LAW OF THE REPUBLIC OF KAZAKHSTAN ON INVESTMENT FUNDS IN THE REPUBLIC OF KAZAKHSTAN (As amended by: The RK Law On Introduction of Amendments and Changes in Certain Legislative Acts of the Republic of Kazakhstan Concerning Banking Activities, dated July 11, 1997, № 154-1; The RK Law On Introduction of Amendments and Changes in Certain Legislative Acts of the Republic of Kazakhstan Concerning JointStock Companies, dated July 10, 1998, № 282-1)

ON INVESTMENT FUNDS IN THE REPUBLIC OF KAZAKHSTAN
Law of the Republic of Kazakhstan the 6tx of March, 1997 № 82-1
(As amended by : The RK Law On Introduction of Amendments and Changes in
Certain Legislative Acts of the Republic of Kazakhstan Concerning Banking
Activities, dated July 11, 1997, № 154-1; The RK Law On Introduction of
Amendments and Changes in Certain Legislative Acts of the Republic of
Kazakhstan Concerning JointStock Companies, dated July 10, 1998, № 282-1)

This law shall define the legal status of investment funds in the RK, set forth the specifics of their establishment, and govern their activities.

Investment funds shall be created and shall function for the purpose of protecting rights of investors on the securities market (SM) and lowering the investment risks by attracting funds and their further diversified investing in securities.

Note: Amended by the RK Law № 154-1, dated July 11, 97

SECTION I. GENERAL CLAUSES

Article 1. The notion of an Investment Fund

1. An investment fund (IF) shall be defined as a legal entity formed as an open-end joint-stock company and engaged in raising funds by means of issuing and publicly placing its own securities for the purpose of subsequently making diversified investment of the funds raised into securities.

2. The activity indicated in item 1 of this Article shall be exclusive for IFs. The activity of any legal entities coinciding contentand goal-wise with that indicated in item 1 must be regulated by this Law.

An open JSC which is not registered as an investment fund and in whose assets the value of issued securities of other issuers equals to 40 % of his own net assets, shall not have the right to perform operations on further purchase of securities.

Note: Amended by the RK Law № 154-1, dated July 11, 1997, by the RK Law № 282-1, dated July 10, 1998

Article 2. The Legislative Basis for IFs' Activities in the RK

The legislation on IFs shall consist of this Law, the RK President's and the RK Government's normative acts, as well as those of the governmental agency regulating the relationships related to the issuance and circulation of securities (hereinafter referred to as the Authorized Body).

SECTIO№ 2. INVESTMENT FUNDS' FOUNDATION AND FUNCTIONING IN

THE REPUBLIC OF KAZAKHSTAN

Article 3. Investment Funds Foundation and Functioning

1. IFs shall be founded and shall function under the norms of the RK legislation for open-end joint-stock companies with regard given to the specifics provided for in this Law.

2. An IF shall enjoy all the rights to participate in the management of the companies whose shares it holds in its portfolio. Bodies of state management and other bodies may not restrict the statutory right of an IF to participate in managing the emitters of securities held in its portfolio. Should this provision be violated, such bodies and persons shall bear responsibilities stipulated in the RK laws.