Article 37. Registration of the pledge of rights on equity securities The Law on the Securities Market

Home / RLA / Article 37. Registration of the pledge of rights on equity securities The Law on the Securities Market

1. The procedure for registering a pledge of rights under equity securities is established by this Law, a regulatory legal act of the authorized body and a set of rules of the central securities depository.

2. Registration of the pledge of rights under equity securities is carried out by the central depository (nominee holder) on the basis of orders of the pledgor and the pledgee, with the exception of the cases established by paragraphs 3 and 4 of this Article.

It is allowed to transfer the orders of the pledgor and the pledgee in relation to transactions related to the encumbrance of equity securities through the unified register of collateral for movable property.

The procedure for executing orders of the pledgor and the pledgee in relation to transactions related to the encumbrance of equity securities through the unified register of collateral for movable property is determined by the legislation of the Republic of Kazakhstan and the set of rules of the central securities depository.

3. When carrying out the operation provided for in subparagraph 11) of paragraph 2 of Article 5-1, Articles 61-2, 61-4, 61-11 and 61-12 of the Law of the Republic of Kazakhstan "On Banks and Banking activities in the Republic of Kazakhstan", registration of the pledge of rights on equity securities is carried out without removing encumbrances on the basis of the order of the pledgee, containing all the necessary information for registration of this transaction, with an indication of the rights to equity securities transferred as collateral.

4. When making settlements between the depositor and his client, the registration of the pledge of securities pledged to the depositor and secured by a margin transaction and the transfer of ownership of these securities is carried out on the basis of an order from the pledgee and a brokerage services agreement containing the terms of margin transactions.

5. If the depositor is deprived of the license or the depositor decides to voluntarily return the license to carry out brokerage and (or) dealer activities with the right to maintain customer accounts as a nominee holder, the central securities depository transfers the securities belonging to the depositor's client, which are burdened, to the account of this client in the system of registers of securities holders without removing the encumbrance. in accordance with the procedure stipulated by the Central Securities depository's set of rules.

The Law of the Republic of Kazakhstan dated July 2, 2003 No. 461.

 This Law regulates public relations arising in the process of issuing, placing, circulating and redeeming equity securities and other financial instruments, the specifics of the creation and operation of securities market entities, defines the procedure for regulating, controlling and supervising the securities market in order to ensure the safe, open and effective functioning of the securities market, and the protection of investors' rights. and holders of securities, fair competition of securities market participants.

President

Republic of Kazakhstan

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