ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of August 23, 2016 No. 372

About the Procedure of activities of the central depositary

According to article 43 of the Law of the Republic of Tajikistan "About the security market" and article 51 of the Law of the Republic of Tajikistan "About regulatory legal acts" the Government of the Republic of Tajikistan decides:

1. Approve the Procedure of activities of the central depositary it (is applied).

2. To the Ministry of Finance of the Republic of Tajikistan to bring the regulatory legal acts into accord with this resolution.

3. Declare invalid the order of the Government of the Republic of Tajikistan of December 29, 2000, No. 501 "About approval of the Regulations on the Central depositary".

Approved by the Order of the Government of the Republic of Tajikistan of August 23, 2016, No. 372

Procedure of activities of the central depositary

1. General provisions

1. This Procedure establishes features of legal status and activities of the central depositary (further - depositary), procedure for assignment to it the status of the central depositary, and also feature of supervision of activities of depositary.

2. In this Procedure the following basic concepts are used:

- depositary - the professional participant of the security market which formation and activities is established by this Procedure;

- the depositor - person using services of depositary in storage of securities, certificates of securities and/or accounting of the rights to securities. The term "depositor" is used also for specifying of the issuer or the clearing organization which opens the custody account or the account of the corresponding type if there is no need to note features of servicing of specified persons;

- the agreement - the agreement of the custody account (the depositary agreement) signed by depositary with the depositor and governing their relations in the course of depository activity; the custody account - the set of signing up in depositaries intended for accounting of securities;

- authorized state body on regulation of the security market - the state body exercising regulation and supervision of the security market.

2. Procedure for formation of depositary

3. Professional participants of the security market and other legal entities as founders, can create depositary according to the legislation of the Republic of Tajikistan.

4. The depositary is formed in the form of joint-stock company in compliance by the legislation of the Republic of Tajikistan.

5. The depositary performs the activities after receipt of the license for conducting the depository activity granted by authorized state body on regulation of the security market (further - authorized state body)

6. The procedure and conditions of licensing of depositary is established by the legislation of the Republic of Tajikistan.

7. The income of depositary is used for compensation of the costs connected with implementation of the functions by it and for technical and social development of depositary.

8. Means of depositary are created for the account:

- sales of own securities of depositary;

- loans;

- sales charges for the services provided by depositary;

- the means received for rendering information, consulting and other services.

9. The governing body of depositary, its function and power, procedure for forming and adoption of decisions by it are determined according to the legislation of the Republic of Tajikistan and the Charter of depositary.

3. Transfer - agents of depositary

10. Transfer agents of depositary the functions created for the purpose of implementation on acceptance, registration and transfers of orders of depositors on implementation of transactions with securities to depositary and transfer of other information are branches of depositary.

11. Education and registration transfer agents is made according to the procedure, stipulated by the legislation the Republic of Tajikistan.

12. Transfer - agents perform the following functions: acceptance, registration, execution and transfer of orders to depositary, as to will the expressing document of depositors to depositary; transfer of confirmation of execution of transactions by depositary to the depositor; information transfer from the issuer to the depositor.

13. Relations of depositary about transfer agents are determined by the legislation of the Republic of Tajikistan and the Charter of depositary.

4. Activities of the central depositary

14. For the purpose of accounting of the rights, the depositary opens for registration of transactions and confirmation of the rights on issued securities and other financial instruments of the depositors (their clients) personal accounts (sub-accounts) of depositors (their clients) and records all transactions on personal accounts (sub-accounts) with indication of dates, time and the bases for their carrying out.

15. For providing the depositary ensures safety of financial instruments of depositors (their clients) storage of financial instruments separately from the financial instruments belonging to the depositary.

16. The financial instruments transferred to nominal continence to depositary are not considered on balance of depositary and stored on off-balance accounts.

17. The depositary provides necessary conditions for safety of the financial instruments issued in documentary and paperless forms and records about the rights of depositors on them (their clients), including by use of systems of duplication of the specified information and safe storage system of records.

18. The depositary performs storage of documentary and paperless financial instruments according to the procedure, established by the legislation of the Republic of Tajikistan.

19. For the purpose of accomplishment of functions of the payment agent on transactions with the financial instruments which are in nominal continence and also on payment of the income for securities and in case of their repayment, the depositary at the same time opens for depositors (their clients) personal accounts (sub-accounts) in system of accounting of nominal continence and current accounts.

20. Accounting of money of the depositor and its clients is conducted by depositary separately, by opening of two current accounts.

21. Money of depositors and their clients on the current accounts opened in depositary is considered on out of balance sheet accounts, and on them collection according to obligations of depositary cannot be turned.

22. Calculations for money in case of transactions with financial instruments are perfromed by depositary or credit institution at the request of depositary.

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