Commentary to article 203. Entry of deliberately false information in the register of securities holders of the Criminal Code of the Republic of Kazakhstan and the Criminal Code of the Republic of Kazakhstan

     1. The entry of deliberately false information into the register of securities holders, which resulted in the transfer of rights to these securities to another person, —      

is punishable by a fine in the amount of three hundred to five hundred monthly calculation indices or in the amount of the convicted person's salary or other income for a period of three to five months, or correctional labor for up to one year, or deprivation of the right to hold certain positions or engage in certain activities for up to three years, or arrest for up to four months.      

2. The same act that caused major damage, —      

is punishable by a fine in the amount of five hundred to one thousand monthly calculation indices or in the amount of the convicted person's salary or other income for a period of five to ten months, or correctional labor for a period of one to two years, or deprivation of the right to hold certain positions or engage in certain activities for a period of up to five years, or arrest for for a term of up to six months, or by imprisonment for a term of up to two years with deprivation of the right to hold certain positions or engage in certain activities for a term of up to three years.

     The public danger of entering deliberately false information into the register of securities holders is expressed in the fact that as a result of its commission, significant damage is caused to the economy of our state.      

The object of the crime in question is the social relations that develop in the field of the securities market in the course of such professional activities as maintaining a register of securities holders.      The subject of the crime is the register of securities holders, which is an official list of holders of the issuer's securities, compiled on a certain date and allowing identification of these holders, as well as the type, nominal value and number of securities owned by them.      

According to the Civil Code of the Republic of Kazakhstan, a security is a document certifying, in compliance with the prescribed form and mandatory requisites, property rights, the exercise or transfer of which is possible only upon presentation. In civil law, there are several types of securities. First of all, documentary and non-documentary securities are highlighted. Bearer securities, registered and warrant securities are distinguished among the documentary ones. In non—documentary cases, the rights secured by a security are fixed on magnetic media using electronic computing equipment.      

The conditions and procedure for maintaining the State Register of Equity Securities are established by regulatory legal acts of the authorized body ("Regulations on Maintaining the Register of Holders of Securities in the Republic of Kazakhstan", approved by Government Resolution No. 944 dated July 29, 1996). The Regulation establishes the legal basis for the establishment and operation, the status of registrars in the securities market, regulates the mechanism of registration of rights related to securities, and also defines the procedure for maintaining the register.      

Maintaining a register of securities holders is the activity of collecting, recording, processing, storing and providing data that makes it possible to identify the owner of a security on a certain date.      

Equity securities whose issue has been cancelled or information about which has not been entered into the State Register of Equity Securities may not be the subject of transactions on the securities market. Information on equity securities and their issuers registered and admitted to circulation in the territory of the Republic of Kazakhstan is entered by the authorized body into the State Register of Equity Securities within one day from the date of the relevant decision by the authorized body (Article 6 of Chapter 2 of the Law of the Republic of Kazakhstan "On the Securities Market").      

Holders of securities are their owners and nominee holders. The latter are professional participants in the securities market who, in accordance with the agreement and in the interests of the owners of securities, carry out transactions with securities on their own behalf or at the expense of this owner (broker-dealers).      

The objective side of the crime is expressed in the entry of deliberately false information into the register of securities holders, which led to the transfer of rights to these securities to another person.     

The entry of deliberately false information into the register of securities holders is characterized by the implementation of any amendments that do not correspond to reality, as a result of which these securities are transferred to another person.     

The crime is considered completed from the moment the rights to these securities are transferred to another person, as a result of the commission of the noted illegal action.      

The subject of the crime may be heads of organizations performing the duties of a registrar or officials of banking institutions who have the opportunity to work with the named registry.      

On the subjective side, the analyzed crime is characterized by the presence of only direct intent. The person is aware that he/she is deliberately entering false information into the register of securities holders, i.e. distorted or even incorrect information, and wishes to do so.      

The legislator attributed the commission of the same actions that caused major damage to the qualifying feature of Part 2 of Article 203 of the Criminal Code of the Republic of Kazakhstan. According to the note to Article 189 of the Criminal Code of the Republic of Kazakhstan, major damage is damage caused to a citizen in the amount of one hundred times the monthly calculation index, or damage caused to an organization or the state in the amount of five hundred times the monthly calculation index established by the legislation of the Republic of Kazakhstan at the time of the commission of the crime.

Commentary from 2007 to the Criminal Code of the Republic of Kazakhstan from the Honored Worker of Kazakhstan, Doctor of Law, Professor, Academician of the Kazakhstan National Academy of Natural Sciences BORCHASHVILI I.Sh.                  

Date of amendment of the act:  08/02/2007 Date of adoption of the act:  08/02/2007 Place of acceptance:  NO Authority that adopted the act: 180000000000 Region of operation:  100000000000 NPA registration number assigned by the regulatory body:  167 Status of the act:  new Sphere of legal relations:  028000000000 Report form:  COMM Legal force:  1900 Language of the Act:  rus

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