LAW OF THE REPUBLIC OF TAJIKISTAN

of March 10, 1992 No. 552

About securities and stock exchanges

This Law determines the single principles of release and security circulation, and also regulation of activities and the relation of members of the security market - issuers of securities, investors and professional participants of the security market.

The purpose of this Law is development in the republic of the security market for ensuring economic growth due to mobilization of financial resources, their redistribution and rational use, carrying out state policy on encouragement of the companies to release and security sale, establishment of legal guarantees for providing persons acquiring securities, necessary information on the companies which securities are offered to sale.

The law establishes necessary requirements to competence and solvency of persons performing activities for release and security circulation, creates conditions for the organization in the republic of necessary structures for implementation of the transactions with securities guaranteeing efficiency and clearness of carrying out transactions for the benefit of development of the republican security market.

CHAPTER 1. General provisions

Article 1. Legislation on securities and stock exchanges

The relations connected with release and security circulation, activities of professional participants of the security market are regulated by this Law and other regulatory legal acts of the Republic of Tajikistan.

Professional activity peculiarities in the security market of foreign legal entities and the companies with foreign investments are regulated by regulatory legal acts of the Republic of Tajikistan about foreign investments.

Article 2. Main terms and concepts

The main terms and concepts which are used in this Law:

the issuer of securities - the legal entity performing issue of securities according to the current legislation which on its own behalf shall fulfill the obligations to owners of securities following from conditions of issue of securities (further - the issuer);

the investor - the physical person or legal entity performing investment of own means in securities;

securities - the documents certifying expressed in them and property rights of the owner realized by means of their presentation or transfer in relation to the issued person. In the cases provided by this Law for the implementation and assignment of rights certified by personalized security there are enough proofs of their fixing in the special register (regular or computerized);

the prospectus of the issue - the document package containing information on the issuer, its financial condition and the securities issued by it;

the certificate of security is the document issued by the issuer to the owner of securities in confirmation of its rights to securities, which is not security;

issue of securities - placement of securities for the purpose of forming of authorized fund and attraction of borrowed funds;

the organized market of securities - the sphere of security circulation in which security transactions are regulated by the procedure and conditions established by the organizer of the biddings for participants of these transactions according to the current legislation;

the unorganized market of securities - the sphere of security circulation in which security transactions are performed without observance of requirements of the organized market;

security circulation - the conclusion of civil security transactions;

professional participants of the security market - the legal entities having the license for implementation of one or several types of professional activity in the security market;

securities are considered as documents to bearer if for realization of the property rights connected with their ownership there is enough presentation of security;

securities are nominal if registration of name of the owner in the register of security holders is necessary for realization of the property rights connected with their ownership".

Article 3. Form of issue of securities

Securities can be issued in the following forms:

a) documentary;

b) paperless.

Documentary form of issue of securities - release form in case of which property rights on securities are fixed on material carriers (paper or other materials).

Bearer securities can be issued only in documentary form.

Paperless form of issue of securities - release form in case of which property rights on personalized securities are fixed in the special register (regular or computerized).

The form of issue of securities can be changed by the issuer with entering of corresponding changes into the documents submitted on state registration of issue.

The issuer, the specialized organization or the body (organization) authorized by the Government of the Republic of Tajikistan, the performing maintaining and storage of the register of security holders shall issue upon the demand of the owner of securities to it the document certifying its property rights.

Article 4. Securities to which operation of this Law extends

Operation of this Law extends to the following types of securities:

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