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LAW OF THE KYRGYZ REPUBLIC

of July 26, 1999 No. 92

About investment funds

(as amended on 29-03-2019)

Accepted by General Court of Jogorku Kenesh of the Kyrgyz Republic on June 21, 1999

Chapter I. General provisions

This Law determines legal status of investment funds, establishes features of their organization and activities in the Kyrgyz Republic.

Article 1. Concept of investment fund

1. Investment funds are the forms of collective investment provided by this Law created for attraction of money by means of release and public placement of the securities and the subsequent diversified investment of the raised funds into investment assets. In the cases established by this Law, attraction of money in investment funds can be performed by means of the personal offer.

2. In the Kyrgyz Republic as investment funds joint-stock investment funds and mutual investment funds are effective.

3. Joint-stock investment fund is recognized the open joint stock company which:

- raises funds of physical persons and legal entities by public sale of shares;

- invests the raised funds and means received in the course of investing activities in investment assets.

Paragraph fourth and fifth ceased to be valid

4. Joint-stock investment funds are not recognized this Law:

a) commercial banks and other credit institutes;

b) insurance companies;

c) holding companies;

d) dealers;

e) brokers;

e) depositaries and clearing organizations.

Joint-stock investment funds, in addition to above-mentioned, are not also other joint-stock companies regulated by special laws and other regulatory legal acts.

5. Joint-stock investment funds have no right to be engaged in other activities other than the activities of investment funds determined according to this Law and other regulatory legal acts of the Kyrgyz Republic and also to change type of the activities.

6. Mutual investment fund the complex of the isolated property without formation of legal entity consisting of the investment assets of clients received by managing company in trust management by public offer of investment shares, and also the property received by managing company in the course of trust management is recognized this Law. In the cases established by this Law, attraction of money in mutual investment fund can be performed by means of the personal offer of investment shares.

Article 2. The terms and determinations used in this Law

Paragraph one of ceased to be valid according to the Law of the Kyrgyz Republic of 29.03.2019 No. 41.

The affiliate - any physical person or legal entity which directly or indirectly can influence the made decisions of other physical person or legal entity in force:

- the signed agreement;

- ownerships of the large block of shares (share);

- the fact that it is official of the legal entity;

- that physical person or legal entity concerning which other physical person or legal entity can exercise control on the above-stated bases.

The affiliate of the legal entity his executive officials, the shareholder (participant) or any company owning ten and more percent of its voting shares (deposits, shares) are also recognized (for open joint stock companies with five and more percent).

The official - the chairman, the board member, the head and the member of executive body of investment fund or managing company, and also person recognized by the official according to the legislation of the Kyrgyz Republic regulating activities of the commercial organizations.

The official of investment fund - the board members, members of internal executive body of investment fund and officials of managing company of investment fund responsible for management of investment fund.

Investment assets of investment fund - assets in which the investment fund performs investments. The structure and structure of investment assets are determined by the Government of the Kyrgyz Republic.

Not redeemed security - security which is not redeemed by investment fund at the request of its owner.

The independent investment fund auditor - the auditing organization which is not:

- affiliate of this investment fund;

- affiliate of the affiliate of investment fund.

The independent appraiser of property of investment fund - the physical person or legal entity performing on the basis of the agreement with investment fund assessment of non-state property.

Total quantity of securities in the address - total quantity of the placed securities of investment fund minus total quantity of the redeemed securities. The total quantity of securities in the address for open-end investment fund and interval fund changes. For closed-end investment fund the total quantity of securities in the address is permanent, except as specified presentations of investment shares to obligatory repayment based on article 18-1 of this Law.

The placed security - the security issued by joint-stock investment fund or managing company of mutual investment fund and which is at its owner, except for the security redeemed by the joint-stock investment fund or managing company of mutual investment fund which issued this security.

Depository activity - activities for registration of the rights and (or) transition of the rights to securities and accounting, and (or) storage of these securities and money intended for implementation of transactions, and also obtained from transactions based on the agreement with the owner or the nominee holder of these securities (the depositary agreement).

The depositary of investment fund - the legal entity having the corresponding license who stores securities and assets of investment fund controls the address of assets of investment fund according to the investment declaration and performs other functions according to agreement provisions with joint-stock investment fund or managing company of mutual investment fund.

Managing company - the professional participant of the security market performing on its own behalf in interests and for customer account of managing company activities for trust management of investment assets.

Activities of investment fund - activities for attraction of money by means of release and public placement of the securities and the subsequent diversified investment of the raised funds into securities and other investment assets.

Investing activities of investment fund - attachment (investment) of means of investment fund into investment assets and set of practical actions for ensuring return of attachments.

Investment revenues - income gained by investment fund in the course of investing activities.

Earnings capitalization - dividend payout in the form of shares of investment fund.

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