OREANDA-NEWS. March 09, 2010. The Exchange Council of Kazakhstan Stock Exchange (KASE) on January 28, 2010 approved new KASE internal document "Rules on admission of government securities to the Exchange" (the Rules), reported the press-centre of KASE.

The Rules were agreed with the Agency of the Republic of Kazakhstan on regulation of activities of the Regional Financial Center of Almaty (ARA RFCA) February 15, 2010, and with the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations (FSA) March 3, 2010 and made effective March 4, 2010.

The Rules were developed:

- after the KASE official list structure had changed in 2009;

- as Resolution No. 77 of the FSA Board "On requirements to issuers and securities admissible (admitted) to stock exchange, and to individual categories of the stock exchange" dated May 26, 2008 and Order No. 04.2- 09/119 of ARA RFCA Chairman "On setting requirements to issuers  suggested to listing or listed on the special trading floor of the Regional Financial Center of Almaty, and to such securities" dated May 8, 2008 set requirements to government securities for admission to and listing on KASE;

- to simplify procedures of admission of municipal securities to KASE.

The Rules now have a principally different order of admission of municipal securities to KASE. Now such securities shall be admitted by the Exchange Board after examination of documents specified in the Rules. The Rules do not provide for consideration of securities admission to KASE by the Listing commission and the Exchange Council as was the case earlier. Besides, there is no information disclosure requirement to a municipal agency during the listing term. However, the Rules require a market maker on the securities.

The Rules say Kazakhstan GS issued by the Kazakhstan Finance Ministry and the Kazakhstan National Bank shall automatically be admitted to the Exchange after the Exchange has received an issue registration notification. There is no market maker requirement in regard of such securities.

The Rules say municipal securities may be removed from KASE by virtue of the KASE Board decision in the following cases:

- no market maker for 60 calendar days;

- default on such municipal securities;

- suspension of circulation of the issue.

Foreign government securities may be removed from KASE by virtue of the KASE Board decision in the following cases:

- no market maker for 30 calendar days;

- downgrade of long-term credit rating in the issuing state currency, below the   level specified in the Rules;

- suspension of circulation of the issue.

Government securities and foreign government securities shall be automatically removed from KASE in case of circulation term expiry or securities cancellation.

Consider annulled and void KASE internal documents "Rules on admission of government securities to the Exchange" and "Rules on admission of foreign government securities to the Exchange" beginning March 4, 2010.

The Rules will be released at the KASE website at
http://www.kase.kz/en/page/normative_base in the nearest future.