Law of the Republic of Kazakstan on the registration of transactions in securities, № 78-1 of 5 March, 1997

Law of the Republic of Kazakstan on the registration of transactions
in securities, № 78-1 of 5 March, 1997
(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; the RK Law On Introduction of
Amendments and Changes in Certain Legislative Acts of the Republic of
Kazakhstan Concerning Joint Stock Companies, dated July 10, 1998, № 282)

     The  present  Law  regulates  activities  of  securities      market

professional   participants   performing   registration   of   securities

transactions with the purpose  of  protection  of  ownership  rights  and

interests of securities owners.

                        CHAPTER 1. GENERAL CLAUSES

     Article 1. Laws on Registration of Transactions in Securities

     Legislation on registration of transactions in securities is based

on the RK     Constitution, The RK Civil Code, and consists of this Law, other

legislative     acts of the RK, normative acts of the RK President, Government and

the state       body regulating securities issue and circulation (hereinafter

referred to as     "authorized body")

Note: Amended by the RK Law № 282, dated July 10, 1998

     Article 2. Principle of  an  exclusive  place  for  registration  of

securities transactions

     1. Registration of securities transactions at a particular moment of

time shall be performed either by an issuer or by one  of  the  following

securities market  professional  participants  (SMPP)   :a broker-dealer,

custodian, Central Depository or a registrar.

     Securities transaction registration  is  fixation  of  the  fact  of

conclusion a transaction by a nominal holder or a registrar resulting  in

transference of rights to securities from one person to another .

     Securities transactions shall be subject to  mandatory  registration

in the procedure established by this Law and by the RK legislative acts.

     2. Confirmation of the rights to securities shall be performed by  a

body conducting registration of these securities transactions.

                 CHAPTER 2. NOMINAL HOLDING OF SECURITIES

     Article 3. Nominal Holding of Securities

     1. Transference of securities into nominal holding does  not  entail

transference of the ownership rights to securities to the nominal holder.

Nominally held securities and  the  securities  of  a  nominal   holder's

clients may not be exacted in favor of such a nominal holder's creditors.

2. In order to exercise the rights of an owner the nominal  holder  shall

register transactions with his securities.

     3. Securities operations among the holders of one nominal holder are

not reflected by a registrar or the Central depository whose client  such

a nominal holder is.

     4. For the owners to be able  to  exercise  the  securities-manifest

rights, when demanded by the registrar, a nominal holder shall present  a

list of registered holders of securities nominally  held  by  him,  of  a