Article 45. Securities market infrastructure The Law on the Securities Market

Home / RLA / Article 45. Securities market infrastructure The Law on the Securities Market

1. The following types of activities are carried out on the securities market, which are subject to licensing by an authorized body:

1) brokerage;

1-1) dealership;

2) excluded by the Law of the Republic of Kazakhstan dated December 28, 2011 No. 524-IV (effective from 01.01.2013);

3) Investment portfolio management;

4) excluded by the Law of the Republic of Kazakhstan dated 06/21/2013 No. 106-V (for the procedure of entry into force, see paragraphs 1) paragraph 1 of art. 2);

5) Custodial;

6) transfer agency;

6-1) clearing activities on transactions with financial instruments;

7) (deleted - No. 72 dated 08.07.2005)

8) organization of trading in securities and other financial instruments.

2. Activities specified in the sub-items 1), 1-1), 2), 3), 4), 5), 6), 6-1), 7) and 8) of paragraph 1 of this Article, as well as depository activities, activities related to the maintenance of a system of registers of securities holders and the activities of a single operator for the implementation of nominal holding securities owned by the state, quasi-public sector entities, the list of which is approved by the authorized body for state property management (hereinafter – entities of the quasi-public sector), or in respect of which the state, entities of the quasi-public sector have property rights, are professional activities in the securities market.

A single operator carries out nominal holding of securities owned by the state, quasi-public sector entities or in respect of which the state, quasi-public sector entities have property rights, without a license from an authorized body.

2-1. The Central Securities Depository carries out the following types of professional activities in the securities market without a license from an authorized body:

1) depository activities;

2) activities related to the maintenance of a system of registers of securities holders;

3) activities related to the organization of trading in securities and other financial instruments;

4) clearing activities for transactions with financial instruments.

The Central Securities Depository is the only organization in the territory of the Republic of Kazakhstan that carries out depository activities and maintains a system of registers of securities holders.

2-2. The specifics of the brokerage and (or) dealer activities carried out by a clearing organization are established by a regulatory legal act of the authorized body.

3. Organizations carrying out the same type or combining types of professional activities in the securities market, in order to coordinate their activities, create a professional organization.

4. The procedure for carrying out activities on the securities market is established by this Law, regulatory legal acts of the authorized body, internal documents of professional organizations and licensees.

The conditions and procedure for combining types of professional activities in the securities market are established by a regulatory legal act of the authorized body.

4-1. The Licensee has the right to carry out activities on the securities market only if there are internal documents establishing:

conditions and procedure for carrying out activities on the securities market;

general terms of operations;

the rights and obligations of the licensee and his client, and their responsibilities.

The internal documents provided for in this paragraph must be approved by the licensee's management body.

5. Financial instruments of clients of a professional participant in the securities market, as well as clearing participants and members of the stock exchange, are accounted for by a professional participant in the securities market separately from their own assets and are not included in the estate in the event of bankruptcy and/or the composition of their assets upon liquidation.

6. The terms and procedure for payment of remuneration by the client to the licensee for the provision of services on the securities market are established by the internal documents of the licensee and (or) the agreement concluded by the licensee with his client.

7. (deleted - No. 72 dated 08.07.2005).

8. The joint–stock company to which the gold and foreign exchange assets of the National Bank of the Republic of Kazakhstan and (or) assets of the National Fund of the Republic of Kazakhstan (hereinafter referred to in this article as assets) have been transferred into trust management carries out brokerage and (or) dealer activities and (or) investment portfolio management activities without a license.

9. The requirements of this Law and the regulatory legal acts of the authorized body regarding the procedure and conditions for carrying out brokerage and (or) dealer activities and (or) investment portfolio management activities do not apply to the joint-stock company specified in paragraph 8 of this article when carrying out the above-mentioned types of professional activities in the securities market in relation to assets.

Brokerage and (or) dealer activities with respect to assets and asset trust management activities are carried out by the joint-stock company specified in paragraph 8 of this article, in accordance with the internal documents of this joint-stock company and investment declarations on asset trust management.

10. In case of conclusion of contracts for the provision of brokerage services and (or) investment portfolio management with clients other than the National Bank of the Republic of Kazakhstan and the National Fund of the Republic of Kazakhstan, the joint-stock company specified in paragraph 8 of this Article carries out professional activities in the securities market in accordance with the requirements of this Law and regulatory legal acts of the authorized body.

11. The single operator, in the course of carrying out its activities, complies with the requirements established by Articles 47-1, 49-1, 53 and 53-1 of this Law.

The requirements of Article 54 of this Law apply to the senior staff of a single operator.

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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