Article 80. The procedure for carrying out the activities of the central depository The Law on the Securities Market

Home / Laws / Article 80. The procedure for carrying out the activities of the central depository The Law on the Securities Market

1. The Central Depository in the process of performing depository activities:

1) provides depositors with nominal holding services for financial instruments;

2) performs settlements in financial instruments for transactions concluded on the organized securities market and for transactions concluded on the unorganized securities market with the participation of its depositors, as well as other clients;

2-1) provides financial organizations that are residents of the Republic of Kazakhstan and (or) depositors who are foreign depositories, custodians and (or) nominee holders of financial instruments, on the basis of an agreement, with a service for proper verification of their clients who are residents of the Republic of Kazakhstan for the purposes of countering the legalization (laundering) of proceeds from crime, terrorist financing and proliferation financing. weapons of mass destruction;

3) performs depository services for government-issued securities in accordance with the legislation of the Republic of Kazakhstan and its own set of rules;

3-1) returns assets held nominally to the client of a nominee holder who has been deprived of a license to conduct all or certain types of activities on the securities market and has failed to fulfill obligations to return assets to his client, as well as performs other operations with respect to such client's assets in accordance with the procedure established by a regulatory legal act of the authorized body and a set of rules of the Central Depository;

3-2) stores securities and other financial instruments issued in documentary form;

4) provides other types of services in accordance with the legislation of the Republic of Kazakhstan.

2. The Central Securities Depository, if it has a license to carry out certain types of banking operations, has the right, in accordance with the procedure established by a regulatory legal act of the authorized body, to carry out:

1) opening and maintaining bank accounts of legal entities;

2) opening and maintaining bank accounts of individuals;

3) opening and maintaining correspondent accounts of banks and organizations engaged in certain types of banking operations;

4) transfer operations: execution of orders from individuals and legal entities for payments and money transfers;

5) exchange operations with foreign currency, except for exchange operations with foreign currency in cash;

6) Excluded by the Law of the Republic of Kazakhstan dated 07/12/2022 No. 138-VII (effective sixty calendar days after the date of its first official publication).

If the central securities depository has a license from the authorized body to carry out the activities specified in subparagraph 4) of this paragraph, the central securities depository has the right to perform the functions of a payment agent when redeeming financial instruments and (or) paying income on them.

3. The Central Securities Depository carries out clearing activities for transactions in financial instruments or provides services to clearing organizations and (or) central counterparties of an organized and (or) unorganized securities market on the terms and in accordance with the procedure established by a regulatory legal act of the authorized body and a set of rules of the central securities depository.

4. The Central Securities Depository, in the process of carrying out activities related to the maintenance of the system of registers of holders of securities and digital financial assets, carries out:

1) formation, maintenance and storage of a system of registers of holders of securities and digital financial assets;

2) opening of a personal account in the system of registers of securities holders to a registered person;

3) registration of transactions with securities on the registered person's personal account;

4) reflection of transactions with digital financial assets in cases established by the legislation of the Republic of Kazakhstan;

5) confirmation of the rights to securities and digital financial assets of the registered person;

6) keeping the system of registers of securities holders and digital financial assets up to date;

7) control over the compliance of the number of securities in circulation on the secondary securities market with the number registered by the authorized body;

8) informing the holders of securities on the list of issues defined by the set of rules of the central securities depository;

9) providing the issuer with information constituting the system of registers of holders of securities and digital financial assets, based on its request;

10) providing information to government agencies that have the right, in accordance with the legislative acts of the Republic of Kazakhstan, to obtain information constituting the system of registers of holders of securities and digital financial assets, in accordance with Article 43 of this Law;

11) other functions in accordance with the laws of the Republic of Kazakhstan.

4-1. The Central Securities Depository carries out activities related to the accounting and storage of digital assets, including those included in the National Strategic Crypto Reserve, as well as other functions in accordance with the Law of the Republic of Kazakhstan "On Digital Assets in the Republic of Kazakhstan" and the regulatory legal act of the National Bank of the Republic of Kazakhstan, as well as the central Securities Depository's set of rules.

5. The procedure for carrying out activities related to the maintenance of the system of registers of securities holders is established by a regulatory legal act of the authorized body and a set of rules of the central securities depository.

5-1. The procedure for carrying out activities related to the formation, maintenance and storage of a system of registers of holders of digital financial assets is established by a regulatory legal act of the authorized body and a set of rules of the central securities depository.

6. The issuer of non-state equity securities is obliged to conclude an agreement with the central securities depository to maintain a system of registers of securities holders.

6-1. The issuer of a digital financial asset, the operator of the digital financial asset platform and the operator of the digital asset trading platform are required to conclude an agreement with the central securities depository to maintain a system of registers of holders of digital financial assets, except in cases where the central securities depository acts as the operator of the digital financial asset platform and (or) the operator of the digital asset trading platform.

7. As part of the organization of trading in securities and other financial instruments, the central securities depository performs the following functions::

1) operation and maintenance of the integrated information system of the over-the-counter securities market;

2) providing its clients with access to the integrated information system of the over-the-counter securities market;

3) organization of the exchange of quotations of securities and other financial instruments between clients of the central securities depository for concluding transactions with securities and other financial instruments on the unorganized securities market;

4) organization of the exchange of messages on the conclusion of transactions with securities and other financial instruments between the clients of the central depository;

5) other functions provided for by this Law.

8. The Central Securities Depository, in accordance with the procedure established by the regulatory legal act of the authorized body and the set of rules of the central securities depository, forms and maintains a system of registers of transactions with derivative financial instruments concluded on organized and unorganized securities markets.

8-1. The Central Securities Depository has the right to develop and further improve its own software products used to carry out its activities.

9. The Central Securities Depository is not entitled to carry out business activities that are not related to activities in the financial market, except in the following cases:

1) disposal of one's own property, including the rental (lease) of property acquired for one's own needs;

2) providing consulting and information services on issues related to activities on the securities market, as well as countering the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;

3) the implementation of special literature on activities in the securities market on any type of media;

4) organization of training in the field of activity in the securities market;

5) publication on the Internet resource of the central securities depository of advertisements about the services provided by the central securities depository and its clients, as well as other information defined by the set of rules of the central securities depository;

6) the leasing of material and technical facilities and equipment of the central depository.

9-1. The Central Securities Depository has the right to receive information from the information systems of state bodies, as well as the system of a credit bureau with state participation, necessary for the purpose of confirming the information used in carrying out the activities specified in this article.;

10. The conditions and procedure for carrying out the activities of the central depository are determined by this Law, regulatory legal acts of the authorized body and the set of rules of the central depository.

11. The Central Securities Depository provides information about the issuer and its securities, digital financial assets to investors in accordance with the procedure and on the terms established by the regulatory legal acts of the authorized body and 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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