Article 56-1. Restrictions on the disposal and use of insider information The Law on the Securities Market

     1. The Issuer's internal documents establish:

     1) list of information related to insider information;

     2) the procedure and terms of disclosure of insider information;

     3) internal control rules for delineating access rights to insider information and preventing the possibility of misuse of such information by insiders;

     4) the procedure for maintaining and keeping up-to-date the list of persons with access to insider information, as well as excluding them from the list;

     5) the procedure and time limits for notifying persons in cases of their inclusion (exclusion) from the list specified in subparagraph 4) of paragraph 5 of this Article, as well as informing persons in the case established by subparagraph 5) of paragraph 5 of this Article.;

     6) the procedure and deadlines for providing information to the issuer by the legal entities specified in subitems 2), 3), 4) and 7) of paragraph 3 of this Article about their employees who, by virtue of their official position and work obligations, have access to the issuer's insider information;

     7) other provisions allowing the issuer to exercise control over the disposal and use of insider information.

     The internal documents of the issuer specified in this paragraph (hereinafter referred to in this Article as the internal control rules) must be approved by the issuer's management body.

     2. Does not apply to insider information:

     1) information prepared on the basis of publicly available information, including research, forecasts and estimates regarding the value of a security (derivative financial instrument), the property status of the issuer, made for the purpose of making investment decisions and (or) preparing recommendations or proposals on transactions with securities (derivative financial instruments);

     2) information obtained from the mass media;

     3) unconfirmed information, the source of which is unknown, disseminated to a wide range of people, as well as assumptions about the issuer's current or planned activities.

     3. The following persons are recognized as insiders:

     1) employees of the issuer who have access to insider information by virtue of their official position and work obligations;

     2) persons who have access to insider information by virtue of owning, using and (or) disposing, directly or indirectly, of ten or more percent of the voting shares (stakes in the authorized capital) of the issuer;

     3) an audit organization, an appraiser, professional participants in the securities market and other persons providing services to the issuer in accordance with the concluded agreement (including an oral one), the terms of which provide for the disclosure of insider information.;

     4) the organizer of the auction, whose list includes securities (derivative financial instruments) issued (provided) by the issuer;

      5) members of the board of directors and the listing commission of the stock exchange, in whose trading system transactions with the issuer's securities and other financial instruments are concluded;  

     6) employees of the authorized body, the National Bank of the Republic of Kazakhstan and its departments, government employees who have access to insider information by virtue of their assigned functions and powers;

     7) public associations and professional organizations, whose members are the issuers and organizations specified in subitems 2), 3) and 4) of this paragraph, which, by virtue of their powers, have access to insider information.;

     8) employees of the organizations specified in subitems 2), 3), 4) and 7) of this paragraph who have access to insider information by virtue of their official position and work obligations;

     9) persons who have received insider information from the persons specified in subitems 1) – 8) of this paragraph.

     4. It is forbidden:

      1) use insider information when making transactions with securities and other financial instruments;

     2) transfer insider information to third parties or make it available to third parties, except in cases stipulated by the laws of the Republic of Kazakhstan;

     3) provide recommendations or suggestions to third parties on securities transactions based on insider information.

     5. The Issuer is obliged to ensure control over the disposal and use of insider information about the issuer and the securities (derivative financial instruments) issued (provided) by it, by carrying out the following measures, including, but not limited to::

     1) disclosure, in accordance with the procedure and under the conditions established by the regulatory legal act of the authorized body, of information related to its activities that is not publicly available, if this information, due to the consequences for the issuer's property and financial situation, is capable of influencing the value of securities (derivative financial instruments) issued (provided) by this issuer;

     2) development and approval of internal control rules, as well as control over compliance with the requirements of these rules by the issuer and its employees;

     3) creation of a structural unit or appointment of an official whose duties include monitoring compliance by the issuer and its officials and employees with the requirements of the legislation of the Republic of Kazakhstan and internal control rules;

     4) maintaining and keeping up-to-date the list of persons with access to the issuer's insider information specified in subitems 1), 2), 3) and 4) of paragraph 3 of this Article;

     5) notifying the persons included in the list specified in subparagraph 4) of this paragraph about their inclusion (exclusion) in the list (from the list), informing these persons about the requirements of this Law and the rules of internal control regarding the disposal and use of insider information;

     6) submitting a list of persons included in the list specified in subparagraph 4) of this paragraph to the authorized body upon its request;

     7) implementation of other measures stipulated by the rules of internal control.

     6. The legal entities specified in subitems 2), 3), 4) and 7) of paragraph 3 of this Article are obliged to:

     1) maintain a list of their employees who, by virtue of their official position and work obligations, have access to inside information of issuers for which these legal entities are recognized as insiders;

     2) inform their employees about the requirements of this Law regarding the prohibition of the use of insider information and internal control rules, in respect of which these legal entities are recognized as insiders.;

     3) inform issuers, in respect of which these legal entities are recognized as insiders, about their employees who, by virtue of their official position and work duties, have access to the issuers' insider information, in accordance with the procedure and terms established by the internal control rules.

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

    This Law regulates public relations arising in the process of issuance, placement, circulation and repayment of equity securities and other financial instruments, the specifics of the creation and operation of securities market entities, defines the procedure for regulation, control and supervision of the securities market in order to ensure the safe, open and effective functioning of the securities market, protection of investors' rights. and holders of securities, fair competition of securities market participants.

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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