LAW OF THE REPUBLIC OF KAZAKHSTAN

of December 28, 2011 No. 524-IV ZRK

About modification and amendments in some legal acts of the Republic of Kazakhstan concerning banking regulation and the financial organizations regarding risk minimization

Article 1. Make changes and additions to the following legal acts of the Republic of Kazakhstan:

1. In the Civil code of the Republic of Kazakhstan (General part) accepted by the Supreme Council of the Republic of Kazakhstan on December 27, 1994 (Sheets of the Supreme Council of the Republic of Kazakhstan, 1994, No. 23-24 (appendix); 1995, No. 15-16, of Art. 109; No. 20, Art. 121; Sheets of Parliament of the Republic of Kazakhstan, 1996, No. 2, Art. 187; No. 14, Art. 274; No. 19, Art. 370; 1997, No. 1-2, of Art. 8; No. 5, Art. 55; No. 12, Art. 183, 184; Art. No. 13-14, 195, 205; 1998, No. 2-3, of Art. 23; No. 5-6, of Art. 50; No. 11-12, of Art. 178; Art. No. 17-18, 224, 225; No. 23, Art. 429; 1999, No. 20, Art. 727, 731; No. 23, Art. 916; 2000, No. 18, Art. 336; No. 22, Art. 408; 2001, No. 1, Art. 7; No. 8, Art. 52; No. 17-18, of Art. 240; No. 24, Art. 338; 2002, No. 2, Art. 17; No. 10, Art. 102; 2003, No. 1-2, of Art. Z; No. 11, Art. 56, 57, 66; No. 15, Art. 139; No. 19-20, of Art. 146; 2004, No. 6, Art. 42; No. 10, Art. 56; No. 16, Art. 91; No. 23, Art. 142; 2005, No. 10, Art. 31; No. 14, Art. 58; No. 23, Art. 104; 2006, No. 1, Art. 4; No. 3, Art. 22; No. 4, Art. 24; No. 8, Art. 45; No. 10, Art. 52; No. 11, Art. 55; No. 13, Art. 85; 2007, No. 2, Art. 18; No. 3, Art. 20, 21; No. 4, Art. 28; No. 16, Art. 131; No. 18, Art. 143; No. 20, Art. 153; 2008, No. 12, Art. 52; No. 13-14, of Art. 58; No. 21, Art. 97; No. 23, Art. 114, 115; 2009, Art. No. 2-3, 7, 16, 18; No. 8, Art. 44; No. 17, Art. 81; No. 19, Art. 88; No. 24, Art. 125, 134; 2010, No. 1-2, of Art. 2; No. 7, Art. 28; No. 15, Art. 71; No. 17-18, of Art. 112; 2011, No. 2, Art. 21, 28; No. 3, Art. 32; No. 4, Art. 37; No. 5, Art. 43; No. 6, Art. 50; The Law of the Republic of Kazakhstan of July 22, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning the housing relations", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011):

3) of Item 6 of Article 42 of the word "having license for activities" shall be replaced with words 1) in subitem part one "performing activities";

Shall be replaced with words 2) in Item 9 of Article 58 of the word "having license for activities" "performing activities";

Part the second Item 2 of Article 85 to exclude 3);

Part the second item 4 of Article 92 to exclude 4);

Items 2 and 3 of Article 95 to exclude 5);

Items 1 and 2 of article 130 after the word "license" to add 6) with the words "or according to legal acts of the Republic of Kazakhstan".

2. In the Criminal Code of Kazakhstan of July 16, 1997 (The sheet of Parliament of the Republic of Kazakhstan, 1997, No. 15-16, of Art. 211; 1998, No. 16, Art. 219; No. 17-18, of Art. 225; 1999, No. 20, Art. 721; No. 21, Art. 774; 2000, No. 6, Art. 141; 2001, No. 8, Art. 53, 54; 2002, No. 4, Art. 32, 33; No. 10, Art. 106; No. 17, Art. 155; No. 23-24, of Art. 192; 2003, No. 15, Art. 137; No. 18, Art. 142; 2004, No. 5, Art. 22; No. 17, Art. 97; No. 23, Art. 139; 2005, No. 13, Art. 53; No. 14, Art. 58; No. 21-22, of Art. 87; 2006, No. 2, Art. 19; No. 3, Art. 22; No. 5-6, of Art. 31; No. 8, Art. 45; No. 12, Art. 72; No. 15, Art. 92; 2007, No. 1, Art. 2; No. 4, Art. 33; No. 5-6, of Art. 40; No. 9, Art. 67; No. 10, Art. 69; No. 17, Art. 140; 2008, No. 12, Art. 48; No. 13-14, of Art. 58; No. 17-18, of Art. 72; No. 23, Art. 114; No. 24, Art. 126; 2009, No. 6-7, of Art. 32; No. 13-14, of Art. 63; Art. No. 15-16, 71, 73, 75; No. 17, Art. 82, 83; No. 24, Art. 121, 122, 125, 127, 128, 130; 2010, No. 1-2, of Art. 5; No. 7, Art. 28, 32; No. 11, Art. 59; No. 15, Art. 71; No. 20-21, of Art. 119; No. 22, Art. 130; No. 24, Art. 149; 2011, No. 1, Art. 9; No. 2, Art. 19, 28; The Law of the Republic of Kazakhstan of December 3, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan on environmental issues", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on December 8, 2011):

Table of contents to add 1) with paragraphs the two hundred twenty first and two hundred thirty fourth the following content:

"Article 194-1. Inappropriate use of the money received from placement of bonds";

"Article 205-1. Loss of the documents and data constituting system of registers of security holders";

To add 2) with Article 194-1 of the following content:

"Article 194-1. Inappropriate use of the money received from placement of bonds

Acceptance of the issuer by bodies (officials of the issuer), not being the financial organization, the decisions attracting violation of the conditions established by the prospectus of bond issue of this issuer and procedure for use of the money received from placement of bonds if this act caused major damage to bondholders, –

it is punished by penalty at the rate from ten thousand to twenty thousand monthly settlement indicators, or corrective works for a period of up to two years, or imprisonment for the same term.

Note.

Major damage the damage on the amount in ten thousand times exceeding the monthly settlement indicator established by the legislation of the Republic of Kazakhstan at the time of crime execution is recognized this Article.";

To add 3) with Article 205-1 of the following content:

"Article 205-1. Loss of the documents and data constituting system of registers of security holders

Loss of the documents and data constituting system of registers of security holders, person to whom they were entrusted owing to execution of service duties if loss was result of violation of statutory rules of storage and the address with the specified documents, –

it is punished by penalty in the amount of two hundred monthly settlement indicators, or corrective works for a period of up to one year, or restriction of freedom for a period of up to one year, or imprisonment for the same term with deprivation of the right to hold certain positions or to be engaged in certain activities for a period of up to two years or without that.";

The word "open" to exclude 4) in Article 216-1.

3. In the Code of penal procedure of the Republic of Kazakhstan of December 13, 1997 (The sheet of Parliament of the Republic of Kazakhstan, 1997, No. 23, Art. 335; 1998, No. 23, Art. 416; 2000, No. 3-4, of Art. 66; No. 6, Art. 141; 2001, No. 8, Art. 53; No. 15-16, of Art. 239; No. 17-18, of Art. 245; No. 21-22, of Art. 281; 2002, No. 4, Art. 32, 33; No. 17, Art. 155; No. 23-24, of Art. 192; 2003, No. 18, Art. 142; 2004, No. 5, Art. 22; No. 23, Art. 139; No. 24, Art. 153, 154, 156; 2005, No. 13, Art. 53; No. 21-22, of Art. 87; No. 24, Art. 123; 2006, No. 2, Art. 19; No. 5-6, of Art. 31; No. 12, Art. 72; 2007, No. 1, Art. 2; No. 5-6, of Art. 40; No. 10, Art. 69; No. 13, Art. 99; 2008, No. 12, Art. 48; Art. No. 15-16, 62, 63; No. 23, Art. 114; 2009, No. 6-7, of Art. 32; Art. No. 15-16, 71, 73; No. 17, Art. 81, 83; No. 23, Art. 113, 115; No. 24, Art. 121, 122, 125, 127, 128, 130; 2010, No. 1-2, of Art. 4; No. 11, Art. 59; No. 17-18, of Art. 111; No. 20-21, of Art. 119; No. 22, Art. 130; No. 24, Art. 149; 2011, No. 1, Art. 9; No. 2, Art. 19, 28; The Law of the Republic of Kazakhstan of November 9, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning enhancement of law-enforcement activities and further humanization of the penal legislation", published in the newspapers "Egemen Kazakstan" on November 16, 2011 and "The Kazakhstan truth" on November 19, 2011):

in part three of article 192 of figure "199-205" to replace with figures "199-205-1".

4. In the Civil code of the Republic of Kazakhstan (Special part) of July 1, 1999 (The sheet of Parliament of the Republic of Kazakhstan, 1999, No. 16-17, of Art. 642; No. 23, Art. 929; 2000, No. 3-4, of Art. 66; No. 10, Art. 244; No. 22, Art. 408; 2001, No. 23, Art. 309; No. 24, Art. 338; 2002, No. 10, Art. 102; 2003, No. 1-2, of Art. 7; No. 4, Art. 25; No. 11, Art. 56; No. 14, Art. 103; No. 15, Art. 138, 139; 2004, No. 3-4, of Art. 16; No. 5, Art. 25; No. 6, Art. 42; No. 16, Art. 91; No. 23, Art. 142; 2005, No. 21-22, of Art. 87; No. 23, Art. 104; 2006, No. 4, Art. 24, 25; No. 8, Art. 45; No. 11, Art. 55; No. 13, Art. 85; 2007, No. 3, Art. 21; No. 4, Art. 28; No. 5-6, of Art. 37; No. 8, Art. 52; No. 9, Art. 67; No. 12, Art. 88; 2009, No. 2-3, of Art. 16; No. 9-10, of Art. 48; No. 17, Art. 81; No. 19, Art. 88; No. 24, Art. 134; 2010, No. 3-4, of Art. 12; No. 5, Art. 23; No. 7, Art. 28; No. 15, Art. 71; No. 17-18, of Art. 112; 2011, No. 3, Art. 32; No. 5, Art. 43; No. 6, Art. 50, 53; The Law of the Republic of Kazakhstan of July 22, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning the housing relations", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011):

Article 891 to add 1) with Item 6 of the following content:

"6. The procedure and conditions of the termination of trust management of securities are established by the legislation of the Republic of Kazakhstan on the security market.";

The subitem 5) of Item 2 of Article 1040 to state 2) in the following edition:

"5) the personal non-property rights which are not connected with property, except as specified, established by legal acts.".

5. In the Code of the Republic of Kazakhstan about administrative offenses of January 30, 2001 (The sheet of Parliament of the Republic of Kazakhstan, 2001, No. 5-6, of Art. 24; No. 17-18, of Art. 241; No. 21-22, of Art. 281; 2002, No. 4, Art. 33; No. 17, Art. 155; 2003, No. 1-2, of Art. 3; No. 4, Art. 25; No. 5, Art. 30; No. 11, Art. 56, 64, 68; No. 14, Art. 109; No. 15, Art. 122, 139; No. 18, Art. 142; No. 21-22, of Art. 160; No. 23, Art. 171; 2004, No. 6, Art. 42; No. 10, Art. 55; No. 15, Art. 86; No. 17, Art. 97; No. 23, Art. 139, 140; No. 24, Art. 153; 2005, No. 5, Art. 5; No. 7-8, of Art. 19; No. 9, Art. 26; No. 13, Art. 53; No. 14, Art. 58; No. 17-18, of Art. 72; Art. No. 21-22, 86, 87; No. 23, Art. 104; 2006, No. 1, Art. 5; No. 2, Art. 19, 20; No. 3, Art. 22; No. 5-6, of Art. 31; No. 8, Art. 45; No. 10, Art. 52; No. 11, Art. 55; No. 12, Art. 72, 77; No. 13, Art. 85, 86; No. 15, Art. 92, 95; No. 16, Art. 98, 102; No. 23, Art. 141; 2007, No. 1, Art. 4; No. 2, Art. 16, 18; No. 3, Art. 20, 23; No. 4, Art. 28, 33; No. 5-6, of Art. 40; No. 9, Art. 67; No. 10, Art. 69; No. 12, Art. 88; No. 13, Art. 99; No. 15, Art. 106; No. 16, Art. 131; No. 17, Art. 136, 139, 140; No. 18, Art. 143, 144; No. 19, Art. 146, 147; No. 20, Art. 152; No. 24, Art. 180; 2008, No. 6-7, of Art. 27; No. 12, Art. 48, 51; Art. No. 13-14, 54, 57, 58; No. 15-16, of Art. 62; No. 20, Art. 88; No. 21, Art. 97; No. 23, Art. 114; No. 24, Art. 126, 128, 129; 2009, Art. No. 2-3, 7, 21; Art. No. 9-10, 47, 48; Art. No. 13-14, 62, 63; Art. No. 15-16, 70, 72, 73, 74, 75, 76; No. 17, Art. 79, 80, 82; No. 18, Art. 84, 86; No. 19, Art. 88; No. 23, Art. 97, 115, 117; No. 24, Art. 121, 122, 125, 129, 130, 133, 134; 2010, Art. No. 1-2, 1, 4, 5; No. 5, Art. 23; No. 7, Art. 28, 32; No. 8, Art. 41; No. 9, Art. 44; No. 11, Art. 58; No. 13, Art. 67; No. 15, Art. 71; Art. No. 17-18, 112, 114; No. 20-21, of Art. 119; No. 22, Art. 128, 130; No. 24, Art. 146, 149; 2011, No. 1, Art. 2, 3, 7, 9; No. 2, Art. 19, 25, 26, 28; No. 3, Art. 32; No. 6, Art. 50; No. 8, Art. 64; No. 11, Art. 102; No. 12, Art. 111; No. 13, Art. 115, 116; The Law of the Republic of Kazakhstan of July 21, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan on the tax matters", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011; The Law of the Republic of Kazakhstan of July 22, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning population shift", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011; The law of the Republic of Kazakhstan of July 22, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning the housing relations", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011; The Law of the Republic of Kazakhstan of October 11, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning religious activities and religious associations", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on October 15, 2011; The Law of the Republic of Kazakhstan of November 9, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning enhancement of law-enforcement activities and further humanization of the penal legislation", published in the newspapers "Egemen Kazakstan" on November 16, 2011 and "The Kazakhstan truth" on November 19, 2011; The law of the Republic of Kazakhstan of December 3, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan on environmental issues", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on December 8, 2011):

1) in table of contents:

add with the paragraph the two hundred sixtieth the following content:

"Article 168-4. Violation of procedure for forming of risk management system and internal control";

paragraphs two hundred sixty third, the two hundred sixty fourth, the two hundred sixty sixth, the two hundred sixty eighth, the two hundred seventy second, the three hundred second, the three hundred fifth, three hundred twelfth and eight hundred thirty sixth to state in the following edition:

"Article 170. The violations connected with illegal acquisition directly or indirectly of ten or more percent of shares of the financial organization without receipt of written consent of National Bank of the Republic of Kazakhstan

Article 170-1. The violations connected with illegal acquisition of shares in the authorized capital of legal entities or shares by banks, the insurance (reinsurance) organizations, bank holdings, insurance holdings";

"Article 172. Inappropriate use of pension assets of the accumulation pension fund";

"Article 172-2. Failure to carry out by the accumulation pension funds, large members of the accumulation pension funds of the obligations assigned by means of application of limited corrective actions";

"Article 175-1. Violation of the requirements established by the legislation of the Republic of Kazakhstan to procedure for appointment (election) to position of leading employees of the financial organization, bank or insurance holding";

"Article 193. Non-presentation or submission of false information to authorized body in the security market";

"Article 195. Violation of procedure for transactions with securities and (or) derivative financial instruments, and also conditions of the conclusion of transactions";

"Article 199. Failure to carry out by the issuer of securities of requirements to procedure and conditions of disclosure of information on the activities";

"Article 573. Authorized body on control and supervision of the financial market and the financial organizations";

To exclude 2) in part four of Article 52 of the word "and authorized state body on regulation and supervision of the financial market and the financial organizations within their competence";

3) in Article 88:

state part one in the following edition:

"1. Violation by the accumulation pension fund of the pension provision agreements established by the legislation of the Republic of Kazakhstan on provision of pensions of procedure for the conclusion, terms of implementation of retirement benefits, transfers and withdrawals –

attracts penalty on officials in the amount of two hundred, on legal entities – in the amount of four hundred monthly settlement indicators.";

add with part six of the following content:

"6. The announcement or publication by the accumulation pension fund in mass media of the advertizing untrue on the date of publication –

attracts penalty in the amount of two hundred monthly settlement indicators.";

Part the second Article 167-1 to state 4) in the following edition:

"2. Provision by the supplier of information on the subject of credit history in credit bureaus (except for credit bureau with the state participation) for forming of credit history and (or) giving by the receiver of the credit report of request on provision of the credit report without the consent of the subject of information, except as specified provisions of the negative information about the subject of credit history and (or) the credit report containing the negative information about the subject of credit history and also its wrong registration –

attract penalty on the official in the amount of fifty, on the legal entity – in the amount of two hundred monthly settlement indicators.";

5) in Article 168-2:

in part two:

the paragraph one after the word "holdings" to add with words "the organizations which are part of banking conglomerate";

state paragraph two in the following edition:

"attracts penalty on physical person in the amount of fifty, on the official – in the amount of seventy, on the legal entity – in the amount of four hundred fifty monthly settlement indicators.";

the paragraph one of part five after the word "banks" to add with words "bank holdings,";

add with part thirteen of the following content:

"13. The announcement or publication by bank in mass media of the advertizing untrue on the date of publication –

attracts penalty in the amount of two hundred monthly settlement indicators.";

To add 6) with Article 168-4 of the following content:

"Article 168-4. Violation of procedure for forming of risk management system and internal control

1. Violation by the financial organizations of procedure for forming of risk management system and the internal control established by regulatory legal act of National Bank of the Republic of Kazakhstan if the revealed violations will not be eliminated with the financial organization in the terms established by authorized body on control and supervision of the financial market and the financial organizations –

attracts penalty on officials in the amount of fifty, on legal entities – in the amount of hundred monthly settlement indicators.

2. Violation by the parent organization of banking conglomerate or insurance group of the requirements imposed to risk management system and internal control on the consolidated basis established by regulatory legal act of National Bank of the Republic of Kazakhstan if the revealed violations will not be eliminated with the parent organization of banking conglomerate or insurance group in the terms established by authorized body on control and supervision of the financial market and the financial organizations –

attracts penalty on officials in the amount of fifty, on legal entities – in the amount of hundred monthly settlement indicators.

Note.

In this Article it is necessary to understand leading employees of the financial organizations, bank and insurance holdings as officials.";

Articles 170 and 170-1 to state 7) in the following edition:

"Article 170. The violations connected with illegal acquisition directly or indirectly of ten or more percent of shares of the financial organization without receipt of written consent of National Bank of the Republic of Kazakhstan

Acquisition by person directly or indirectly shares of the financial organization in the amount of ten or more percent from placed (less exclusive and redeemed) shares of the financial organization, and also control or opportunity to exert impact on the decisions made by the financial organization in the amount of ten or more percent from placed (less exclusive and redeemed) shares of the financial organization without written consent National Bank of the Republic of Kazakhstan –

attracts penalty on physical persons in the amount of two hundred, on officials – in the amount of four hundred, on the legal entities who are subjects of medium business – in the amount of one thousand, on the legal entities who are subjects of big business – in the amount of two thousand monthly settlement indicators.

Note.

In this Article it is necessary to understand bank, the insurance (reinsurance) organization, the accumulation pension fund, the organization exercising investment control of pension assets as the financial organizations.

Article 170-1. The violations connected with illegal acquisition of shares in the authorized capital of legal entities or shares by banks, the insurance (reinsurance) organizations, bank holdings, insurance holdings

1. Acquisition of shares in the authorized capital of legal entities or shares banks, the insurance (reinsurance) organizations in defiance of requirements of legal acts of the Republic of Kazakhstan, except for the acts provided by part three of this Article –

attracts penalty on officials in the amount of two hundred, on legal entities – in the amount of two thousand monthly settlement indicators.

2. Acquisition of shares in the authorized capital of legal entities or shares bank holdings, insurance holdings in defiance of requirements of legal acts of the Republic of Kazakhstan, except for the acts provided by part three of this Article –

attracts penalty on officials in the amount of four hundred, on legal entities – in the amount of two thousand monthly settlement indicators.

3. Creation or acquisition by bank, insurance (reinsurance) organization, bank holding, insurance holding of the affiliated organization without preliminary permission of National Bank of the Republic of Kazakhstan –

attracts penalty on officials in the amount of four hundred, on legal entities – in the amount of two thousand monthly settlement indicators.";

8) in Article 171:

in paragraph one "open" to exclude the word;

in the paragraph the second to exclude the word "to";

Article 172 to state 9) in the following edition:

"Article 172. Inappropriate use of pension assets of the accumulation pension fund

1. Violation by the organization exercising investment control of pension assets, or the accumulation pension fund having license for activities on investment management of pension assets, conditions and the procedure for investment established by the legislation of the Republic of Kazakhstan –

attracts penalty on physical person in the amount of four hundred, on the legal entity – in the amount of eight hundred monthly settlement indicators.

2. Non-realization by custodian of control of target placement of pension assets of the accumulation pension fund –

attracts penalty on the official of custodian in the amount of two hundred monthly settlement indicators.";

The word "open" to exclude 10) in heading and paragraph one of Article 172-2;

11) in Article 173:

the second to state part in the following edition:

"2. Non-presentation or untimely submission to authorized body on control and supervision of the financial market and the financial organizations by the insurance (reinsurance) organization of cooperation agreement for its registration –

attracts penalty in the amount of four hundred monthly settlement indicators.";

add with part 2-2 following of content:

"2-2. Failure to carry out by the insurance (reinsurance) organization, insurance broker, insurance holding, the organizations which are part of insurance group, large members of the insurance (reinsurance) organization of the obligations assigned to them by authorized body on control and supervision of the financial market and the financial organizations by means of application of limited corrective action –

attracts penalty on physical person in the amount of fifty, on officials – in the amount of hundred, on legal entities – in the amount of two hundred fifty monthly settlement indicators.";

the paragraph one of part four after the word "the organization," to add with words "insurance holding,";

Article 175 to add 12) with part three of the following content:

"3. The violation of requirements of legal acts of the Republic of Kazakhstan by the insurance (reinsurance) organization expressed in non-execution or improper execution of requirements for availability of branches and (or) insurance agents in the capital, the cities of republican, regional and district value, to the conclusion of the agreement of participation in the database on insurance, provision of information in the database on insurance –

attracts penalty on the official in the amount of fifty, on the legal entity – in the amount of five hundred monthly settlement indicators.";

Article 175-1 to state 13) in the following edition:

"Article 175-1. Violation of the requirements established by the legislation of the Republic of Kazakhstan to procedure for appointment (election) to position of leading employees of the financial organization, bank or insurance holding

Violation by the financial organization, bank or insurance holding of requirements to procedure for appointment (election) to leading employee position of the financial organization, bank or insurance holding –

attracts penalty on the legal entity in the amount of two hundred monthly settlement indicators.";

The paragraph third parts one of Article 179 to add 14) with words ", in depositary of the financial reporting";

Article 190 to state 15) in the following edition:

"Article 190. Illegal use of the insider information

1. Actions of insiders for use of the insider information in case of transactions with securities and (or) derivative financial instruments, illegal transfer of the insider information to the third parties, provision to the third parties of the recommendations or offers on transactions with securities and (or) derivative financial instruments based on the insider information and also failure to meet requirements of the legislation of the Republic of Kazakhstan on representation of information to issuers by the legal entities recognized as insiders concerning these issuers if these actions did not cause major damage, –

attract penalty on physical person in the amount of two hundred, on the official – in the amount of four hundred, on the legal entity – in the amount of six hundred monthly settlement indicators.

2. Violation by issuers of the requirements established by the legislation of the Republic of Kazakhstan, regarding control of the order and use of the insider information about the issuer and issued (provided) it securities (derivative financial instruments) –

attracts penalty on the official in the amount of four hundred, on the legal entity – in the amount of six hundred monthly settlement indicators.";

16) in Article 193:

in heading the word "Representation" shall be replaced with words "Non-presentation or representation";

the paragraph one of part one after words to "authorized body" to add with the words "during conducting checks of activities of subjects of the security market";

Articles 194, of 195, of 196, 196-1 and 199 to state 17) in the following edition:

"Article 194. Violation of the rights of security holders

1. Violation of shareholder rights on administration of joint-stock company, procedure for distribution of part of the income (dividend payout), on preferential security purchase, on receipt of information on activities of society, and also violation of procedure for convocation and holding the general shareholder meeting established by the legislation of the Republic of Kazakhstan –

attract penalty on the official in the amount of two hundred, on the legal entity – in the amount of four hundred monthly settlement indicators.

2. Violation by the established legislation of the Republic of Kazakhstan of procedure and conditions of payment of remuneration on bonds and (or) their repayments –

attracts penalty on the official in the amount of two hundred, on the legal entity – in the amount of four hundred monthly settlement indicators.

3. Violation by the issuer of securities of procedure and conditions of the redemption of the securities placed by it in the cases established by the legislation of the Republic of Kazakhstan and (or) the prospectus of release of these securities, and also non-realization of the redemption of the securities placed by it in the cases established by the legislation of the Republic of Kazakhstan and (or) the prospectus of release of these securities –

attract penalty on the official in the amount of two hundred, on the legal entity – in the amount of four hundred monthly settlement indicators.

Article 195. Violation of procedure for transactions with securities and (or) derivative financial instruments, and also conditions of the conclusion of transactions

Violation of the procedure for transactions established by the legislation of the Republic of Kazakhstan with securities and (or) derivative financial instruments, and also conditions of the conclusion of the transactions established by the legislation of the Republic of Kazakhstan –

attracts penalty on physical persons in the amount of two hundred, on officials, individual entrepreneurs – in the amount of three hundred, on the legal entities who are subjects of small or medium business – in the amount of four hundred, on the legal entities who are subjects of big business – in the amount of five hundred monthly settlement indicators.

Article 196. Violation of order of registration of security transactions, accounting and confirmation of the rights on them

1. Violation by the professional participant of the security market of procedure for maintaining system of registers of security holders or system of accounting of nominal continence, and is equal violation of procedure for confirmation of the rights on securities, not having signs of penal act, –

attract penalty on the official in the amount of two hundred, on the legal entity – in the amount of three hundred monthly settlement indicators.

2. Violation by the professional participant of the security market the established legislation of the Republic of Kazakhstan of procedure and the conditions of document transfer and data constituting system of registers of security holders or system of nominal continence, to other professional participant of the security market –

attracts penalty on the official in the amount of three hundred, on the legal entity – in the amount of four hundred monthly settlement indicators.

Article 196-1. Violation by the issuer of conditions and procedure for release and (or) placement of issued securities

1. Violation by the issuer of the conditions and procedure for release and (or) placement of the issued securities established by the legislation of the Republic of Kazakhstan, including connected with the violation by the issuer which is not the financial organization, the conditions established by the prospectus of bond issue and the procedure for use of the money received from placement of bonds, except for actions, provided by part two of this Article –

attracts penalty on officials in the amount of three hundred, on the legal entities who are subjects of small or medium business – in the amount of four hundred, on the legal entities who are subjects of big business – in the amount of five hundred monthly settlement indicators.

2. Violation by the issuer of conditions and procedure for placement of the issued securities in the territory of foreign state established by the legislation of the Republic of Kazakhstan –

attracts penalty on legal entities in the amount of fifty percent from amount of money received from placement of issued securities.";

"Article 199. Failure to carry out by the issuer of securities of requirements to procedure and conditions of disclosure of information on the activities

Failure to carry out by the issuer of securities of requirements to procedure and the conditions of disclosure of information on the activities established by the legislation of the Republic of Kazakhstan and (or) internal regulations of stock exchange and also idea by the issuer of incomplete or unreliable information of the activities –

attract penalty on officials in the amount of two hundred, on legal entities – in the amount of four hundred monthly settlement indicators.";

"194," to exclude 18) in part one of Article of 541 figures;

Article 573 to state 19) in the following edition:

"Article 573. Authorized body on control and supervision of the financial market and the financial organizations

1. The authorized body on control and supervision of the financial market and the financial organizations considers cases on the administrative offenses provided by Articles 88 (parts one, the 1-1, 1-2 and sixth), 158-1, 158-2, 167-1 (part one), 168-2 (parts one – the ninth, twelfth and thirteenth), 168-4, 170, 170-1, 171, 172, 172-1, 172-2, 173, 174, 175 (parts one and third), 175-1, 175-2, 179-3, 191, 193, 194, 194-1, 195, 195-1, 196, 196-1, 197, 197-1, 198, 199, 201, 201-1, 218, 357-2 (part one) of this Code.

2. Consider cases on administrative offenses and impose administrative penalties the first head of authorized body on control and supervision of the financial market and the financial organizations and his deputies has the right.";

20) in the subitem 1) Article 636 parts one:

the thirty first to state the paragraph in the following edition:

"authorized body on control and supervision of the financial market and the financial organizations (Article 158, 167-1 (parts two and third), 168-3, 184, 184-1 (part three), 190, 192, 200, 202, 356)";

in the paragraph thirty third "195," to exclude figures;

in the paragraph the thirty seventh "193, 196," to exclude figures.

6. In the Budget code of the Republic of Kazakhstan of December 4, 2008 (The sheet of Parliament of the Republic of Kazakhstan, 2008, No. 21, Art. 93; 2009, No. 23, Art. 112; No. 24, Art. 129; 2010, No. 5, Art. 23; No. 7, Art. 29, 32; No. 15, Art. 71; No. 24, Art. 146, 149, 150; 2011, No. 2, Art. 21, 25; No. 4, Art. 37; No. 6, Art. 50; No. 7, Art. 54; No. 11, Art. 102; The Law of the Republic of Kazakhstan of July 21, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning enhancement of external state financial control", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011; The law of the Republic of Kazakhstan of July 22, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning the organization of Islamic financing", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011; The Law of the Republic of Kazakhstan of July 22, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning the housing relations", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011; The Law of the Republic of Kazakhstan of November 24, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning differentiation of competence of authorized bodies on the state and budgetary planning and enhancement of budget process", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on November 29, 2011):

37) of Item 1 of Article 3 to add the subitem with the words "and the borrowings performing for this purpose in the financial market of the Republic of Kazakhstan and (or) the international financial market".

7. In the Code of the Republic of Kazakhstan of December 10, 2008 "About taxes and other obligatory payments in the budget" (Tax code) (Sheets of Parliament of the Republic of Kazakhstan, 2008, 22-I, 22-II, Art. 112; 2009, Art. No. 2-3, 16, 18; No. 13-14, of Art. 63; No. 15-16, of Art. 74; No. 17, Art. 82; No. 18, Art. 84; No. 23, Art. 100; No. 24, Art. 134; 2010, No. 1-2, of Art. 5; No. 5, Art. 23; No. 7, Art. 28, 29; No. 11, Art. 58; No. 15, Art. 71; No. 17-18, of Art. 112; No. 22, Art. 130, 132; No. 24, Art. 145, 146, 149; 2011, No. 1, Art. 2, 3; No. 2, Art. 21, 25; No. 4, Art. 37; No. 6, Art. 50; No. 11, Art. 102; No. 12, Art. 111; No. 13, Art. 116; No. 14, Art. 117; The law of the Republic of Kazakhstan of July 21, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning special economic zones", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011; The Law of the Republic of Kazakhstan of July 22, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning population shift", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on August 6, 2011; The Law of the Republic of Kazakhstan of November 24, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan concerning differentiation of competence of authorized bodies on the state and budgetary planning and enhancement of budget process", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on November 29, 2011; The law of the Republic of Kazakhstan of December 3, 2011 "About modification and amendments in some legal acts of the Republic of Kazakhstan on environmental issues", published in the Egemen Kazakstan and Kazakhstan Truth newspapers on December 8, 2011):

Article 541 to add 1) with subitem 23-1) of the following content:

"23-1) representatives of bondholders – in case of submission of claims on behalf of bondholders concerning non-execution by issuers of the obligations established by the prospectus of bond issue;";

2) in Article 581 part one:

5) to add the subitem with part two of the following content:

"The obligation established by this subitem extends including to the affiliated organizations of bank acquiring doubtful and bad assets of parent bank and also to the organization specializing in improvement of quality of credit portfolios of banks of the second level which hundred percent of voting shares belong to National Bank of the Republic of Kazakhstan;";

10) to add the subitem with part two of the following content:

"The obligation established by this subitem extends including to the affiliated organizations of bank acquiring doubtful and bad assets of parent bank and also to the organization specializing in improvement of quality of credit portfolios of banks of the second level which hundred percent of voting shares belong to National Bank of the Republic of Kazakhstan;".

8. In the Law of the Republic of Kazakhstan of March 30, 1995 "About National Bank of the Republic of Kazakhstan" (Sheets of the Supreme Council of the Republic of Kazakhstan, 1995, No. 3-4, of Art. 23; No. 12, Art. 88; No. 15-16, of Art. 100; No. 23, Art. 141; Sheets of Parliament of the Republic of Kazakhstan, 1996, No. 2, Art. 184; No. 11-12, of Art. 262; No. 19, Art. 370; 1997, No. 13-14, of Art. 205; No. 22, Art. 333; 1998, No. 11-12, of Art. 176; 1999, No. 20, Art. 727; 2000, No. 3-4, of Art. 66; No. 22, Art. 408; 2001, No. 8, Art. 52; No. 10, Art. 123; 2003, No. 15, Art. 138, 139; 2004, No. 11-12, of Art. 66; No. 16, Art. 91; No. 23, Art. 142; 2005, No. 14, Art. 55; No. 23, Art. 104; 2006, No. 4, Art. 24; No. 13, Art. 86; 2007, No. 2, Art. 18; No. 3, Art. 20; No. 4, Art. 33; 2009, No. 8, Art. 44; No. 13-14, of Art. 63; No. 17, Art. 81; No. 19, Art. 88; 2010, No. 5, Art. 23; 2011, No. 1, Art. 2; No. 5, Art. 43; No. 11, Art. 102; No. 13, Art. 116):

Article 2 to state 1) in the following edition:

"Article 2. Status and legal basis of activities of National Bank of Kazakhstan

The National Bank of Kazakhstan is the state body which is providing development and carrying out monetary policy of the state, functioning of payment systems, performing currency control and control, state regulation, control and supervision of the financial market and the financial organizations, state regulation of functioning of regional financial center of the city of Almaty, promoting stability of financial system and carrying out the state statistics.

The National Bank of Kazakhstan in the activities is guided by the Constitution of the Republic of Kazakhstan, this Law, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and international treaties of the Republic of Kazakhstan.";

2) in Article 8:

the subitem to-1) later words "National Bank of Kazakhstan," to add with the words "and Development bank of Kazakhstan";

in the subitem of l-2) of the word "all financial organizations" shall be replaced with words "the financial organizations, special finance companies, Islamic special finance companies".

9. In the Law of the Republic of Kazakhstan of May 2, 1995 "About economic partnerships" (Sheets of the Supreme Council of the Republic of Kazakhstan, 1995, No. 7, Art. 49; No. 15-16, of Art. 109; Sheets of Parliament of the Republic of Kazakhstan, 1996, No. 14, Art. 274; No. 19, Art. Z70; 1997, No. 12, Art. 183, 184; Art. No. 13-14, 205, 210; 1998, No. 5-6, of Art. 50; No. 17-18, of Art. 224; 2003, No. 11, Art. 56; No. 24, Art. 178; 2007, No. 4, Art. 28; 2008, No. 12, Art. 52; No. 13-14, of Art. 56; 2010, No. 1-2, of Art. 2; No. 5, Art. 23; 2011, No. 6, Art. 50):

in part three of Item 8 of Article 4 of the word "having license for activities" shall be replaced with words "performing activities".

10. In the Law of the Republic of Kazakhstan of August 31, 1995 "About banks and banking activity in the Republic of Kazakhstan" (Sheets of the Supreme Council of the Republic of Kazakhstan, 1995, No. 15-16, of Art. 106; Sheets of Parliament of the Republic of Kazakhstan, 1996, No. 2, Art. 184; No. 15, Art. 281; No. 19, Art. 370; 1997, No. 5, Art. 58; No. 13-14, of Art. 205; No. 22, Art. 333; 1998, No. 11-12, of Art. 176; No. 17-18, of Art. 224; 1999, No. 20, Art. 727; 2000, No. 3-4, of Art. 66; No. 22, Art. 408; 2001, No. 8, Art. 52; No. 9, Art. 86; 2002, No. 17, Art. 155; 2003, No. 5, Art. 31; No. 10, Art. 51; No. 11, Art. 56, 67; No. 15, Art. 138, 139; 2004, No. 11-12, of Art. 66; No. 15, Art. 86; No. 16, Art. 91; No. 23, Art. 140; 2005, No. 7-8, of Art. 24; No. 14, Art. 55, 58; No. 23, Art. 104; 2006, No. 3, Art. 22; No. 4, Art. 24; No. 8, Art. 45; No. 11, Art. 55; No. 16, Art. 99; 2007, No. 2, Art. 18; No. 4, Art. 28, 33; 2008, No. 17-18, of Art. 72; No. 20, Art. 88; No. 23, Art. 114; 2009, Art. No. 2-3, 16, 18, 21; No. 17, Art. 81; No. 19, Art. 88; No. 24, Art. 134; 2010, No. 5, Art. 23; No. 7, Art. 28; No. 17-18, of Art. 111; 2011, No. 3, Art. 32; No. 5, Art. 43; No. 6, Art. 50; No. 12, Art. 111; No. 13, Art. 116; No. 14, Art. 117):

1) in Article 2:

in the subitem 1):

in paragraph one:

to exclude words of "one legal entity";

to exclude the word of "another";

in the paragraph the second:

to exclude words of "legal entities";

words of "other person", "other legal entity" shall be replaced with words "legal entity";

third to state the paragraph in the following edition:

"opportunity availability at one person independently to choose at least a half of structure of governing body or executive body of the legal entity;";

in paragraph four to exclude the word of "one";

in paragraph five:

shall be replaced with words words of "one legal entity" "one person independently or together with one or several persons";

to exclude the word of "another";

3) to state the subitem in the following edition:

"3) banking conglomerate – the group of legal entities consisting of bank holding, bank, and also the affiliated organizations of bank holding and (or) the affiliated organizations of bank and (or) the organizations in which the bank holding and (or) its affiliated organizations have considerable equity participation.

The national managing holding, bank nonresident holding of the Republic of Kazakhstan, and also the affiliated organizations and the organizations in which the bank nonresident holding of the Republic of Kazakhstan has considerable equity participation, being nonresidents of the Republic of Kazakhstan are not part of banking conglomerate;";

the paragraph one of the subitem 4) after the words "managing holding" to add with words ", and also the cases provided by this Law";

To add 2) with Article 5-1 of the following content:

"Article 5-1. The organization specializing in improvement of quality of credit portfolios of banks of the second level

1. The organization specializing in improvement of quality of credit portfolios of banks of the second level is created by National Bank which owns hundred percent of voting shares of such organization.

2. The organization specializing in improvement of quality of credit portfolios of banks of the second level having the right to perform the following types of activity:

1) to issue shares for forming of the authorized capital, and also to issue bonds for financing of own activities;

2) to redeem own placed shares and bonds;

3) to make assessment of doubtful and bad assets, including the doubtful and hopeless rights of requirements to legal entities and other rights of requirements to them;

To acquire 4) at banks doubtful and bad assets and to realize them;

5) to make assessment of shares and (or) shares in the authorized capital of legal entities, the rights to claim against whom are acquired at banks by the organization specializing in improvement of quality of credit portfolios of banks of the second level;

6) to acquire shares and (or) shares in the authorized capital of legal entities, the rights to claim against whom are acquired at banks by the organization specializing in improvement of quality of credit portfolios of banks of the second level;

7) to realize shares and (or) shares in the authorized capital of legal entities, the rights to claim against whom are acquired at banks by the organization specializing in improvement of quality of credit portfolios of banks of the second level;

8) to make assessment of the shares and (or) bonds issued and placed by banks at which doubtful and bad assets are acquired;

9) to acquire the shares and (or) bonds issued and placed by banks at which the organization specializing in improvement of quality of credit portfolios of banks of the second level acquires the rights to claim on doubtful and bad assets;

10) to realize the shares and (or) bonds issued and placed by banks at which the organization specializing in improvement of quality of credit portfolios of banks of the second level acquires the rights to claim on doubtful and bad assets;

11) to lease the property received on to the rights to claim against legal entities acquired by the organization specializing in improvement of quality of credit portfolios of banks of the second level at banks, or to use other form of paid temporary use by such property;

12) to place money in securities, and also in banks of the second level and National Bank on the terms of bank account agreements and bank deposit;

13) to make transactions on securitization of the rights of the requirements and other doubtful and bad assets acquired by the organization specializing in improvement of quality of credit portfolios of banks of the second level;

14) to acquire services of banks, other financial organizations, professional experts and international auditors and auditing organizations in assessment, trust management, restructuring and recovery (increase) of cost of the acquired rights of requirements to legal entities and other doubtful and bad assets.

The procedure the organization specializing in improvement of quality of credit portfolios of banks of the second level, the types of activity provided by this Item and also requirements to the acquired (acquired) it doubtful and bad assets is established by regulatory legal act of National Bank.

The organization specializing in improvement of quality of credit portfolios of banks of the second level for the rights to claim yielded to it under agreements of bank loan is recognized the creditor (creditor) on banking loan activity and has all rights and obligations established by the agreement of bank loan.";

Article 8 to state 3) in the following edition:

"Article 8. The activities prohibited or limited for banks and bank holdings

1. Implementation of the transactions and transactions as business activity which are not belonging to banking activity or not stipulated in Item the 9th this Article, Item 12 of article 30 of this Law and also acquisition of shares in the authorized capital or shares of legal entities, creation and participation in activities of the non-profit organizations, except as specified, established by this Law and implementation of security transactions in cases, stipulated in Item the 8th this Article is forbidden to banks.

2. Implementation of transactions and transactions as business activity, and also acquisition of shares in the authorized capital or shares of legal entities, creation and participation in activities of the non-profit organizations, except as specified, established by this Law and implementation of security transactions in cases, stipulated in Item the 8th this Article is forbidden to bank holdings.

3. The prohibition established by Items 1 and 2 of this Article does not extend to the following cases of creation, and also share acquisition or share in the authorized capital:

1) banks:

the financial organizations, and also the legal nonresident persons of the Republic of Kazakhstan having the status of banks, insurance companies, pension funds, professional participants of the security market;

the financial organizations, and also the legal nonresident persons of the Republic of Kazakhstan having the status of banks, insurance companies, pension funds, professional participants of the security market in the amount of ten or more percent from placed (less exclusive and redeemed by society) shares (shares in the authorized capital) in the presence at it bank holding. At the same time the requirement for availability of bank holding does not extend to banks which more than fifty percent of voting shares belong to the state or national managing holding;

legal entities in the amount of less than ten percent from placed (less exclusive and redeemed by society) shares (shares in the authorized capital) on condition of compliance of the acquired shares (shares in the authorized capital) to requirements of regulatory legal act of authorized body;

the affiliated special nonresident organizations of the Republic of Kazakhstan created for the purpose of release and placement of securities under guarantee of bank;

the subsidiary special finance companies created according to the legislation of the Republic of Kazakhstan on securitization;

the affiliated resident organizations of the Republic of Kazakhstan acquiring doubtful and bad assets of parent bank;

the affiliated organizations which exclusive activities is collection of banknotes, coins and values, implementation of leasing activities;

the organizations rendering services in ensuring information, telecommunication and technological exchange between participants of calculations for banking activity including calculations for transactions with payment cards;

the organizations performing activities for the certificate of compliance of open key of the digital signature to the closed key of the digital signature, and also for confirmation of reliability of the registration certificate;

the legal entities specified in article 10 of this Law;

legal entities, when the shares accepted as pledge or share in the authorized capital of these organizations carry over banks according to the civil legislation of the Republic of Kazakhstan and the legislation of foreign state;

the stock exchanges and the central depositary performing activities in the territory of the Republic of Kazakhstan;

credit bureaus;

other legal entities – when implementing by Islamic bank of the banking activity provided by Chapter 4-1 of this Law;

2) bank holdings:

financial organizations;

the resident organizations of the Republic of Kazakhstan acquiring doubtful and hopeless requirements of banks of the second level for management of them and (or) their subsequent realization, restructuring and (or) securitization;

the special nonresident organizations of the Republic of Kazakhstan created for the purpose of release and placement of securities under guarantee of bank holding;

the special finance companies created according to the legislation of the Republic of Kazakhstan on securitization;

the organizations which exclusive activities is collection of banknotes, coins and values, implementation of leasing activities;

the organizations rendering services in ensuring information, telecommunication and technological exchange between participants of calculations for banking activity including calculations for transactions with payment cards;

the legal nonresident persons of the Republic of Kazakhstan having the status of banks, insurance companies, pension funds, professional participants of the security market.

The affiliated organizations of bank, except as specified, the stipulated in Article 11-2 presents of the Law having the right to acquire only shares or shares in the authorized capital of the legal entities conforming to the requirements established by regulatory legal act of authorized body. The affiliated insurance (reinsurance) organizations of bank including have the right to acquire shares of the organization guaranteeing implementation of insurance payments to insurers (insured, to beneficiaries) in case of involuntary liquidation of insurance companies, and the organization for forming and maintaining the database.

The affiliated organizations of bank holding have the right to acquire only shares or shares in the authorized capital of the legal entities conforming to the requirements established by regulatory legal act of authorized body. The affiliated insurance (reinsurance) organizations of bank holding including have the right to acquire shares of the organization guaranteeing implementation of insurance payments to insurers (insured, to beneficiaries) in case of involuntary liquidation of insurance companies, and the organization for forming and maintaining the database. This requirement does not extend on:

affiliated resident banks of the Republic of Kazakhstan;

legal entities in whom the bank holding is the parent organization through ownership (availability of opportunity to vote, determine decisions and (or) to exert impact on the made decisions owing to the agreement or otherwise) shares of the resident bank of the Republic of Kazakhstan who is directly owning (having opportunity to vote, determine decisions and (or) to exert impact on the made decisions owing to the agreement or otherwise) of shares or shares in the authorized capital of the specified legal entities;

nonresidents of the Republic of Kazakhstan who are the affiliated organizations of nonresidents of the Republic of Kazakhstan, being bank holding, in case of accomplishment of one of the following conditions:

availability at bank holding of individual credit rating not below rating And one of rating agencies which list is determined by authorized body, and also the written confirmation from body of financial supervision of country of source of specified persons that they are subject to the consolidated supervision;

availability at bank holding of individual credit rating below rating And, but not below the sovereign score in foreign currency assigned to the Republic of Kazakhstan, one of rating agencies which list is established by authorized body, and also agreements between authorized body and the relevant supervisory authority of foreign state on exchange of information.

4. Acquisition of shares by bank in the authorized capital or shares of the legal entities specified in the subitem 1) of Item 3 of this Article shall not exceed on one legal entity of ten percent of equity of bank. This restriction extends to ownership of bank of shares in the authorized capital or shares of the specified legal entities, including in cases of their creation.

Aggregate value of shares of bank in the authorized capital or shares of the legal entities specified in the subitem 1) of Item 3 of this Article shall not exceed the size determined by regulatory legal act of authorized body.

5. Acquisition and ownership of bank in the amount of ten or more percent from placed (less exclusive and redeemed by society) shares or shares in the authorized capital of the financial organizations, and also the legal nonresident persons of the Republic of Kazakhstan having the status of banks, insurance companies, pension funds, professional participants of the security market are allowed on condition of accomplishment of the additional requirements by bank to the minimum sufficiency of equity established by regulatory legal act of authorized body. This requirement extends to cases of creation by bank of the specified legal entities.

6. The cumulative share fraction (share in the authorized capital) the parent organization of banking conglomerate, bank or bank holding belonging to the affiliated organizations of bank or bank holding, the organizations in which the bank or bank holding have considerable equity participation shall not exceed the limits determined by regulatory legal act of authorized body.

7. In case of acquisition by banks of shares or shares in the authorized capital of legal entities in cases when the shares accepted as pledge or share in the authorized capital of these organizations carry over banks according to the civil legislation of the Republic of Kazakhstan and the legislation of foreign state, participation of bank in such legal entities shall not exceed ten percent of equity of bank.

The term of implementation of shares or shares in the authorized capital shall be no more than twelve months, except as specified transfers of the shares or shares accepted by bank as pledge in the authorized capital of these organizations of the affiliated organization of bank created (acquired) on the conditions determined by article 11-2 of this Law.

The restrictions set by this Item extend to the affiliated organizations of banks, except for the affiliated organization of bank created (acquired) on the conditions determined by article 11-2 of this Law.

8. The prohibition established by Items 1 and 2 of this Article does not extend to acquisition cases in property:

bonds of international financial institutions which list is established by authorized body;

the bonds having the minimum required rating. The minimum required rating and the list of rating agencies are established by regulatory legal act of authorized body;

bonds of the special finance company which is the affiliated organization of bank or the bank holding created according to the legislation of the Republic of Kazakhstan on securitization, issued within implementation of the transaction of securitization between bank or bank holding and special finance company;

own bonds bank or bank holding and the bonds issued by the affiliated organizations of this bank or bank holding on which obligations are guaranteed by bank or bank holding. The procedure for transactions with such bonds is determined by regulatory legal act of authorized body.

The restrictions set by this Article do not extend to cases of acquisition by bank, bank holding of the bonds which in exchange are earlier acquired of the organizations which are in process of restructuring on condition of inclusion of obligations on earlier issued bonds in the list of the re-structured obligations of this organization.

9. In addition to the activities specified in Item 1 of this Article, banks have the right to be engaged in the following types of activity:

1) implementation of the specialized software used for automation of activities of the banks and organizations performing separate types of banking activities according to legal acts of the Republic of Kazakhstan;

2) realization of special literature concerning banking activity on any kinds of data carriers;

3) realization of own property;

4) release, realization and distribution of payment cards and checkbooks;

5) implementation of interbank clearing (collection, reconciliation, sorting and payment confirmation, and also carrying out their offset and determination of net line items of participants of clearing – the banks and the organizations performing separate types of banking activities);

6) release, realization, acquisition and repayment of electronic money, and also provision of services on data collection and processing on transactions with electronic money;

7) realization in the procedure for the property pledged by borrowers established by legal acts of the Republic of Kazakhstan;

8) provision of consulting services in the questions connected with financial activities;

9) representation of interests of other persons on the questions connected with banking activity or as the representative of bondholders;

10) the organization of training in advanced training of specialists in the field of banking and financial activities;

11) according to the certificate of compliance of open key of the digital signature to the closed key of the digital signature, and also on confirmation of reliability of the registration certificate concerning the clients using its banking services in the presence of the license of the authorized state body performing management in the field of informatization;

12) the conclusion of insurance contracts on behalf of the insurance resident organizations of the Republic of Kazakhstan, and also the conclusion of pension provision agreements on behalf of the accumulation pension funds, in the presence of the contract between bank and insurance organizatsiyamirezidenta of the Republic of Kazakhstan and (or) the accumulation pension funds for the conclusion from their name of insurance contracts and (or) pension provision agreements.

10. In addition to the activities specified in Item 2 of this Article, bank holdings have the right to be engaged in the following types of activity:

1) purchase of the property from the face which is not tied with bank holding the special relations, acquired for own needs;

2) provision of consulting services in the questions connected with financial activities;

3) sale of own property to person who is not connected with bank holding the special relations.

11. Release of "golden share" is forbidden to banks and bank holdings.

12. Transactions with government securities and non-state securities in the secondary market, and also with derivative financial instruments consist banks only in the organized market of the securities, except as specified, established by regulatory legal act of authorized body.

13. Requirements of this Article do not extend on:

1) bank holdings of Islamic banks;

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