ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of October 17, 2011 No. 647

About approval of Rules of transactions with securities in the Kyrgyz Republic

According to the Law of the Kyrgyz Republic "About the security market" the Government of the Kyrgyz Republic decides:

1. Approve the enclosed Rules of transactions with securities in the Kyrgyz Republic.

2. This resolution becomes effective after 15 days from the date of official publication.

Approved by the Order of the Government of the Kyrgyz Republic of October 17, 2011 No. 647

Rules of transactions with securities in the Kyrgyz Republic

1. General provisions

1. These rules regulate process of the conclusion, registration, the address, and also transition of the property rights of securities according to the Civil code of the Kyrgyz Republic, the laws of the Kyrgyz Republic "About the security market", "About joint-stock companies", "About mortgage securities".

2. Security transactions the actions of physical persons and legal entities directed to establishment, change or the termination of the civil laws and obligations connected with securities are recognized.

3. The basic concepts used in these rules:

the bidder - the professional participant of the security market having the license for implementation of professional activity on securities, being the bidder of stock exchange and having the right according to stock exchange rules to announce orders and to make security transactions;

spread - the limits of price fluctuations of purchase and security sale calculated by means of market price of stock exchange, established for the purpose of prevention of manipulation by the prices;

the repo transaction - the transaction of purchase (sale) of security with the obligation of the return sale (purchase) through certain term at in advance determined price;

direct repo - the transaction of security sale with the obligation of repurchasing;

the return repo - the transaction of security purchase with the obligation of the return sale.

4. These rules regulate process of making of transactions with securities and extend to the concluded bargains in the territory of the Kyrgyz Republic:

- the transactions of purchase and sale of shares of joint-stock companies and other securities made on organized trading floors with mediation of professional participants of the security market which or in the procedure established by it are referred by the law to number of issued securities;

- transactions on gift agreements, exchanges.

Action of these rules does not extend to placement and the address of government securities, and also much changes and the terminations of the rights and/or obligations concerning securities:

- by a court decision;

- according to the decision of liquidation commission in case of realization of property of the liquidated subject;

- in case of inheritance of securities.

5. The professional participants of the security market performing broker activities when making transactions with securities at the request of clients, shall:

- refuse acceptance of orders on security purchase if there is no complete guarantee that the client can pay the securities purchased by it;

- not accept the order on security sale if there is no guarantee that the client has these securities;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info