KASE Approves Rules on Admission of Govt Securities
OREANDA-NEWS. February 04, 2010. The Exchange Council of Kazakhstan Stock Exchange (KASE) approved new internal document of KASE "Rules on admission of government securities to Exchange official list" (the Rules), reported the press-centre of KASE.
The Rules are pending accord with the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations (FSA) and the Agency of the Republic of Kazakhstan on regulation of activities of the Regional Financial Center of Almaty (ARA RFCA) and will be made effective by the KASE Board decision after receipt of the accord from the agencies.
The Rules were developed:
- due to changes in the KASE official list made in 2009;
- in connection with setting by virtue of resolution of the FSA Board "On requirements to issuers and securities thereof, admissible (admitted) to circulation on the stock exchange, and to certain categories of the stock exchange list" dated May 26, 2008 No. 77 and order of ARA RFCA Chairman "On requirements to issuers, pending listing or listing on the special trading floor of the Regional Financial Center of Almaty, and to such securities" dated May 8, 2008 No. 04.2-09/119 requirements to government securities (GS) for admission and listing on the KASE official list;
- for purposes of simplification of municipal securities admission.
The Rules fundamentally change the order of admission of municipal securities. Securities will now be admitted by the Exchange board decision after consideration of the documents defined by the Rules. The Rules do not provide for consideration of securities listing by the Listing commission and Exchange Council, as was the case previously. The Rules do not provide for disclosure of current information by a municipal agency through the whole term of listing on the Exchange. However, the market maker requirement is still binding.
In accordance with the Rules, Kazakhstan GS, issued by the Kazakhstan Finance Ministry and the National Bank shall be admitted to the KASE automatically after receipt of issue registration notification by the Exchange. There is no express market maker requirement for these securities in the Rules.
According to the Rules municipal securities may be removed from KASE by virtue of KASE Board decision in the following cases:
- no market maker on securities for 60 calendar days;
- default announcement;
- circulation suspension.
Foreign government securities may be removed from KASE based on the KASE Board decision in the following cases:
- no market maker on securities for 30 calendar days;
- downgrade of long-term credit rating in the currency of foreign state that issued the securities, below the level specified in the Rules;
- circulation suspension.
National and foreign government securities shall automatically be delisting on expiry of circulation term or through annulment.
After introduction of the Rules, internal documents "Rules on admission of government securities on the exchange" and "Rules on admission of foreign government securities on the exchange".
The text of the Rules will be available at the AKSE website at http://www.kase.kz/files/normative_base/ after the accord with the FSA and ARA RFCA.
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