their making at the scheduled time, and (or) need of representation at the scheduled time of the actions plan on elimination established violations and (or) the reasons, and also conditions promoting their making (further - the actions plan).

In the actions plan submitted in time, established by the written instruction, descriptions of violations, the reasons which led to their origin, the list of the planned actions, terms of their implementation and also responsible officials are specified.

Appeal of the written instruction of authorized body in court does not stop its execution.

4. The written prevention is the notification of authorized body on possibility of application to the issuer of sanctions, stipulated in Item the 10th this Article, in case of identification by authorized body within one year after pronouncement of this prevention of further violation of regulations of the legislation of the Republic of Kazakhstan similar to violation for which the written warning is issued.

5. The written agreement is the written agreement concluded between authorized body and the issuer about need of elimination of the revealed violations and approval of the list of measures for elimination of these violations with indication of terms of their elimination and (or) the list of restrictions which are assumed by the issuer, before elimination of the revealed violations.

The written agreement is subject to obligatory signing from the issuer.

6. The issuer shall notify authorized body on execution of the measures specified in the written instruction and the written agreement in the terms provided by these documents.

7. The procedure for application of limited corrective actions to the issuer is determined by regulatory legal acts of authorized body.

8. The authorized body has the right to apply sanctions against the issuer regardless of the limited corrective actions applied earlier to it.

9. In case of lack of possibility of elimination of violation in the terms established in the actions plan, the written agreement or the written instruction for the reasons, independent of the issuer, completion date of the actions plan, written agreement or written instruction can be extended by authorized body according to the procedure, established by regulatory legal act of authorized body.

10. The authorized body has the right to apply to the issuer of the sanction in the form of imposing of administrative punishment according to the procedure, provided by the Code of the Republic of Kazakhstan about administrative offenses.

Article 3-2. Measures of early reaction

1. For the purpose of protection of the rights and interests of investors in the security market and ensuring financial stability of the organizations performing broker and (or) dealer activities in the security market and (or) activities for management of investment portfolio, the authorized body performs the analysis of activities of the specified organizations for identification of the factors influencing deterioration in their financial position, established by regulatory legal act of authorized body.

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