Article 72-3. Coercive supervisory response measures The Law on the Securities Market

Home / Laws / Article 72-3. Coercive supervisory response measures The Law on the Securities Market

1. The authorized body applies compulsory supervisory response measures to persons who have the characteristics of a major participant in the investment portfolio manager, as well as major participants in the investment portfolio manager in the following cases::

1) provided for in paragraph 5 of Article 49, paragraph 6 of Article 55-1, paragraph 3 of Article 72-1 of this Law;

2) if the application of other supervisory response measures cannot ensure the protection of the legitimate interests of the investment portfolio manager's clients and minimize the risks associated with the investment portfolio management activities;

3) if the actions (inaction) of the investment portfolio manager and (or) a major participant in the investment portfolio manager may lead to a further deterioration in the financial position of the investment portfolio manager.

2. In the presence of the cases provided for in paragraph 1 of this Article, the authorized body has the right to require from:

1) a person who has the characteristics of a major participant, as well as from a major participant managing an investment portfolio, reducing the share of their direct or indirect ownership to below ten percent of the voting shares of the investment portfolio manager;

2) the investment portfolio manager should suspend operations (direct and indirect) between them in relation to a major participant, exposing the investment portfolio manager to risk;

3) the investment portfolio manager, a major participant in the investment portfolio manager, taking measures for additional capitalization of the investment portfolio manager.

3. If a major participant or a person with the characteristics of a major participant managing an investment portfolio fails to comply with the requirements provided for in paragraph 2 of this article, a trust management of shares of the investment portfolio manager belonging to a major participant or a person with the characteristics of a major participant managing an investment portfolio is established on the basis of a decision of the authorized body. These shares are transferred to the trust management of the authorized body for a period of up to three months.

The authorized body has the right to make a decision on the transfer of shares of the investment portfolio manager owned by a major participant or a person with the characteristics of a major participant in the investment portfolio manager to the trust management of the national managing holding.

In the case of transfer of shares of the investment portfolio manager owned by a major participant or a person with the characteristics of a major participant in the investment portfolio manager to the trust management of the national managing holding, the period for which the trust management of shares is established is determined in the relevant decision of the authorized body on the establishment of trust management.

During the period of trust management of shares of the investment portfolio manager by the authorized body or the national managing holding, the owner of shares is not entitled to perform any actions with respect to shares held in trust.

A major participant or a person who has the characteristics of a major participant in an investment portfolio manager has the right to petition the authorized body for the sale of all shares of the investment portfolio manager owned by him to the persons indicated in the petition.

The petition is satisfied by the authorized body if the purchasers of the shares specified in the petition comply with the requirements of the legislative acts of the Republic of Kazakhstan.

If the grounds for transferring the shares of the investment portfolio manager to trust management are not eliminated before the expiration of the period for which the trust management was established, the authorized body or the national managing holding company shall alienate the shares held in trust by selling them on the organized securities market at the market value prevailing on the date of the decision on the sale of shares.

In the absence of information on the market value of the shares, the selling price of the shares may be determined by the appraiser in accordance with the legislation of the Republic of Kazakhstan. The proceeds from the sale of these shares are transferred to the persons whose shares were transferred to the trust management.

The sale of shares of the investment portfolio manager owned by a major participant or a person who has the characteristics of a major participant in the investment portfolio manager is carried out at the expense of the investment portfolio manager.

4. The procedure for the trust management of shares of the investment portfolio manager owned by a major participant or a person with the characteristics of a major participant in the investment portfolio manager, as well as the actions of the authorized body or the national managing holding during the trust management period, is established by a regulatory legal act of the authorized body.

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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