of December 29, 2000 No. 502
About the Procedure of broker and dealer activities in the security market
According to articles 38 and 39 of the Law of the Republic of Tajikistan "About the security market" for the purpose of execution of the Presidential decree of the Republic of Tajikistan of December 1, 1999 No. 3 "About measures for further development and increase in efficiency of economic reforms" for the purpose of development in the Republic of Tajikistan of the Government of the Republic of Tajikistan security market decides:
Approve the Procedure of broker and dealer activities in the security market it (is applied).
Prime Minister of the Republic of Tajikistan
Approved by the Order of the Government of the Republic of Tajikistan of December 29, 2000 No. 502
1. This Procedure determines the conditions and procedure for the relation arising in the course of implementation of security transactions between the broker dealer and his client which are regulated by this Procedure, and also the current legislation of the Republic of Tajikistan, both prisoners between broker dealers and their clients of contracts for broker servicing.
2. Implementation by broker dealers of the activities are established by the rules determined by authorized state body before education of the special representative of body.
Control of implementation of broker and dealer activities is performed by the representative state organomit the self-regulatory organization, or the organizer of the biddings authorized by it.
4. Specialists of the broker dealer have the right to perform transactions with securities of clients and their accounting in the presence of the certificates of competency granted by authorized state body.
5. Basic concepts
In this Procedure the following concepts are used:
The underwriter - the person having the license for implementation of broker and dealer activities and performing underwriting activities for certain remuneration or discount.
Underwriting activities - purposeful activities of broker dealers for securities placement of new releases based on the contract with the issuer.
The underwriting agreement - the agreement signed between the issuer and the managing underwriter, determining conditions and procedure for securities placement.
The broker dealer - the legal entity who is performing broker and dealer activities in the security market and having the corresponding license of authorized state body.
The contract for broker servicing - the service agreement between the broker dealer and his client.
The paragraph of the sixth is excluded.
The client order - the document transferred by the client to the broker dealer for implementation of transaction with securities.
The client order (request) - the document transferred by the client to the broker or the dealer for transactions with securities.
Commission income - the monetary reward of the broker dealer established by the contract for broker servicing.
Conflict of interest - the situation arising in the course of implementation of security transaction in case of which the contradiction of interests of the broker dealer and his client takes place.
Personal account - set of the interconnected records and documents by means of which accounting of securities and identification of the client is performed.
The trader - the qualified specialist of the broker dealer who is directly performing security transactions from his name or for and on behalf of the client.
The managing underwriter - the underwriter responsible for the organization of issued consolidation, preparation of issue and the conclusion of the contract between the issuer and issued syndicate, securities placement by issued syndicate.
Issued associations - temporarily created group of underwriters for the purpose of reduction of risks and promoting primary securities placement.
The issued contract - the contract between underwriters based on which issued consolidation is created.
6. Functions of the broker dealer:
a) performs preparation and provides information and recommendations necessary for adoption of investment decisions by his clients;
b) makes security transactions at own expense both for customer account on its own behalf and on behalf of the client and documentary draws up security transactions of clients;
c) renders consulting and information services under the agreement with the client.
7. Obligations of the broker dealer:
a) find out the purpose and tasks of investment by the client of money into securities and to perform the activities according to these purposes;
b) be effective within the powers conferred to it by terms of the contract with the client;
c) perform client orders and client orders on conditions and the prices, profitable to clients;
d) according to the procedure, established by the contract for broker servicing to send to the client of confirmation about the conclusion of each transaction and obligation fulfillment on her;
e) not accept the client orders and orders for transactions with securities of the client which are not guaranteeing payment of transactions.
8. According to the contract for broker servicing the broker dealer shall:
- inform clients on the facts of emergence of conflict of interest of the broker dealer with interests of clients, and also availability and the reasons of deterioration in its financial condition or imposing of sanctions by authorized bodies within three days after their origin. The specified notifications are made by the broker dealer according to the procedure, established by the contract for broker servicing. Deterioration in financial condition is understood as discrepancy of standard rates of financial stability of the broker dealer to requirements of authorized state body.
The broker dealer in the activities:
a) has no right to conclude security transactions if the conclusion of the specified transactions contradicts interests of his clients;
b) does not bear liability for damages, caused to the client in case of change of market prices of securities owing to contingencies;
c) bears property responsibility for the loss of property suffered by the client as a result of wrongful or unqualified acts of the broker dealer;
d) shall keep confidentiality of the financial and other customer information obtained in the course of implementation of professional activity in the security market, except as specified, provided by both the legislation of the Republic of Tajikistan and authorized state body.
9. The broker dealer performs storage of information on the activities, about clients and security transactions at least five years.
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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