Accepted at the eighteenth plenary session of Inter-parliamentary Assembly of the State Parties of the CIS (The resolution of November 24, 2001 No. 18-7)
About the security market
1. This Law governs the relations arising in case of issue and the circulation of issued securities and also the relations connected with implementation of professional activity in the security market, state regulation and supervision and non-state regulation and control in the security market for the purpose of ensuring safe, open and effective functioning of the security market, protection of the rights of investors and owners of securities and fair competition of professional participants of the security market.
2. Provisions of this Law are not applied to the relations arising in case of issue of government securities.
The securities certifying the participation rights, debt obligations and other rights to claim, and also other property and non-property rights which certify identical amount of the rights of their owners within one release in relation to person assuming the specified obligations (further - the issuer) are issued securities.
Issued securities (further - securities) are shares, bonds, and also other types of securities, including the derivative securities and debt securities carried by the law to issued securities.
1. The documentary security represents the written instrument on paper certifying with observance of the established form and obligatory details of the right of its owner which implementation and transfer are possible only in case of presentation of the specified document. Details of the securities issued in documentary form are established by the law.
To the owner of the documentary security the certificate on several securities of one release or on all issue of securities with one state registration number can be issued.
The main requirements to transfer and recovery of the rights, and also to obligation fulfillment on securities in the document form are established by the Civil code and other laws.
In documentary form only bearer securities can be issued.
2. Concerning documentary securities their immobilization by means of transfer on storage to the central depositary can be performed. The rights according to the immobilized documentary securities make sure and address by rules, the established this Law for bank entry securities.
Documentary securities can be immobilized based on the contract between the central depositary and the issuer of the corresponding securities if it is provided by conditions of their release.
Documentary securities can be immobilized based on the contract between their owner and the central depositary.
Condition of the admission of documentary securities on the organized markets of securities is their obligatory immobilization.
The procedure for immobilization of the foreign documentary securities allowed to the address in the national security market is established by authorized state body.
3. Storage of the immobilized documentary securities at the central depositary is performed separately from property of the central depositary, and in the financial reporting of the central depositary the immobilized documentary securities are reflected separately from assets of the central depositary. Other features of storage of the immobilized securities are established by authorized state body.
1. Bank entry securities are personalized securities on which rights make sure entry on the account of the register of owners of securities or record on the security account at the depositary acting as the nominee holder.
2. The certificate of the rights of the owner of security at the same time by the document and entry on the account in the register of owners of securities or on the security account at depositary, and also entry on the account in the register of owners of securities and on the security account at depositary is not allowed.
1. The rights on bank entry securities are considered arisen from the moment of the registration of the rights of their first owners performed according to this Law.
The rights according to documentary securities to bearer arise from the moment of issue by their issuer to the first owners.
2. The origin, transition (transfer), change and the termination of the rights on bank entry securities taking place in case of any change of the owner or other owner on securities, any having гражданско - legal nature encumbrance of its rights on securities are subject to registration and by any transfer of securities to the nominee holder.
Also restrictions of public nature in the address or in implementation of the rights on bank entry securities (arrest, restriction on hand, etc.), established by the court or other state body given such authority according to the law are subject to registration.
3. Registration of the rights on bank entry securities is performed by introduction and (or) change of entries on accounts in the register of owners of securities or records on security accounts at depositary.
Registration of the rights according to the immobilized documentary securities is performed by opening of security accounts by the central depositary, and also introduction and (or) change of records on such accounts.
4. Entry in the register of owners of securities or record on the security account at depositary is the proof of existence of the appropriate rights of owners and other owners and nominee holders of securities, encumbrance of these rights or restrictions of the address or implementation of the rights.
Requirements to content of entries in the register of owners of securities and on security accounts at depositary, and also conditions and procedure for maintaining such registers and accounts are established by this Law and authorized state body.
The register of owners of securities is set of consecutive records about owners of securities (persons who belong the rights certified by securities, trustees, pawnbrokers, other owners on securities), and also about nominee holders of securities which contain the data allowing to identify owners and nominee holders of securities, other owners on securities and also type of these securities, their nominal value and the number of securities, type and the nature of the registered rights on securities, nature of the registered restrictions for the address or for implementation of the rights on securities, the name of the state body which set such restriction, and also the other information provided by the law.
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