Article 3. State regulation of the securities market The Law on the Securities Market

Home / RLA / Article 3. State regulation of the securities market The Law on the Securities Market

1. State regulation of the securities market is carried out by the authorized body for regulation, control and supervision of the financial market and financial organizations (hereinafter referred to as the authorized body).

2. Authorized body:

1) determines, in coordination with the Government of the Republic of Kazakhstan, priorities in the field of formation and development of the securities market;

2) implements the state policy on ensuring the functioning of the securities market in the Republic of Kazakhstan and the formation of the infrastructure of the national securities market, protecting the rights and interests of investors in the securities market;

IZPI's note! Subparagraph 3) is provided for in the wording of the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

3) adopt regulatory legal acts binding on the subjects of the securities market, other individuals and legal entities in the territory of the Republic of Kazakhstan in the field of regulation of the securities market and the activities of its subjects in accordance with the purpose and objectives provided for in paragraphs 1 and 2 of Article 2-1 of this Law and the legislation of the Republic of Kazakhstan. The list of subordinate regulatory legal acts is defined in the regulation on the authorized body.;

4) recognizes financial market assets as securities, determines the procedure for their registration, conditions and procedure for issue, circulation, repayment;

5) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 166-VI (effective ten calendar days after the date of its first official publication);

6) maintains the State Register of Equity Securities, the electronic register of the licensor and the register of permits for activities on the securities market;

7) suspends and resumes the placement and circulation of non-governmental equity securities, cancels issues of non-governmental equity securities;

7-1) defines the types and requirements for mass media that can be used to publish information about the activities of securities market entities that are subject to mandatory publication in accordance with this Law and other legislative acts of the Republic of Kazakhstan.;

7-2) discloses the information contained in the terms of issue of equity securities and in private bond memoranda, on approval of the report on the results of the placement of shares, on cancellation of the issue of shares in accordance with the procedure and on the terms determined by the regulatory legal act of the authorized body;

8) defines the rules of professional activity in the securities market, the requirements for the conditions and procedure for professional participants in the securities market transactions in securities and (or) derivative financial instruments, accounting for these transactions;

9) recognizes activities in the securities market as professional;

10) establishes the procedure for issuing, suspending and revoking licenses for carrying out types of professional activities in the securities market;

11) establishes the types of prudential standards and other mandatory norms and limits of licensees' financial stability, the procedure and methods for calculating their values, including proportionally depending on the risks assumed by the licensee.;

12) issues licenses for types of activities on the securities market, suspends, renews and revokes licenses;

13) (deleted - No. 72 dated 8.07.2005)

14) gives consent to the appointment (election) of senior staff:

the Central Depository;

a single operator;

applicants (licensees)

15) excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (effective from 01/01/2020); 16) (deleted - No. 72 dated 07/8/2005) 17) (deleted - No. 72 dated 07/8/2005) 18) (deleted - dated February 19, 2007 No. 230)

19) within the limits of its competence, it regulates, controls and supervises the activities of securities market entities;

19-1) apply to professional participants of the securities market the supervisory response measures established by Article 3-3 of this Law and (or) the sanctions established by Article 3-6 of this Law;

19-2) applies to subjects of the securities market (with the exception of professional participants in the securities market and professional organizations) limited measures of influence and (or) sanctions established by Article 3-1 of this Law.;

19-3) has the right to apply to the court in order to protect the rights and legitimate interests of securities holders;

19-4) sends mandatory instructions to the professional organization.;

20) (deleted - No. 230 dated February 19, 2007)

21) publishes information on issues of the securities market using information at its disposal about subjects of the securities market (with the exception of information constituting commercial and other legally protected secrets), as well as information on measures it has taken against subjects of the securities market;

22) interacts with foreign securities market regulatory authorities on the coordination of measures taken to regulate securities markets, prevent and suppress offenses in securities markets and other issues of mutual interest;

22-1) determines the conditions and procedure for suspending and resuming trading on the stock exchange;

22-2) defines the procedure and conditions for the provision of electronic services by nominee holders;

22-3) determines the procedure for the formation of a risk management and internal control system for professional participants in the securities market, including proportionately depending on the risks assumed by a professional participant in the securities market;

23) exercise other powers provided for by this Law, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

3. The National Bank of the Republic of Kazakhstan, in coordination with the authorized body, determines the list, forms of reporting, deadlines and procedure for its submission by the central securities depository, the unified operator, licensees and major participants of investment portfolio managers to the National Bank of the Republic of Kazakhstan. IZPI's note! Paragraph 3 is provided to be deleted by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

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

 This Law regulates public relations arising in the process of issuing, placing, circulating and redeeming equity securities and other financial instruments, the specifics of the creation and operation of securities market entities, defines the procedure for regulating, controlling and supervising the securities market in order to ensure the safe, open and effective functioning of the securities market, and the protection of investors' rights. and holders of securities, fair competition of securities market participants.

President

Republic of Kazakhstan

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