of November 17, 2015 No. 774
About approval of the Regulations on implementation of the state blocks of shares through the organizer of trade in the security market
According to article 14 of the Law of the Kyrgyz Republic "About privatization of state-owned property in the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:
1. Approve Regulations on implementation of the state blocks of shares through the organizer of trade in the security market according to appendix.
Approved by the Order of the Government of the Kyrgyz Republic of November 17, 2015 No. 774
1. This Provision regulates conditions and procedure for implementation of the state blocks of shares by method of placement and sale of shares through the organizer of trade in the security market on the stock exchange.
2. In this Provision the following main terms and concepts are used:
depositary - the professional participant of the security market performing depository activity on storage of securities, accounting of the rights and transition of the property rights to securities;
clearing - offsetting of mutual requirements and obligations of the parties participating in the calculations perfromed as a result of transactions with securities;
the custody account - the set of records in accounting system of depositary providing registration of details of the depositor, accounting of its securities and fixing of the rights affirmed by these securities;
authorized body - authorized state body in the sphere of management of state-owned property;
bidders are the professional participants of the security market having the license for implementation of broker and/or dealer activities in the security market of the Kyrgyz Republic, who underwent the procedure of registration as bidders and signed the relevant agreement.
3. The authorized body offers for sale the state blocks of shares of joint-stock companies on the stock exchange according to the Privatization program of state-owned property in the Kyrgyz Republic according to the chosen privatization method.
4. The authorized body performs sale of the state blocks of shares on trading floor of stock exchange through the representative - the professional participant of the security market performing broker activities and being the bidder on the stock exchange. The agreement in which cross liabilities of the parties, including the obligation selling the stocks owned by the state not below the minimum price established by authorized body are determined is signed with the broker. In need of the agreement other conditions can be provided.
5. The authorized body determines the representative on tender basis. As the representative of authorized body input enters trade system of the requests for sale exposed on trading in shares and the conclusion of contracts with participants of stock exchange trading.
6. Clearing and calculations for transactions of purchase and sale of the state blocks of shares through stock exchange are perfromed according to general rules and provisions of stock exchange and depositary.
7. In case of sale of the state blocks of shares all conditions shown by the legislation of the Kyrgyz Republic to security transactions shall be complied.
8. The compulsory provision of participation of authorized body in implementation of the state blocks of shares through stock exchange is deposition of these shares into the custody account of the representative of authorized body in depositary opened according to internal regulations of depositary.
9. The first biddings by the state blocks of shares begin not earlier than in 30 (thirty) working days after the publication of the announcement of their sale.
10. Before the trading session on the stock exchange all line items, available to the biddings, on securities on the custody account of the representative of authorized body are transferred by depositary to trade system of stock exchange. At the same time securities on the custody account of the representative of authorized body are blocked before the end of trading session.
11. The bidder having intention to acquire the shares put up for sale shall in 2 working days before date of the biddings bring the guarantee fee in the amount of 10 percent from share value at the starting price. The guarantee fee is brought into the clearing sub-account of depositary open for the specified bidder, in clearing bank.
12. The representative of authorized body enters into trade system of the request for sale of the exposed blocks of shares of joint-stock companies. Requests for each block of shares shall contain security symbol, the number of shares and the desirable price for the share.
13. The broker offices wishing to acquire the exposed block of shares enter into trade system of the purchasing request of shares. Purchasing requests of shares shall contain security symbol, the number of shares and the price for the share.
14. Drawing of requests is made directly by bidders during the trading session.
15. Following the results of the biddings on each valid transaction the contract signed by the seller on behalf of the representative of authorized body on trading floor of stock exchange, by the buyer, on behalf of the trader of the participant of the exchange biddings, and stock exchange, on behalf of the administrator of stock exchange is drawn up. The contract serves as the official document confirming the conclusion of the transaction on trading floor of stock exchange.
16. Following the results of clearing of obligations on money the depositary makes the order to clearing bank about transfer of the corresponding money from bank accounts of buyers for the bank account of authorized body.
17. After receipt of confirmation from clearing bank about execution of the order about money transfer of buyers of the state blocks of shares into the account of authorized body the depositary makes transfer of the blocked securities from the custody account of the representative of authorized body into the custody account of buyers.
18. According to the Regulations on conditions and procedure for privatization of state-owned property in the Kyrgyz Republic approved by the order of the Government of the Kyrgyz Republic of March 26, 2003 No. 169, the sales charge in the amount of 7 percent over selling price (amount of transaction) of the state block of shares is levied from the buyer.
19. Settlement of authorized body with stock exchange and depositary is regulated according to applicable fares of stock exchange and depositary. The cost of services of stock exchange and depositary is paid by the buyer.
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
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