Article 3-1. Limited measures of influence and sanctions applied by the authorized body to subjects of the securities market (except for professional participants of the securities market and professional organizations) The Law on the Securities Market

Home / RLA / Article 3-1. Limited measures of influence and sanctions applied by the authorized body to subjects of the securities market (except for professional participants of the securities market and professional organizations) The Law on the Securities Market

Article 3-1. Limited measures of influence and sanctions applied by the authorized body to subjects of the securities market (except for professional participants of the securities market and professional organizations) The Law on the Securities Market

1. In cases of detection by the authorized body of violations of the legislation of the Republic of Kazakhstan on the securities market and on joint-stock companies, detection of illegal actions or omissions of a securities market entity or its officials (if any), as well as failure to comply with other requirements of the authorized body provided for by this Law and the Law of the Republic of Kazakhstan "On Joint-Stock Companies", the authorized body has the right apply one of the following limited measures of influence to the subject of the securities market:

1) give a binding written order;

2) issue a written warning;

3) draw up a written agreement;

4) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019). 2. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019).

3. A written instruction is an indication to a securities market entity to take mandatory corrective measures aimed at eliminating the identified violations and (or) causes, as well as the conditions that contributed to their commission within the prescribed period, and (or) the need to submit an action plan to eliminate the identified violations and (or) causes within the prescribed period., as well as the conditions that contributed to their commission (hereinafter referred to as the action plan).

The action plan, submitted within the time limit set by the written order, contains descriptions of violations, the reasons that led to their occurrence, a list of planned activities, the timing of their implementation, as well as responsible officials.

An appeal against a written order of the authorized body is carried out in accordance with the procedure established by the laws of the Republic of Kazakhstan. Appealing against the written order of the authorized body does not suspend its execution.

4. A written warning is a notification to the authorized body about the possibility of applying sanctions provided for in paragraph 10 of this article to a securities market entity if the authorized body detects repeated violations of the legislation of the Republic of Kazakhstan within six consecutive calendar months, similar to the violation for which this written warning was issued.

5. A written agreement is a written agreement concluded between the authorized body and a securities market entity on the need to eliminate identified violations and approve a list of measures to eliminate these violations, indicating the time frame for their elimination and (or) a list of restrictions that the securities market entity assumes until the identified violations are eliminated.

A written agreement must be signed by a securities market entity.

6. A securities market entity is obliged to notify the authorized body of the implementation of the measures specified in the written instruction and written agreement within the time limits provided for in these documents.

7. The procedure for applying limited measures of influence to a subject of the securities market is determined by the regulatory legal acts of the authorized body.

8. The authorized body has the right to apply sanctions to a securities market entity, regardless of the limited measures previously applied to it.

9. If it is not possible to eliminate the violation within the time limits set out in the action plan, written agreement or written instruction, for reasons beyond the control of the securities market entity, the deadline for the execution of the action plan, written agreement or written instruction may be extended by the authorized body in accordance with the procedure established by the regulatory legal act of the authorized body.

10. The authorized body has the right to apply sanctions to a securities market entity in the form of imposing an administrative penalty in accordance with the procedure provided for by the Code of the Republic of Kazakhstan on Administrative Offenses.

The Law of the Republic of Kazakhstan dated July 2, 2003 No. 461.

 This Law regulates public relations arising in the process of issuance, placement, circulation and repayment of equity securities and other financial instruments, the specifics of the creation and operation of securities market entities, defines the procedure for regulation, control and supervision of the securities market in order to ensure the safe, open and effective functioning of the securities market, protection of investors' rights. and holders of securities, fair competition of securities market participants.

President

Republic of Kazakhstan

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