Article 59. Functions of the nominee holder. Prohibitions related to the exercise of the functions of a nominee holder of the Securities Market Act

Home / RLA / Article 59. Functions of the nominee holder. Prohibitions related to the exercise of the functions of a nominee holder of the Securities Market Act

 1. The functions of the nominee holder are:

1) accounting of the client's securities and ensuring their availability when making transactions with these securities;

2) registration of transactions with the client's securities;

3) confirmation of the client's securities rights;

4) representing the interests of the client when concluding transactions with securities transferred to nominal holding;

4-1) voting at general meetings of shareholders on behalf of clients without a power of attorney in accordance with written instructions received from these clients, including using information and communication technologies;

5) bringing to the client's attention information concerning securities transferred to nominal holding;

6) other functions in accordance with the nominal holding agreement that do not contradict the legislation of the Republic of Kazakhstan.

2. The nominal holder is prohibited from:

1) to register a securities transaction that does not comply with the requirements of the legislation of the Republic of Kazakhstan on the securities market;

1-1) make changes to the client's personal account (subaccount) that do not comply with the requirements of the legislation of the Republic of Kazakhstan;

2) to register a securities transaction without the client's order, except for the cases established by this Law and the regulatory legal act of the authorized body;

3) use the client's money and securities in their own interests or in the interests of third parties without the appropriate written permission of the client, except in cases established by the legislation of the Republic of Kazakhstan.

3. In the territory of the Republic of Kazakhstan, a nominee holder is not entitled to provide nominal holding services to another nominee holder in respect of securities transferred to him for nominal holding, except for:

1) the central depository;

2) custodians when they provide nominee holding services in respect of foreign securities or to foreign organizations performing the functions specified in paragraph 1 of this Article;

3) an organization that registers transactions with securities on the territory of the Astana International Financial Center.

4. A foreign accounting organization has the right to perform actions related to the exercise of rights under equity securities held in a personal account opened in the central securities depository's accounting system without a power of attorney in accordance with written instructions received from persons entitled to these equity securities.

Payment of dividends and remuneration on equity securities held in the personal account of a foreign accounting organization opened in the accounting system of the central securities depository is carried out to holders of these equity securities through a foreign accounting organization.

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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