Article 1. The basic concepts used in this Law Chapter 1. General provisions The Law on Investment and Venture Funds

Home / RLA / Article 1. The basic concepts used in this Law Chapter 1. General provisions The Law on Investment and Venture Funds

The following basic concepts are used in this Law:

1) joint-stock investment fund - a joint-stock company whose exclusive activity is the accumulation and investment, in accordance with the requirements established by this Law and its investment declaration, of money contributed by the shareholders of this company to pay for its shares, other assets accepted as a result of the transformation of a legal entity into a joint-stock investment fund, as well as assets received as a result of this investment;

2) diversification - the placement of investment fund assets in various financial instruments and other property in order to reduce the risk of reducing their value;

3) a management company is a professional participant in the securities market engaged in investment portfolio management activities on the basis of a license issued by an authorized body.;

3-1) a venture fund is a simple partnership or a legal entity in the form of a joint–stock company or a business partnership that attracts and accumulates money and other property solely for the purpose of venture financing;

4) real estate fund - a joint-stock investment fund, the exclusive type of activity of which is the accumulation and investment, in accordance with the requirements established by this Law and its investment declaration, of money contributed by the shareholders of this company to pay for its shares, other assets accepted as a result of the transformation of a legal entity into a real estate fund, as well as assets received in as a result of such investment in real estate and other property permitted by this Law;

5) investment declaration - a document defining the list of investment objects, goals, strategies, conditions and restrictions of investment activity in relation to the assets of an investment fund, the conditions for hedging and diversifying the assets of the fund;

6) investment income - an increase in the assets of an investment fund in monetary terms, obtained as a result of their investment;

7) investment fund - a joint-stock or mutual investment fund established in accordance with this Law;

8) investment fund assets - a set of assets owned by a joint-stock investment fund or forming a mutual investment fund;

9) the net asset value of an investment fund is the monetary expression of the asset value of an investment fund, defined as the difference between the value of all assets of the investment fund and its liabilities or accrued expenses payable from the assets of the investment fund.;

10) mutual investment fund - a set of money received to pay for shares, as well as other assets acquired as a result of their investment, owned by the holders of shares and managed by the management company.;

11) rules of a mutual investment fund - a document that defines the goals, conditions, procedure for the functioning and termination of the existence of a mutual investment fund;

12) investment decision - a decision on making a transaction with the assets of an investment fund, made in the process of managing its assets;

12-1) market maker – an organization providing services for the announcement and maintenance of quotations on a financial instrument in accordance with the internal documents of the stock exchange;

13) a share is a registered equity security of an undocumented form of issue confirming its owner's share in a mutual investment fund, the right to receive money received from the sale of assets of the mutual investment fund and (or) other property in the case established by this Law upon termination of its existence, as well as other rights related to the specifics of its activities mutual investment funds defined by this Law;

14) share holder - a person who has a personal account in the register system of holders of shares of a mutual investment fund or the system of accounting for nominal holding and has rights to shares of a mutual investment fund;

15) repurchase of a share – withdrawal of a share from circulation by means of payment by the management company to the holder of the share of its value, determined in accordance with this Law and the rules of the mutual investment fund;

16) the estimated value of a unit is the monetary expression of the unit's value, determined by dividing the value of the net assets of a unit investment fund by the number of its units in circulation.;

17) the nominal value of a unit is the monetary expression of the unit's value at the initial placement of units of a mutual investment fund;

18) initial placement of shares - the period of placement of shares at face value in order to form the minimum amount of assets of a mutual investment fund;

19) trust management agreement - an agreement for the management of an investment portfolio comprising the assets of an investment fund, concluded by a management company with a joint-stock investment fund or with an investor in a mutual investment fund on the transfer of money to trust management in accordance with the requirements established by this Law;

20) authorized body - a state body that carries out state regulation, control and supervision of the financial market and financial organizations.

The Law of the Republic of Kazakhstan dated July 7, 2004 No. 576.

This Law defines the legal status, specifics of the creation, operation, reorganization and liquidation of a joint-stock investment fund, the conditions and procedure for the creation, operation and termination of a mutual investment fund, the specifics of the legal status and activities of venture funds in the Republic of Kazakhstan, regulates relations related to the activities of professional securities market participants to ensure the functioning of investment funds, and It also defines the procedure for state regulation of investment funds.

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Republic of Kazakhstan

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