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• 吉尔吉斯斯坦共和国自由经济区法（英）

  Document from CIS Legislation database © 2003-2025 SojuzPravoInform LLC LAW OF THE KYRGYZ REPUBLIC Aboutfree economic zones in the Kyrgyz Republic (as amended on 31-12-2024) Accepted by Jogorku Kenesh of the Kyrgyz Republic on December 11, 2013 This Law establishes the legal basis of activities of free economic zones, determines procedure for their creation, establishment and change of borders, functioning, and also liquidations of free economic zones in the Kyrgyz Republic. Chapter 1. General provisions Article 1. The terms and determinations used in this Law 1. In this Law the following terms and determinations are used: 1) the free economic zone (further - SEZ) - the part of the territory of the Kyrgyz Republic determined by the legislation of the Kyrgyz Republic on which the mode of implementation of economic activity by subjects of SEZ acts special (special legal); 2) special (special legal) the SEZ mode - set of the precepts of law setting the regulation mode more favorable than the generally established mode of implementation of economic activity; 3) general directorate of SEZ - the governing body of SEZ created in form of business of organization according to the procedure, established by this Law and other regulatory legal acts of the Kyrgyz Republic; 4) the subject of SEZ - the legal entity, and also the branches (representations) registered (re registered) by authorized state body and which underwent accounting registration in general directorate of SEZ; 5) the register of subjects of SEZ - the list containing the information about the legal entities who were registered state and accounting as the subject of the SEZ which lost or lost accounting registration as the subject of SEZ. 2. Institutes, terms and determinations civil, customs, tax and other industries of the legislation of the Kyrgyz Republic, used in this Law, are applied in that value in what they are used in these industries of the legislation. Article 2. Legislation on SEZ 1. The relations arising in connection with activities of SEZ and registration of legal entities as subjects of SEZ are regulated by this Law, the tax legislation, the legislation of the Kyrgyz Republic in the field of customs affairs, other regulatory legal acts of the Kyrgyz Republic, international treaties which participant is the Kyrgyz Republic. of January 11, 2014 No. 6 2025/2/19 16:35  Law of the Kyrgyz Republic "About free economic zones in the Kyrgyz Republic" https://cis-legislation.com/document.fwx?rgn=64966#  1/32. If the international treaty which came in the procedure established by the law into force which participant is the Kyrgyz Republic establishes other rules, than those which are stipulated by the legislation about SEZ are applied rules of the international treaty. Article 3. Purposes of creation of SEZ SEZ are created for the purpose of assistance to social and economic development of the Kyrgyz Republic and its certain regions (the accelerated development of regions), investment attraction, creation and development of productions, transport infrastructure, tourism and the sanatorium sphere and/or in other purposes determined in the law on SEZ. Article 4. SEZ types 1. In the Kyrgyz Republic SEZ of functional type which is determined by the purposes of creation of SEZ and nature of the activities planned in it, and also complex SEZ for realization of the purposes and implementation of activities inherent to the SEZ different functional types can be created. 2. In the Kyrgyz Republic to determine SEZ "Naryn" for the purposes of use of features of customs procedure of free customs zone, stipulated in Clause 455 Customs codes of the Eurasian Economic Union. Article 5. The activities prohibited in SEZ 1. In SEZ the activities prohibited by the legislation of the Kyrgyz Republic are not allowed. If other is not stipulated by the legislation the Kyrgyz Republic, the following types of activity are also prohibited subjects of SEZ in the territory of SEZ: 1) development of mineral deposits, their production; 2) production and realization of excise goods, except activities of the companies performing assembly, production and realization: - the tobacco products classified under the TNVED code 2402, assessed by excise and the VAT when importing to other territory of the Kyrgyz Republic by the subjects of SEZ registered till 2000; - the nicotinocontaining products, one-time electronic systems of delivery of nicotine with nicotinic liquid in one case, electronic cigarettes and similar individual electric evaporating devices (electronic systems of delivery of nicotine) classified under code of TNVED 2404 and 8543 of 40 000 0 C the mandatory requirement of restriction of export for the territory of the Kyrgyz Republic, waters, including the mineral and gassy, containing additives of sugar either another edulcorant, or vkuso-aromatic substances under the TNVED code 2202, assessed by excise and the VAT when importing to other territory of the Kyrgyz Republic by the subjects of SEZ conforming to the requirements imposed to arrangement of the territory of SEZ of the Kyrgyz Republic, approved by the Cabinet of Ministers of the Kyrgyz Republic and the confirmable act of authorized state body in the field of customs affairs, the subjects registered as subjects of SEZ irrespective of registration date as subjects of SEZ; 3) production, repair and realization of weapon and ammunition, production and realization of the explosives used in case of production of weapon; 2025/2/19 16:35  Law of the Kyrgyz Republic "About free economic zones in the Kyrgyz Republic" https://cis-legislation.com/document.fwx?rgn=64966#  2/34) production, conversion, storage, neutralization, realization of radioactive, nuclear and other dangerous materials; 5) import, storage, production and realization of drugs, psychotropic substances, except for their precursors used in the production purposes which import is performed according to the legislation of the Kyrgyz Republic. 2. The Cabinet of Ministers of the Kyrgyz Republic has the right to determine other types of activity which implementation is forbidden in the territory of SEZ. Article 6. Conditions ofthe organization and functioning of SEZ 1. SEZ are created in specially allocated territories which are provided with customs control and customs regulation of activities of subjects of SEZ according to requirements of the legislation of the Kyrgyz Republic. 2. Requirements to arrangement of the territory of SEZ, including requirements to barrier and equipment of perimeter of such territory system of video surveillance, are established by the Cabinet of Ministers of the Kyrgyz Republic. Requirements to providing the check mode in the territory of SEZ, including procedure for access for persons to such territory, are established by the Cabinet of Ministers of the Kyrgyz Republic. The authorized state body in the field of customs affairs confirms compliance of barrier or other conditions for customs control according to the legislation of the Kyrgyz Republic. 3. If other is not provided by this Article, in case of non-compliance with the conditions provided by part 2 of this Article the general tax regime is applied to subjects of SEZ. 2025/2/19 16:35  Law of the Kyrgyz Republic "About free economic zones in the Kyrgyz Republic" https://cis-legislation.com/document.fwx?rgn=64966#  3/3

  2026-10-11

• 吉尔吉斯斯坦共和国证券市场法（英）

  KYRGYZ REPUBLIC LAW ON SECURITIES MARKET Important Disclaimer This does not constitute an official translation and the translator and the EBRD cannot be held responsible for  any inaccuracy or omission in the translation. The text should be used for information purposes only and  appropriate legal advice should be sought as and when appropriate.Bishkek July 21, 1998, # 95  THE LAW OF THE KYRGYZ REPUBLIC  On securities market Chapter 1. General Provisions  Chapter 2. State Regulation of Securities Market  Chapter 3. Professional Securities Market Activities  Chapter 4. Stock Exchange  Chapter 5. Activities on Organization of Securities Trading in  the Over-the-Counter Market  Chapter 6. Self-Regulatory Organizations of Professional  Securities Market Participants  Chapter 7. Procedures for Issuance and Circulation of Securities  Chapter 8. Securities Issuance  Chapter 9. Circulation of Securities  Chapter 10. Informational Support on Securities Market  Chapter 11. Final Provisions  Chapter 1  General Provisions  Article 1. Subject Regulated by this Law  1. This Law regulates relationships initiated by issuance and circulation of issued securities, implementation of  activities of securities market participants and relationships occurring in the process of state regulation of securities  market.  2. Objects of securities market in the Kyrgyz Republic are as follows:  - issued securities and other documents acknowledged as such securities in compliance with Law or with the  procedures established by Law;  - derivative securities;  - foreign issuers' securities admitted to circulation in the Kyrgyz Republic by the National Commission, in  accordance with procedures established by legislation of the Kyrgyz Republic.  3. This Law shall not regulate issuance of the following types of securities:  - bonds of internal governmental and local debt issuances and other securities issued or guaranteed by the  Government, the National Bank of the Kyrgyz Republic, and local government bodies;  - bank certificates except for the certificates which meet the requirements to issued securities in compliance with  Article 2 of this Law;  - promissory notes;  - any payment liabilities of maturity period up to 1 year in documentary form which appears in the regular course of  business;  - checks.  Issuance of the securities listed in Item 3 of this Article shall be regulated on the basis of appropriate laws of the  Kyrgyz Republic.  Article 2. Basic Terms and Definitions Used in this Law  An issued security is any security which possesses all of the following features:  it provides a certain set of property and non-property title subject to certification, ceding and unconditional  realization, in accordance with the forms and procedures provided by this Law;  it is placed by issuances;  the scope and term of the rights are equal within one issuance, regardless of the time when the security was acquired.  Dematerialized securities - securities the owner of which is determined on the basis of a record in a security holder  registry, or, in case the securities have been deposited, on the basis of a record in the depo-account.  Materialized securities/securities in the paper form - securities the owner of which is determined on the basis of a  presented security certificate drawn up in compliance with procedures established by legislation, or, in case the security  has been deposited, on the basis of a record in the depo account. Issued Security certificate - a document given by an issuer certifying the set of rights for the number of securities  indicated in the certificate. A securities owner may, on the basis of such a certificate, require that the issuer fulfill its  obligations.  Derivative securities - any securities which certify the owner's right to sell or buy securities. Activities with these  securities in stock market or over-the-counter market shall be licensed. Peculiarity of derivative securities circulation is  determined by normative acts of the National Securities Commission.  Securities issue - set of securities of one issuer which gives the same rights to every owner of securities of a  particular type and have the same conditions of issuance (initial placement). All securities of the same issuance shall  have one and the same state registration number.  Placement of securities - alienation of securities by an issuer the first owner - be conducting transactions under the  terms of civil law.  Securities emission (issuance) - securities of an issuer that provide similar rights to their owners and that have  similar conditions of issuance (first issuance). All securities must have the same state registration number.  Issuance prospectus - a document issued by a securities issuer and containing information on securities issued.  Circulation of securities - performance of transactions with securities under the terms of civil law.  Securities owner - a person who owns securities on the basis of the property right.  Primary securities market - relationships formed in the process of issuance and placement of securities between a  professional stock market participant on the one side, and investors on the other side.  Secondary securities market - relationships formed in the process of circulation of securities issued previously  between stock market participants, except for relationships in the primary securities market.  Issuer - a legal entity assuming liabilities to security holders on his behalf.  Professional securities market participants - individuals and legal entities licensed to conduct one or more types of  professional securities market activities.  Broker - a professional securities market participant conducting transactions with securities upon the order, at the  expense, and in the interests of clients.  Dealer - a professional participant conducting transactions with securities on his behalf and at his own expense in  order to get profit from subsequent re-sale of securities or other transactions with these securities.  Underwriter - a professional securities market participant implementing placement of securities on behalf of the  issuer and in accordance with conditions established by the agreement.  Investor - an individual or a legal entity investing his/her resources in securities.  A good faith purchaser - a legal entity or an individual who has acquired securities and made payment for them and  at the time of purchase was not aware and could not be aware of the rights of any third parties to these securities, unless  opposite has been proved.  Securities depository - a specialized organization formed by professional SM participants for the purpose of keeping  and accounting securities and providing technical support on transactions with securities.  Clearing of transactions with securities - settlement of mutual requirements and liabilities of the parties involved in  such settlement resulted by transactions with securities.  Trust manager - a professional SM participant conducting trust management of securities.  Depositor - a person being a depository's client to who enjoys services provided by a depository on a contractual  basis services on transactions with securities owned by the depositor, or under his nominal holding.  Nominal holder - a person who is not a securities owner and who represents the owner's interests with respect to the  owner's securities and exercises the rights provided by such securities on his behalf and on the basis of the agreement.  Professional securities market participants may act as nominal security holders in accordance with legislation of the KR.  Listing - procedure for admission of securities to circulation on the stock exchange or in other organized securities  markets.  State registration number - a numeric (in letters or characters) code identifying a particular securities issuance.  Securities portfolio - a set of securities of different types in the ownership or under management of a securities  market participant.  Chapter 2  State Regulation of Securities Market  Article 3. State Body Regulating Securities Market  1. National Commission on Securities Market of the Kyrgyz Republic under the President of the Kyrgyz Republic  (hereinafter referred to as the National Commission) is the central body of state management which carries out a uniform  state policy in the securities market and implements regulation and control over the activities of securities issuers and  professional securities market participants. 2. The National Commission shall consist of the Chairman of the National Commission and members of the National  Commission.  The Chairman of the National Commission shall be appointed by the President of the Kyrgyz Republic.  In case it is impossible for the Chairman of the National Commission to implement his official duties, he may  delegate his powers to one of the National commission members.  3. Members of the National Commission shall be appointed by the President of the Kyrgyz Republic upon the  Chairman's of the National Commission recommendation.  4. The National Commission shall have the office insuring implementation of the Commission's activities. The  structure and number of the employees of the Office of the National Commission shall be approved by the President of  the Kyrgyz Republic.  5. For conducting independent examinations of draft decisions and normative documents related to performance of  authorities of the National Commission, a consulting and advisory body - the Expert Council shall be formed under the  National Commission which shall consist of representatives of state bodies and organizations whose activities are related  to regulation of financial and securities market, representatives of professional SM participants, their unions,  associations, and independent experts.  The National Commission shall independently approve activities of the Expert Council. Members of the Expert  Council shall be approved by the Chair of the National Commission. The Head of the Expert Council shall be appointed  by the Chair of the National Commission.  6. Expenses pertaining activities of the National Commission shall be paid on account of state budget and special  funds received as commission fees for securities registration, license issuance, and from other sources not prohibited by  legislation of the Kyrgyz Republic.  7. Members of the National Commission shall not have a right to implement commercial activities, except for  teaching and research.  Article 4. Functions of the National Commission  The National Commission shall:  - determine major areas of development of securities market and co-ordinate activities of state bodies on the issues of  SM regulation;  - draft and approve normative legal acts regulating the work of professional securities market participants and  issuers;  - approve standards of securities issuance and issuance prospectuses of the issuers, including foreign issuers making  the issuance in the Kyrgyz Republic, approve procedures for registration of the issuance and issuance prospectuses, and  register securities and issuance prospectuses of issuers of the Kyrgyz Republic and of foreign issuers and determine  requirements of admission of such securities for circulation in the securities market;  - develop and approve uniform standards and procedures for conducting of professional activities with securities,  purchase and sale and other transactions with securities, recording and accountability, maintenance of a shareholder  registry of a joint stock company, settlement and depository activities and keeping of securities;  - determine obligatory requirements and other terms for admission of securities to public placement and circulation;  - license various professional securities market activities, and revoke the licenses in question in the event of violation  of requirements of legislation of the Kyrgyz Republic;  - conduct state registration of securities issuance;  - manage regional subdivisions of the National Securities Commission;  - set norms and carry out surveillance over compliance of securities issuance volume with number of securities  placed and circulated;  - establish procedures, issue permissions for activities of self-regulatory organizations formed by professional  securities market participants (unions, associations), suspend or cancel the permissions in question in the event of  violation of legislation of the Kyrgyz Republic;  - develop recommendations on regulation of stock exchanges operation and activities;  - appoint inspectors for controlling professional stock market participants' activities;  - ensure creation of single information environment in the stock and financial markets of the Kyrgyz Republic and  formation of accessible database on the issuers, professional SM participants and SM operation, and establish  requirements and standards of information disclosure by the issuers and professional SM participants;  - assist in professional improvement of participants transactions with securities and organize research on securities  market development;  - set qualification requirements for persons and organizations implementing professional activities with securities;  - provide explanation on the issues of application of securities legislation of the Kyrgyz Republic, professional SM  activities, formation and operation of stock exchanges, and develop respective methodological recommendations; - maintains registry of issued, suspended and annuled licenses;  - implement other measures for state regulation of relationships formed in the securities market.  Article 5. Rights of the National Commission under the President  of the Kyrgyz Republic  The National Commission has a right to:  - qualify securities and determine their types in compliance with legislation of the Kyrgyz Republic;  - approve obligatory norms of sufficiency of internal resources and other indices minimizing risks for professional  securities market participants in conducting transactions with securities;  - in the event of violation of the securities legislation of the Kyrgyz Republic by professional securities market  participants, take a decision to suspend and revoke the license for conducting professional activities in securities market;  - deny, on the grounds provided by legislation of the Kyrgyz Republic, licensing a self-regulatory organization or a  stock exchange (a stock department of a commodity exchange), and revoke the license;  - suspend or cancel securities issuance in the event of violation of securities legislation of the Kyrgyz Republic by  the issuer in the course of issuance;  - conduct inspections and audit of financial operations of issuers and professional SM participants and appoint and  discharge inspectors controlling activities of issuers, professional securities market participants and self-regulatory  organizations of professional securities market participants;  - forward orders within the competence of the National Commission to issuers, professional SM participants, and  self-regulatory organizations, mandatory for execution, and require necessary documents from these organizations;  - forward materials to the law-enforcing agencies and appeal in court (court of arbitration) in relation to the matters  considered to be within the National Commission's jurisdiction, including appeals to the court (the court of arbitration)  on invalidating transactions with securities;  - conduct selective control over authenticity of information provided by issuers and professional securities market  participants and compliance of this information with the standards;  - adopt decisions on establishment and liquidation of regional subdivisions;  - set procedures of control over authenticity of information provided by issuers and professional securities market  participants implemented by regional subdivisions of the National Commission;  - charge to the budget the revenues derived from placement of the securities in case the issuance has been registered  with the state;  - request and obtain information on securities issuers and professional SM participants from state bodies;  - provide investigation and judicial bodies and representatives of the individuals, upon official request, with  information of the issuers' securities;  - impose economic and administrative sanctions for violation of securities legislation of the Kyrgyz Republic.  Article 6. State Registration of securities issuance  State registration of securities issuance shall be conducted by the National Commission, in compliance with  procedures established by this Law and other normative legal acts issued by the National Commission.  The National Commission shall maintain the General State Securities Registry in the Kyrgyz Republic.  The General State Securities Registry shall contain the following information:  name of the joint stock company;  legal and postal address;  state registration number of the securities issuance;  type of securities;  authorized fund;  nominal value of securities issued.  Issuance of securities not included in the General State Securities Registry shall be considered illegal.  Registration of securities with the National Commission may not be considered as the guarantee of the value of the  securities.  Article 7. Licensing Professional Securities Market Participants'  Activities  All professional securities market activities listed in Chapter 3 of this Law shall be implemented on the basis of a  special permission a license.  Procedures and conditions of license issuance shall be set by legislation of the Kyrgyz Republic. Chapter 3  Professional Securities Market Activities  Article 8. Professional Securities Market Participants  Professional securities market participants are legal entities and individuals licensed to conduct professional  activities in securities market.  Article 9. Forms of Professional Securities Market Activities  The following professional activities may be conducted in the securities market:  brokerage;  dealing;  trust management of securities;  clearing;  depository activities;  investment funds' activities;  investment advisors' activities;  maintenance of security holder registries;  organization of trading in the securities market.  Article 10. Brokerage  1. Brokerage is conducting transactions with securities under the terms of the civil law by the person acting as a trust  manager or a commission agent on the basis of a contract of agency or commission or, in case the contract does not  stipulate authorities of the trust manager or the commission agent to conduct such transactions.  2. A professional securities market participant performing brokerage shall be known as a broker. Only a legal entity,  being a commercial organization, may act as a broker.  3. Brokers may transfer the authority to conduct transactions to other brokers only. Such transfer shall be allowed if  it is specified in the contract of agency or commission or in the cases where the broker has been forced to do so by force majuere circumstances in order to protect his client's interests, with further notification of the client.  4. A broker shall fulfill his client's instructions in good faith and in compliance with the contract. Transactions  conducted upon the client's instructions shall in all cases take priority over the broker's own dealings, where a broker  combines brokerage and dealing.  5. In the event the broker has an interest which impedes him from fulfilling his client's instructions on the most  favorable conditions for the client, the broker shall immediately inform his client about such interest.  6. In case a broker acts as a commission agent, the contract of commission may provide an obligation to keep the  money intended to invest in securities or received as a result of sale of securities in the broker's account, and the broker's  right to use this money until it is returned to the client in accordance with the terms of the contract.  7. Should a conflict of interests between the broker and the client, of which the client was not informed before the  broker had received an appropriate instruction, harm the client's interests, the broker shall reimburse the client's losses at  his own expense in compliance with procedures established by civil legislation of the Kyrgyz Republic.  Article 11. Dealing  1. Dealing is conducting transactions on sales and purchase of securities on one's behalf and at one's own expense.  Such transactions shall be conducted by promulgation of sale and/or purchase prices of particular securities with  obligation to sell and/or buy such securities at prices declared by the person implementing these activities.  2. A professional securities market participant involved in dealing on his behalf and at his own expense with the  purpose of getting profit by subsequent re-sale or concluding a transaction with securities, shall be known as a dealer.  Only a legal entity which is a commercial organization may be a dealer.  3. In addition to prices, a dealer shall declare other relevant conditions of an agreement of sale and purchase of  securities, i.e. the minimum and maximum amount of securities sold and/or purchased, and the term of validity of prices  declared.  In the event the dealer has avoided concluding an agreement, a legal action may be brought aimed at enforcement of  conclusion of the agreement and/or reimbursement of the losses caused to the client. Article 12. Trust Management of Securities  1. Trust management of securities is recognized as management of:  securities;  money intended for investing in securities;  money and securities received in the process of trust management of securities conducted by a legal entity or an  individual entrepreneur on its/his behalf and for a financial reward during a specific period of time within which  securities owned by another person shall be managed by the trust manager on behalf of the owner or the third parties  specified by the owner.  2. Procedures for conducting trust management, rights and responsibilities of the trust manager shall be determined  by legislation of the Kyrgyz Republic and by agreements.  3. When conducting his activities, a trust manager shall indicate that he is acting in the capacity of a trust manager.  4. In case a conflict of interests has occurred between a trust manager and his client, or between different clients of  the same trust manager, which has not been made known to all parties in advance and has resulted in actions of the trust  manager's that detriment interests of the client, the trust manager shall reimburse losses at his own expense, in  accordance with procedures established by the civil legislation of the Kyrgyz Republic.  Article 13. Clearing  1. Clearing is determination of mutual liabilities (collection, reconciliation and correction of information on  transactions with securities and preparation of accounting documents) and their offsetting against delivery of securities  and payment of securities.  2. Organizations involved in clearing in connection with settlements on transactions with securities shall maintain  accounting documents prepared in the process of determining mutual liabilities on the basis of contracts with securities  market participants for whom payment are settled.  3. A clearing organization which conducts settlements on transactions with securities, shall form special funds to  minimize risks of default on transactions with securities. The minimum size of the special funds of clearing  organizations shall be established by the National Commission on Securities Market under the President of the Kyrgyz  upon agreement with the National Bank of the Kyrgyz Republic.  Article 14. Depository Activities  1. Depository activities is providing services on securities maintenance and/or accounting and/or transfer of the title  to securities.  2. A professional SM participant conducting depository activities shall be known as a depository. Only a legal entity  may be a depository.  3. A person using a depository's services for securities maintenance and/or accounting of the title to securities shall  be known as a depositor.  4. An agreement between a depository and a depositor regulating their relationships in the process of depository  activities shall be known as a depository agreement (an agreement on depo account). A depo agreement shall be  concluded in the written form. A depository shall approve the terms of depository activities which are an indivisible  component of the depo agreement.  5. Conclusion of a depo agreement shall not result in the transfer of a depositor's title to securities to a depository. A  depository may not dispose of a depositor's securities, manage such securities or undertake any actions with respect to  the securities on behalf of the depositor, except for those taken in accordance with the depositor's instructions in cases  stipulated by the depo agreement. A depository may not include a stipulation in the depo agreement that a depositor  renounces any of the rights incorporated by the securities. A depository is responsible under the terms of civil law for  safety of deposited securities.  6. Depositors' securities shall not be liable to be used in settlement of the depository's liabilities.  7. Responsibilities of the depository shall be as follows:  register the facts of imposing liabilities on depositor's securities;  maintain a separate depo account of the depositor with indication of the date and every transaction in the account;  transfer entire information on securities received by the depository from the issuer or securities registry holder to the  depositor.  8. A depository may be registered in the system of security holder registries or with another depository as a nominal  holder in compliance with a depo agreement.  9. A depository shall be responsible for default or inappropriate fulfillment of its responsibilities for accounting of  the title to securities, including the responsibility for completeness and accuracy of records in the depo accounts. 10. Under the terms of a depo agreement, a depository may receive in his own account the profit from securities kept  with the purpose of transferring it to depositors' accounts.  Article 15. Investment Funds' Activities  An investment fund shall be formed with the purpose of attracting money through issuance and public placement of  securities and subsequent diversified investment of the money in securities.  Establishment and operation of investment funds shall be regulated by legislation of the Kyrgyz Republic.  Article 16. Investment Advisors' Activities  The activities of an investment advisor shall be in the form of providing consulting services in the securities market.  Article 17. Activities on Maintaining a Security holder registry  1. Activities on maintaining a security holder registry are: collecting, recording, processing, maintaining, and  submitting information which build the system of the security holder registry.  2. Only legal entities may conduct activities on maintaining a security holder registry.  3. Individuals conducting activities on maintaining a security holder registry shall be known as registry holders  (registrars).  4. A registrar may not conduct transactions with securities of an issuer registered in the registry maintenance system.  A registrar has right to deny issuers consulting on registry maintenance and shareholder rights.  5. A security holder registry maintenance system is the set of data recorded in paper and/or in the electronic form  insuring identification of nominal holders and securities owners registered in the registry system and accounting of their  title to securities registered in their name; the system shall provide the opportunity to send information to the above  persons and form a securities owners' registry.  6. An issuer or a registrar maintaining the registry on the basis of the issuer's instruction may act as a registry holder.  In case the number of owners is above 50, and in case of additional issuance of placement of securities on the stock  exchange by the registry holder, the registry shall be maintained by the registrar independent of the issuer. The registrar  may delegate part of its functions on collecting information included in the registry maintenance system to other  registrars. Delegation of functions shall not release the registrar from responsibility to the issuer.  7. An issuer may conclude an agreement for maintaining a registry with one legal entity only. A registrar may  maintain registries of owners of securities of an unlimited number of issuers.  8. A registry holder may charge the parties a fee for transaction corresponding to the number of instructions on  transfer of securities; the amount of the fee shall be the same for any individual or a legal entity. A registry holder may  not charge the fee in the form of percentage of the volume of transaction.  9. Any person who has violated registry maintenance or reporting procedures (to the issuer, the registrar, the  depository, or the owner), may be prosecuted for reimbursement of the losses (including the missed profit) resulted from  the liability to exercise rights granted by the securities.  10. A registry holder shall, upon demand of the owner or of the person acting on behalf of the owner, or the nominal  securities holder, issue an extract from the registry on accounts of these persons within three business days. A securities  owner may not require inclusion of information which is not related to him in the extract from the registry, including  information on other security holders and the number of securities owned by them.  11. An extract from the registry is a document issued by the registry holder with indication of the owner of the  account, number of securities of each issuance in this account as of the time of issuance of the extract, facts of imposing  liabilities, and other information related to the securities in question.  12. The person who has issued an extract from the registry shall be responsible for completeness and authenticity of  information in the extract.  13. Rights and responsibilities of the registry holder and procedures for maintaining the registry shall be determined  by effective legislation and the agreement between the registry and the issuer.  14. In case a registry holder has been replaced, an issuer shall give notice of this in mass media or inform all  securities owners in writing.  15. In the event of termination of the agreement on registry maintenance between the issuer and the registrar, the  latter shall transfer to another registry holder indicated by the issuer information and documents comprising the registry  maintenance system, and the registry as of the date of termination of the agreement. The transfer shall take place on the  date of termination of the agreement.  16. Any extracts issued by the registry holder after the date of termination of the agreement with an issuer shall not  be valid. 17. A registry holder shall introduce changes to the registry system in compliance with this Law and other normative  acts of the Kyrgyz Republic.  18. An ungrounded denial to enter or avoidance from entering the record in the registry maintenance system shall  result in the liability provided by legislation of the Kyrgyz Republic.  Article 18. Activities on Organization of Trading in the  Securities Market  1. Organization of trading in the securities market shall be recognized as the provision of services directly facilitating  performance of transactions with securities between securities market participants under the terms of the civil law.  2. A professional securities market participant organizing trade in the securities market shall be known as an  organizer of trade in the securities market.  3. An organizer of trade in the securities market shall disclose the following information to any interested party:  procedures for admission of a professional SM participant to trades;  procedures for admission of securities for trades;  procedures for filing and registration of transactions;  procedures for conducting transactions;  procedures limiting price manipulation;  schedule of the services provided by the organizer of trade in the securities market;  regulations for introduction of changes and amendments to the items listed above;  list of securities admitted to trades.  4. Any interested party shall be provided with the following information on any transaction conducted in accordance  with procedures established by the organizer of trade in the securities market:  date and time at which the transaction was concluded;  name of securities which were the subject of the transaction;  state registration number of securities;  price of a security;  number of securities.  5. The organizer of the trade shall ensure openness and transparency of trades by informing the members about time  and place of trades, lists and quotation of securities admitted to circulation and the results of trading sessions.  Article 19. Limitations for Combining Professional Securities  Market Activities  Registry maintenance may not be combined with other forms of professional activities in the securities market.  Limitations on combination of various forms of activities and transactions with securities shall be determined by the  National Commission.  Chapter 4  Stock Exchange  Article 20. Stock Exchange  Only an organizer of trade in the securities market who does not combine trade organization activities of trading with  other activities on securities except for depository and clearing activities may be a stock exchange.  A stock exchange is a non-profit organization.  Stock exchange officials may not be founders and be part of other professional stock market participants - legal  entities, nor may they independently participate in the activities of the stock exchange as entrepreneurs.  Stock exchange and currency exchange departments recognized as such by legislation of the Kyrgyz Republic shall  be qualified as stock exchanges for the purpose of this Law and shall be governed by the requirements of this Law  presented to stock exchanges, with the exception of issues of establishment and organization structure.  Article 21. Members of a Stock Exchange  Any professional securities market participants implementing activities stipulated in Chapter 3 of this Law may be  members of the stock exchange. Procedures for joining, withdrawal, or expulsion from the stock exchange shall be  determined on the basis of the civil legislation of the Kyrgyz Republic.  Inequality in rights of stock exchange members is prohibited. Article 22. Basic Rights and Responsibilities of a Stock Exchange  The stock exchange shall independently establish the amount of the following charges and procedures for collection:  allocation of the fees received by the stock exchange members for participation in stock exchange transactions to the  stock exchange;  contributions, duties and other payments made by members of the stock exchange for services provided by the stock  exchange;  fines for violation of requirements of the stock exchange charter, trading rules of and other internal documents of the  stock exchange.  A stock exchange shall establish procedures for entering in the list the securities admitted to circulation and  procedures for listing and delisting.  The stock exchange shall ensure openness and transparency of trading by informing the members about time and  place of trades, lists and quotation of securities admitted to circulation and the results of trading sessions.  The stock exchange may not determine the amount of fees charged by its members for stock exchange transactions.  Securities trade procedures (addenda and changes to them) of the stock exchange shall be approved by the National  Commission.  Article 23. Procedures for Admission of Securities for Trading on  the Stock Exchange  The following shall be admitted to placement and circulation on the stock exchange:  securities which have passed procedures for registration of securities issuance stipulated by this Law and have been  included by the stock exchange in the quotation list of securities admitted to circulation on the stock exchange in  compliance with its internal documents;  securities which have not been included in the above list may be the subject of stock exchange transactions in  accordance with procedures stipulated by internal documents of the stock exchange;  other financial instruments in accordance with legislation of the Kyrgyz Republic.  Article 24. Settlement of Disputes Arising in Connection with  Securities Trading on the Stock Exchange  Disputes between members of the stock exchange or between members of the stock exchange and its clients shall be  settled by litigation according to legislation of the Kyrgyz Republic.  Chapter 5  Activities on Organization of Securities  Trading in the Over-the-Counter Market  Article 25. Trading System of the Over-the-Counter Market  1. Securities trading in the over-the-counter (OTC) market shall be implemented by a nonprofit organization founded  by a self-regulatory organization.  2. Organization of securities trading in the over-the-counter market is an exclusive activity which may not be  combined with other professional SM activities. In the event of inappropriate fulfillment of obligations assumed or  violation of trading procedures, the officials and participants of the OTC trading system of the over-the-counter market  shall cover the losses of the stock market participant in compliance with legislation.  3. Operation of the OTC trading implies that services on transactions with securities shall be provided on paper and  in the electronic form, within a particular territory, and may not be limited by transactions performed at one trading  floor.  4. All internal documents regulating operation of the OTC trading system shall be approved by the National  Commission.  Article 26. Participants in Trading Performed through the Trading  System of Over-the-Counter Securities Market  Professional securities market participants shall be participants in the OTC trading system. Article 27. Management of the Trading System of Over-the-Counter  Securities Market  Management bodies, functions, and powers of the OTC trading system and procedures for formation of and decision making shall be determined by legislation of the Kyrgyz Republic.  Article 28. Revenues of the Trading System of Over-the-Counter  Securities Market  Revenues of the trading system of over-the-counter (OTC) securities market shall be formed at the expense of:  contributions and fees of participants;  money received for informational, consulting and other services provided by the Charter and Rules of Securities  Trading in the OTC Securities Market;  other revenues which are not prohibited by the Charter and the Rules.  2. Revenues of the trading system shall be used for operation and development of the system.  Article 29. Transactions through the OTC Trading System of  Securities Market  1. Transactions through the OTC trading system of shall be conducted in accordance with the developed Rules of the  OTC trading system which regulate the performance of professional participants in conducting transactions with  securities.  2. The Rules shall contain the following provisions:  procedures for admission of securities to circulation in the OTC trading system;  registration and confirmation of transactions with securities;  settlement transactions facilitating securities trading;  settlement of disputes arising between participants of trades in the process of transactions with securities and  settlement;  list of violations to be fined, amount of fines and charging procedures;  procedures for submission of information on purchase and sale prices and on the volume of transactions with  securities;  amount of fees and other charges and payment procedures;  other requirements in compliance with normative documents of the National Commission.  3. The Rules of securities trading in the over-the-counter market trading system shall be approved by the National  Commission.  Article 30. Publishing Information on Transactions with Securities  The bulletin of securities of OTC periodically published by the trading system shall contain general information on  the number of transactions, quotation of securities circulating in the OTC market and other information determined by  the National Commission.  Article 31. Termination of Activities of the OTC Trading System  of Securities Market  1. The quotation system of over-the-counter securities market shall cease its activities:  upon the founders' decision;  on the basis of a decision taken by judicial bodies;  in the event of revocation by the National Commission of previously issued license for the right to trade in the  securities market.  2. The decision of the authorized agency on revoking the license issued previously may be appealed in court.  Chapter 6  Self-Regulatory Organizations of Professional  Securities Market Participants  Article 32. The Concept of a Self-Regulatory Organization of  Professional Securities Market Participants 1. A self-regulatory organization of professional securities market participants (hereinafter referred to as a self regulatory organization) is a non-commercial organization, a voluntary association of professional securities market  participants operating in compliance with this Law and other legislation of the Kyrgyz Republic.  2. A self-regulatory organization shall be founded by professional securities market participants in order to provide  conditions for professional securities market participants' activities, ensure observance of professional ethics in the  securities market, protect interests of securities owners and other clients of professional SM participants who are  members of the self-regulatory organization, and establish rules and standards for transactions with securities ensuring  efficiency of securities market operation.  Article 33. Rights of Self-Regulatory Organizations in Regulation  of the Securities Market  A self-regulatory organization has a right to:  develop, in compliance with the provisions of this Law, rules and standards for professional activities and  transactions with securities conducted by its members and implement control over observance of these rules and  standards;  implement control over observance of rules and standards for professional activities and transactions with securities  by its members;  in compliance with qualification requirements of the National Commission, develop educational programs and plans,  train officials and other employees of organizations conducting professional activities in the securities market, and  determine qualifications of the persons in question and issue qualification certificates to them.  Article 34. Requirements Presented to Self-Regulatory  Organizations  1. An organization founded by at least five professional securities market participants may apply to the National  Commission on Securities Market to obtain the status of a selfregulatory organization.  2. An organization established by professional SM participants shall obtain the status of a self-regulatory  organization on the basis of a permission issued by the National Commission on Securities Market.  3. The following documents shall be submitted to the National Commission to obtain the permission:  1) copies of documents on state registration of the self-regulatory organization;  2) Rules and by-laws of the self-regulatory organization approved by its members and mandatory for execution.  4. Rules and by-laws of the self-regulatory organization shall contain obligatory requirements established by the  National Commission.  5. A permission may be denied in case the documents submitted by the self-regulatory organization do not contain  requirements listed in this Article, or, at least one of the following requirements is provided by the documents:  1) possibility of discrimination of rights of clients using services of the organization members;  2) unjustified discrimination against members of the organization;  3) unjustified restrictions enjoining and withdrawal from the organization;  4) restrictions which hinder development of competition between professional securities market participants,  including regulation of rates of compensation and income from professional activities of the organization members;  5) regulation of issues being beyond competence of the self-regulatory organization or issues which do not  correspond with the goals of the self-regulatory organization;  6) mispresentation of information.  6. A permission may not be denied on any other grounds.  7. A permission of the self-regulatory organization may be revoked in case the National Commission has detected  violation of the securities legislation of the Kyrgyz Republic, requirements and standards established by the National  Commission, rules and regulations of the self-regulatory organization, or mispresentation of information.  8. A self-regulatory organization shall submit to the National Commission information on all amendments  introduced to the founding documents.  9. Rules and by-laws of the self-regulatory organization shall be approved by the National Commission.  10. A self-regulatory organization has right to conduct activities on organizing trades in the securities market upon  getting the appropriate license from the National Commission.  Chapter 7  Procedures for Issuance and Circulation of Securities Article 35. General Provisions  The form and procedures for certification, ceding and exercising rights incorporated by a security, shall be  determined by the Civil Code of the Kyrgyz Republic and this Law and specified in the Decision on securities issuance.  The issuer has a right to issue securities from the moment of state registration and assignment of the state registration  number by the National Commission. Any transactions with securities are prohibited before the securities issuance has  been registered by the State.  Securities may be issued in one of the following forms:  registered securities of materialized form (materialized registered securities);  registered securities of dematerialized form (dematerialized registered securities);  bearer materialized securities.  The form of securities chosen by the issuer shall be explicitly defined in the founding documents of the issuer and/or  in the Decision on securities issuance and the securities issuance prospectus.  In the event of materialized securities, the owners may be given a single certificate for all securities of the same type  purchased which shall indicate the total number, category and the nominal value of the securities purchased.  The owner or nominal holder of registered materialized securities may refuse from receiving a certificate.  The fact of issuance or refusal from receiving a certificate shall be recorded in the Registry.  One certificate may certify the right to one, several or all shares with the same state registration number assigned.  The total number of shares registered in all certificates of the issuer shall not exceed the number of shares indicated in  the Decision on securities issuance.  While making a decision on the issuance of materialized securities, the issuer may stipulate that certificates of  securities under issuance issued be handed to their owners (free from mandatory centralized custody requirement), or be  subject to mandatory centralized custody in depositories and may not be handed to all owners (subject to mandatory  centralized custody requirement).  Securities of joint-stock companies issued in both materialized and dematerialized form shall not be subject to  mandatory centralized custody requirement.  In case of materialized securities free from mandatory centralized custody requirement, the issuer may decide to  have the securities, kept in centralized manner only if all securities of the same issuance have been transferred to the  depository by the moment of the issuer's the decision.  Certificates of securities free from the centralized custody requirement may be transferred to the depository on the  basis of the depository agreement.  Registered securities may be issued both in materialized and dematerialized forms. The form of securities shall be  determined by the issuer. Securities under the same state registration number shall be issued in the same form. The form  of issuance may be changed upon decision of the issuer's management body which has made a decision on securities  issuance, with approval of all owners of the securities whose form is and upon registration of the above decision in the  appropriate state agency.  Any property and non-property rights certified by securities in materialized and dematerialized forms shall be  recognized as issued securities without consideration of their type, if conditions of their production and circulation  comply with requirements to issued securities defined in Article 2 of this Law.  Securities issued by foreign issuers shall be admitted to initial circulation or public offering in the securities market  of the KR after the issuance prospectus has been registered with the National Commission on Securities Market of the  KR.  Article 36. Basic Requisites of Shares  1. A share is an issued security which certifies its holder's (shareholder's) right to a portion of profit of the joint stock  company in the form of dividends, participation in management of a joint stock company, and for a portion of the  company's property upon its liquidation. Shares may be registered only, circulating freely or with a number of  limitations.  2. Shares may be common or preferred. The nominal value of shares shall be the same irrespective of the number of  issuances.  3. A share shall contain the following requisites:  - name of the security - "share" and the category of the share;  - issuer's firm name;  - buyer's firm name or personal name;  - place and date of issuance, state registration number, series and ordinal number of the share;  - samples of signatures (facsimiles) of the issuer's authorized persons and the rights provided by the share;  - nominal value; - amount of the joint stock company's authorized fund as of the date of share issuance;  - number of issued shares by type;  - terms of payment of dividends;  - basic shareholder rights.  4. All shares issued by joint stock companies shall be ensured by the property.  In the event of reorganization of the company, all liabilities on the shares issued shall be transferred to the legal  successors.  5. Bank loans shall be prohibited to use for purchasing shares.  Article 37. Basic Requisites of Bonds  1. A bond is an issued security certifying its holder's right to receive from the bond's issuer, within the terms  provided in the bond, its nominal value or other property equivalent. A bond also provides its holder with the right to  fixed interest on its nominal value incorporated in the bond or other property equivalent. Bonds may be bearer or  registered, circulating freely or with a limited circulation.  Bonds shall be issued in series consisting of similar securities which have the same conditions of issuance and  redemption.  2. Bonds may be registered only.  3. The nominal value of a bond shall not be limited.  4. Bonds shall be issued by legal entities.  Terms of bond issuance and dissemination shall be determined by this Law and other normative legal acts of the  Kyrgyz Republic.  5. A bond shall contain the following requisites:  - name of the security - "bond";  - bond issuer's firm name;  - buyer's firm name or name;  - nominal value;  - amount of interest, if any;  - terms and procedures for redemption and paying the interest;  - place and date of issuance and state registration number, series and ordinal number of the bond;  - facsimiles of the issuer's authorized persons.  Article 38. Decision on securities issuance  The Decision on securities issuance shall contain the following features:  full name of the issuer and its legal address;  date of the Decision on securities issuance;  name of the issuer's authorized body which made the Decision on securities issuance;  type of securities to be issued;  record of state registration of securities issuance and state registration number of securities;  owner's rights incorporated in a security;  securities placement procedures;  issuer's obligation to ensure the owner's rights provided the owner complies with the procedures for exercising these  rights established by legislation of the Kyrgyz Republic;  number of securities to be issued;  total number of securities-issued with a given state registration number and the nominal value;  form of securities (materialized, dematerialized, registered securities);  seal of the issuer and signature of the issuer's manager;  other requisites stipulated by this Law to be indicated for each type of securities issued.  For securities issued in the materialized form, the issuer is required to additionally submit a description (sample) of  the certificate.  A separate Decision on securities issuance shall be registered for each separate securities issuance.  The issuer may not change the registered Decision on securities issuance in the parts stipulating rights incorporated  in the security as established by the above Decision.  A Decision on securities issuance shall be made in two or three copies, each certified by the registration body. One  copy of the Decision shall be retained by the registration body, the second one shall be kept by the issuer, the third copy  shall be given to the registrar (if any.) If discrepancies shall be found in the texts of the three copies, the one kept by the registration body shall be considered the original text. Access of the owners to the original text of the registered Decision kept by the issuer or the registrar, may not be  restricted.  Article 39. Form of Certification of Rights Incorporated  by a Security  For materialized securities, the security, the certificate and the Decision on securities issuance shall be considered  the documents certifying the rights incorporated by a security.  For dematerialized securities, a Decision on securities issuance shall be considered the document certifying the rights  incorporated by a security.  A security incorporates property rights in accordance with legislation of the KR and to the extent they have been  established in the Decision on securities issuance.  A security certificate shall contain the following mandatory requisites:  full name of the issuer and his legal address;  type of security;  state registration number of securities;  procedures for securities placement;  issuer's obligation to ensure the owner's rights, provided the owner observes the requirements established by  legislation of the Kyrgyz Republic;  number of securities certified by the certificate;  total number of securities issued under the same state registration number;  indication of the type of securities issued: materialized, with mandatory centralized custody requirement, or  dematerialized, free from mandatory centralized custody requirement;  indication of the type of ownership: registered or bearer securities;  seal of the issuer; signatures of managers of the issuer and signature of the person issuing the certificate;  other requisites which may be required by this Law.  A mandatory requisite of a registered security certificate is the owner's name.  If discrepancies shall be detected between the text of the Decision on securities issuance and the data provided in the  security certificate, the owner may require that the rights incorporated by his security be exercised to the extent as  established in the certificate. In accordance with legislation of the KR, the issuer shall be responsible for any  discrepancy between the data provided in the certificate and the data provided in the Decision on securities issuance.  Securities issuance which has been denied registration in accordance with the requirements set in this Law, shall not  be subject to placement.  Chapter 8  Securities Issuance  Article 40. Issuance Procedure and its Stages  The issuance procedure, if not otherwise stipulated by legislation of the KR, shall include the following stages:  the Decision of the emitent to issue securities;  registration of the issuance;  for materialized form of issuance - publishing shares and/or security certificates;  placement of securities;  registration of the report on the results of securities issuance.  In the event of issuance, the Prospectus shall be registered when securities have been placed among more than 50  owners and when the total volume of the issuance exceeds 500 minimal monthly salaries established by legislation of the  Kyrgyz Republic.  The following stages are added for registration of the securities issuance Prospectus:  preparation of the Prospectus;  registration of the Prospectus;  disclosure of entire information contained in the Prospectus.  Issuance procedure for government and municipal securities and conditions of placement and circulation shall be  regulated by the laws of the KR.  It is prohibited to issue securities that are derivatives of those securities which have been denied registration.  Article 41. Registration of Securities Issuance The following documents shall be submitted by the issuer to the registration body:  application for registration;  the Decision on securities issuance;  Prospectus (if registration of the issuance is accompanied by registration of the Prospectus);  copies of founding documents (if the issuance has been undertaken to form a joint-stock company);  documents certifying the permission of the issuance by the authorized executive body (if such permission shall be  required by legislation of the KR).  The National Commission has a right to request other documents.  The issuer and its officials responsible for completeness and validity of information contained in the above  documents, (if such responsibility shall be established by the Charter and/or internal documents of the company) and for  performing their obligations in accordance with legislation of the KR.  In the process of registration, the issuance is assigned a state registration number. The procedures for assigning a  state registration number shall be established by the National Commission.  The National Commission shall register the issuance or make a substantiated decision for denial of registration  within 30 days from the date of receipt of the documents indicated in this Article.  Article 42. Reasons for Denial of Registration of Securities  Issuance  The following are reasons for denial of registration of an issuance:  violation of requirements of the securities legislation of the Kyrgyz Republic by the issuer, including the data in the  submitted documents which allows conclude that terms of issuance and circulation of securities contradict legislation of  the KR, and the terms of issuance are inconsistent with the securities legislation of the KR;  incompleteness and/or inconsistency of the submitted documents and information contained in these documents with  the requirements of this Law;  inclusion in the Prospectus or. in the Decision on securities issuance (other documents which serve as a basis for  registration of the securities issuance) of false or misleading information.  The decision on denial of registration may be appealed in court or in the Court of Arbitration.  Article 43. General Requirements to the Prospectus  The Prospectus shall contain the following:  information on the issuer;  information on the financial condition of the issuer. This information is not included in the Prospectus of a joint  stock company under formation, except for the cases when a legal entity has been transformed into a joint stock  company;  information on the forthcoming issuance.  Information on the issuer shall include:  a) full name and acronym of the issuer, or names of founders;  b) legal and postal address of the issuer;  c) number and date of the certificate of state registration as a legal entity;  d) information on the persons who own at least 5% of the authorized capital;  e) management structure of the issuer as indicated in its founding documents, including a list of all members of the  Board of Directors, management and administration performing the same functions as of the moment of passing the  Decision on securities issuance. The list of members shall include names (first name, patronymic name, last name) of  each member; position, both current and those held over the last five years; share in the issuer's authorized capital of  those who directly participate in the capital;  f) list of all legal entities of which the issuer owns more than 5% of the authorized capital;  g) list of all branches and representative offices of the issuer containing full names, date and place of registration,  legal address, and names (first, patronymic, last) of their managers;  h) affiliation of the issuer to industrial, banking or financial groups, holdings, associations, investment funds, or  public organizations, membership at commodity, currency, stock or other exchanges with indication of name and  location.  Information mentioned in items d) - g) of part two of this Article is not to be included in the Prospectus of an  issuance, if the latter has been undertaken in the process of founding a joint stock company, except for cases of  reorganization of a legal entity of a different organizational and legal form into a joint stock company.  Information on the financial condition of the issuer shall include: balance sheets proved by the resolution of the independent audit inspection. Income Statement of the issuer,  including the profit distribution statement in the standard form for the last three complete fiscal years, or for each  complete fiscal year from the moment of foundation (if less than three years);  information on the independent auditor: license number, term of validity, date of issuance, issuer, issuer's name,  legal and postal address;  balance sheet of the issuer as of the end of the quarter preceding the Decision on securities issuance;  report on the formation and utilization of the reserve fund, over the last three years or the period of time since  formation of the issuer;  information on the general areas of profit utilization over the last three fiscal years or over the period since formation  of the issuer;  information on financial resources allocated to capital investments, construction in progress and non-installed  equipment;  amount of liabilities and budget overdue as of the date of the Decision on securities issuance;  information on the authorized capital of the issuer: (amount of authorized capital, number and type of securities and  their nominal value, names of owners whose share in the authorized capital exceeds that set by anti-monopoly legislation  of the KR);  report on the previous issuance, including types of securities issued, number and date of state registration, name of  registration body, value of the issuance, number of shares issued, terms of income payment, first and last dates of  placement of the securities, and other rights of owners;  information on administrative and economic sanctions imposed on the issuer by state management bodies, court,  state arbitration, or third party court; date of the sanction, the body which has imposed the sanction, type of sanction,  amount and extent of execution as of the moment as of the moment of the Decision on securities issuance.  Information on the forthcoming issuance shall include:  information on securities to be issued (form and type, method of custody, registration of the title to securities), total  value of issuance, number of securities in the issuance);  information on the issuance (date of the Decision on securities issuance, name of the body who made the Decision  on securities issuance, restrictions for potential owners, place where securities can be purchased by potential owners; if  security certificates are kept and/or the title to securities is registered in the depository - name and legal address of the  depository);  first and last dates of placement of securities;  prices and procedures of payment for securities purchased;  professional participants in the securities market or their associations to be involved in the placement, as of the  moment of registration: names, legal addresses, functions performed in the placement;  income from securities (procedures of income distribution, methodology of determining the amount of income);  name of the registration body;  areas of utilization of the resources raised through securities issuance;  risk factors by group: environmental, social, technical, economic.  Article 44. Information on Securities Issuance To Be Disclosed  by Issuer  In case of open (public) offering which requires registration of Prospectus, the issuer shall ensure access to  information contained in the Prospectus and publish a note of disclosure in the press.  The issuer, as well as professional participants in the securities market involved in placement of securities, shall  ensure access for any potential owners to the disclosed information prior to purchase of securities.  If at least one issuance undertaken by the issuer has been accompanied by registration of the Prospectus, the issuer  shall disclose information on securities and financial and economic activities as follows:  quarterly report of the issuer;  notice on material facts pertaining to financial and economic activities of the issuer.  The issuer's quarterly report shall contain the following information:  codes assigned by the registration body to notes of disclosure of material facts pertaining to financial and economic  activities of the issuer;  data on financial and economic activities;  balance sheet, profit and loss statements as of the end of the reporting period;  facts which resulted in more than 20% increase in the net profit/ loss of the issuer during the reporting quarter,  compared to the previous quarter;  date on formation and utilization of the reserve and other specialized funds of the issuer. The quarterly report shall be made on the basis of results of each complete quarter within 30 calendar days following  the end of reporting period. The quarterly report shall be approved by the issuer's authorized body.  The following notes shall be classified as notes of disclosure of material facts pertaining to financial and economic  activities of the issuer:  changes in the list of members of management body (with the exception of the general meeting of a limited liability  company and the general shareholder meeting of a joint-stock company);  changes in the amount of share in the authorized capital of the issuer, its subsidiaries or dependent companies, held  by members of the issuer's management body; share of the members of the issuer's management body in authorized  capitals of other legal entities (if more than 20% of the above capital is owned);  changes in the list of shareholders of the issuer owing 20% or more in the issuer's authorized capital;  changes in the list of legal entities in which the issuer owns 20% or more of the authorized capital;  reorganization of the issuer, of its subsidiaries or dependent companies; income from securities accrued and/or paid;  redemption of securities;  facts of suspension or invalidation of the issuance;  registration of a person holding more than 25% of the issuer's shares of any type.  Notes of disclosure of material facts pertaining to financial and economic activities of the issuer shall be forwarded  by the issuer to the registration body to be disclosed in according with Article 51 of this Law, within 5 business days  following the date on which the fact requiring a disclose was registered.  Article 45. Terms of Placement of Securities  The issuer may start placement of securities only upon registration of the issuance. Proceeds received as a result of  placement shall be kept in the accumulation account. The issuer is prohibited to use the proceeds of the placement before  the end of subscription term and registration of the results of the issuance with the NSC.  The number of securities placed may not exceed the number indicated in the founding documents and in the  Prospectus of securities issuance.  The number of securities placed by the issuer may be less than the number of securities indicated in the Prospectus.  The actual number of securities placed shall be indicated in the issuance report submitted for registration. The National  Securities Commission shall establish a criterion for invalidation of the issuance Investor funds, in case of invalidated  issuance, shall be returned in accordance with procedures established by the National Securities Commission.  The issuer shall complete placement one year later from the first date of issuance, if different terms have not been  established by legislation of the KR.  It is prohibited to start placement of new shares earlier than two weeks after all potential owners have been ensured  access to information on the issuance to be disclosed in accordance with this Law. Information on the price of placement  may be disclosed on the first date of the placement.  No privileges shall be allowed during a public placement or circulation of securities to one potential owners over  others. This provision shall not be applied in the following cases:  if shareholders of a joint - stock company have been given a privilege in purchasing shares of the new issuance in the  number which is proportional to the that owned as of the moment the Decision on securities issuance);  if the issuer has set restrictions for purchasing securities by non-residents.  Article 46. Report on the Results of Securities Issuance  The issuer shall submit to the registration body a report on the results of the issuance within 30 days after the last  date of placement.  The report on the results of the issuance shall contain the following information:  1) first and last dates of placement;  2) actual price of placement (by type of securities of the same issuance);  3) number of securities placed;  4) total amount of receipts for securities distributed, including:  a) funds received in Som paid for placed securities;  b) funds received in foreign currencies in the national currency at the exchange rate of the National Bank of KR as of  the moment of payment);  c) amount of tangible and intangible assets paid for securities, in the national currency of the Kyrgyz Republic  (Som).  Additionally, the report on the results of the share issuance shall provide a list of stock owners the amount of which  shall be determined by the National Commission on Securities Market. The registration body shall consider the report on the results of the issuance within two weeks and if no violations  with respect to the issuance have been detected, the report shall be registered. The registration body shall be responsible  for the completeness of registered report.  Article 47. Bad Faith Issuance  Bad faith issuance and actions which violate issuance procedures established in this section and which serve as a  basis for denial of registration of the issuance by registration bodies, invalidation or suspension of the securities, shall  constitute the definition of the unfair issuance.  Registration of the issuance may be denied on the basis of reasons described in Article 42 of this Law.  The issuance may be suspended or invalidated if the following violations have been detected by the registration  body:  violation of requirements of legislation of the Kyrgyz Republic by the issuer, committed in the course of the  issuance;  detection of false information in the documents which serve as a basis for registration of the issuance.  If violations of the issuance procedure have been detected, the registration body may also suspend the issuance until  the violations have been rectified (within the term of placement.) The issuance may be resumed upon special permission  of the registration body.  If the issuance has been invalidated, all issued securities shall be returned to the issuer and the funds received from  the invalidated issuance shall be returned to the owners. The National Commission may apply to the court to have the  above funds returned to the owners.  All costs related to invalidation of the issuance and return of owners' funds shall be covered by the issuer.  If a violation has been committed in the form of the number of securities in circulation exceeding the number of  securities indicated in the Prospectus, the issuer shall ensure redemption and liquidate those securities issued in excess.  If, within two months, the issuer shall not ensure redemption and liquidation of securities issued in excess, the  National Commission may apply to the court to claim the funds unreasonably collected by the issuer.  Article 48. Specific Features of Share Issuance by Lending  Organizations  Funds received in the course of share issuance of banks and lending agencies in the process of issuance shall be  accumulated in a special account opened by the issuing bank.  The regime of the above accumulative account shall be established by the National Bank of the KR.  Chapter 9  Circulation of Securities  Article 49. Certification of Title to Securities  A title to a materialized securities shall be certified by the security itself (if kept by the owner), by a certificate (if  kept by the owner), or both by the certificate and a record in the depo account in the depository (if the certificate has  been passed to the depository for custody).  The title to dematerialized securities shall be certified in the Registry maintenance system by making a record in the  owner's personal account, or, if the title has been registered in the depository, in the owner's depo account maintained in  the depository.  Article 50. Transfer of Title to Securities and Exercising Rights  Incorporated by a Security  The title to dematerialized registered securities shall be transferred to the buyer in the following cases:  if the title to the securities has been registered by the entity performing depository functions - upon entering a cash in record in the buyer's depo account;  if the title to the securities has been registered in the Registry maintenance system - upon entering a cash-in record  entered in the buyer's personal account.  The title to a materialized registered security shall be considered transferred to the buyer:  if the buyer's title to the securities has been registered in the Registry maintenance system, upon entering a cash-in  record in the buyer s personal account; if the buyer s title to a materialized registered security has been registered by an entity performing depository  functions, and the security or the certificate have been kept in the depository - upon entering a cash-in record in the  buyer's depo-account.  Rights incorporated by the security shall be transferred to the buyer at the moment of transfer of the title to the  security. Transfer of rights incorporated by the registered security shall be accompanied by notification of the Registry  holder or the depository, or the nominal holder of the security.  The rights incorporated by a materialized registered security may be exercised upon presentation of the security or  its certificate to the issuer or his authorized representative. If the certificate is kept by the owner, the name of the owner  indicated in the certificate shall be the same as that indicated in the Registry.  If a materialized security or the certificate are kept in the depository, the rights incorporated by the security shall be  exercised on the basis of the security or the certificate upon instruction in the form of the depository agreement with the  owner. A list of owners of such securities shall be attached to the certificate. In that case, the issuer shall ensure rights  incorporated by bearer securities for the persons included in the above list of owners.  The issuer shall ensure rights incorporated in dematerialized registered securities for those persons indicated in the  Registry maintenance system.  If no information on the new owner data has been provided to the Registry holder of the given issuance, or to the  nominal holder of the security by the moment of closing the Registry to fulfill the issuer's obligations which make up a  security (voting rights, dividends, etc.) the issuer's fulfillment of obligations before the owner registered in the Registry  at the moment of closing, shall be considered appropriate. The buyer of the security shall be responsible for timely  notification of the issuer.  Authenticity of individual signatures in the documents certifying the transfer of the title to securities as well as of  securityincorporated rights, (except for cases stipulated in legislation of the KR), may be certified in the notary or by a  professional securities market participant.  Chapter 10  Informational Support on Securities Market  Article 51. Disclosure of Information  Disclosure of information is access to information for all interested parties, regardless of purposes for acquiring the  information in compliance with procedures, which ensures that it will be located and obtained.  Disclosed information in the securities market is information with respect to which action has been taken to ensure  its disclosure.  Generally accessible information in the securities market is information access which does not require special  privileges to access, or information which shall be disclosed in compliance with this Law.  The issuer of publicly placed securities shall disclose information related to his securities and financial and business  activities in the following forms:  report on the securities;  notification of material events and actions effecting the issuer's financial and business activities.  The report on the securities shall contain the following information:  1) information on the issuer:  list of persons from the issuer's management bodies, including the size of their share in the authorized capital of the  issuer and of the issuer's subsidiaries and dependent companies;  list of owners (shareholders) of the issuer who own 5% or more of the issuer's authorized capital;  list of legal entities in which the issuer owns 5% or more of the authorized capital;  list of branches and representative offices of the issuer;  information on reorganization of the issuer and of the issuer's subsidiaries and dependent companies;  2) information on financial and business activities of the issuer:  balance sheets, profit and losses statements for the last completed three financial years and as of the end of the  completed reporting year;  facts resulted in increase or decrease of value of the issuer's assets by more than 10% within the reporting year;  facts resulted in increase of the issuer's net profit or loss by more than 20% within the reporting year;  information on formation and utilization of the issuer's reserve fund and other special funds;  any transactions performed by the issuer involving sums of money or property of the value which exceeds 10% of  the issuer's assets as of the date of transaction;  information on the areas of investment which involved resources raised through securities issuance;  3) information on the issuer's securities:  types of securities issued by the issuer during the reporting year; information on the issuer's income form securities (for the reporting year);  4) other information.  The report shall be drawn up on the basis of the results of every completed year within 30 calendar days following  the end of the year. The annual report shall be approved by the issuer's authorized body and submitted to the National  Commission on Securities Market; it shall also be provided to securities owners upon their request.  Notification of material events and actions effecting the issuer's financial and business activities shall be as follows:  information on reorganization of the issuer, its subsidiaries and dependent companies;  information on facts which have caused a one-time increase or decrease of the value of the issuer's assets by more  than 10%, on facts which have caused a onetime increase of the issuer's net profit or loss by more than 10%, and on facts  of the issuer's one-time transactions involving sums of money or property of the value of 10% or more of the issuer's  assets as of the date of transaction;  information on the issuer's securities issuance and on accrued and/or paid income on the issuer's securities;  information on the person who was included in the issuer's registry of and who owns more than 5% of any type of  the issuer's securities;  information on the dates of registry closing, on the term set for the issuer to fulfill his obligations before the owners,  and on decisions of the general meetings;  information on the decision on securities issuance taken by the issuer's authorized body.  The issuer shall forward notifications of material events and actions effecting its financial and business activities to  the National Commission on Securities Market within five days following such events or actions. These notices shall  also be published within the same period of time in mass media published in the volume of circulation which covers  most of the issuer's securities owners.  The owner shall disclose information on his ownership of any issuer's securities in the following cases:  if the owner has acquired ownership of 5% or more of any type of the issuer's securities;  if the owner has increased his portion of ownership of any type of the issuer's securities to the extent which is  divisible by every 5% of more than 5% of this type of securities;  if the owner has reduced his portion of ownership of any type of the issuer's securities to the extent which is divisible  by every 5% of more than 5% of this type of securities.  The owner shall disclose information specified (including name or legal name, type and state registration number of  the securities, the issuer's legal name, and the number of securities owned by the owner within five days following  appropriate actions by informing the National Commission on Securities Market.  Professional securities market participants shall disclose information on their transactions with securities in the  following cases:  a professional securities market participant has, within one quarter, conducted transactions with one type of  securities of the same issuer, if the number of securities involved in these transactions equals at least 100% of the total  number of the securities in question;  a professional securities market participant has conducted one transaction with one type of securities of the same  issuer, if the number of securities involved in this transaction equals 5% and more of the total number of the securities in  question.  Professional securities market participants shall disclose this information (which includes legal name of professional  securities market participant, type and state registration number of the securities, the issuer's legal name, the price of one  security, and the number of securities involved in respective transactions) within five days following the end of the  corresponding quarter or a corresponding transaction, by informing the National Commission on Securities Market.  In case a professional securities market participants has either offered and/or declared sale or purchase prices of  securities, he shall disclose all of the generally accessible information in his possession which has been disclosed by the  issuer of these securities or indicate that he does not possess of such information.  Procedures for disclosure of information shall be established by the National Commission on Securities Market.  Professional securities market participants who provide services in promulgation of information on securities to be  disclosed shall follow procedures for disclosure of information on securities and rules established by the National  Commission on Securities Market. Persons who provide services in promulgation of information on securities to be  disclosed shall follow procedures for disclosure of the information on securities and rules established by the National  Commission on Securities Market.  Article 52. Insider Information  For the purpose of this Law, insider information shall be as any information on the issuer and securities issued which  is not generally accessible and which places persons who possess this information by their position, business  responsibilities, or a contract concluded with the issuer at an advantage compared to other securities market participants. Article 53. Persons in Possession of Insider Information  Persons in possession of insider information are as follows:  members of the management bodies of the issuer the professional securities market participant who has entered into  a contract with this issuer;  professional securities market participants;  auditors of the issuer or the professional market participant who has entered into a contract with this issuer;  government employees who have access to the information by their authority including the authority to inspect and  supervise.  Members of management bodies of issuers and of the legal entity which is a professional securities market  participant shall be persons permanently or temporarily occupying these positions in legal entities which involve  organizational or administrative responsibilities, and persons specially authorized to fulfill these responsibilities.  Article 54. Transactions Conducted with the Use of Insider  Information  Persons in possession of insider information may not use it with the purpose of conducting transactions or pass this  information to third parties.  Violators of this requirement shall be liable in compliance with legislation of the Kyrgyz Republic.  Article 55. Requirements to Advertising  Advertisement shall contain the advertiser's legal name (name). An advertiser who is a professional securities market  participant shall also include in advertisement information on activities conducted in the securities market in relation to  the advertisement.  The advertiser shall be prohibited:  to advertise inauthentic information on his activities and on types and characteristics of securities offered for sale or  purchase and for other types of transactions and conditions of such transactions, or any other information intended to  deceive or mislead securities owners and other securities market participants;  to indicate in the advertisement the anticipated rate of income on securities and forecast growth of the market price  of securities;  to use advertisement for the purpose of bad faith competition by indicating real or imaginary drawbacks of  professional securities market participants conducting similar activities, or issuers issuing similar securities.  In case the advertisement contains any element indicated in the part two of this Article, advertising of securities shall  be considered bad faith advertisement.  The following shall also be regarded as bad faith advertising: public announcement of guarantees or otherwise  drawing attention of potential owners to information on profitability of a security, its ensurance as compared other  securities or to other financial instruments, deliberate provision of false or inauthentic information which may or has  misled potential owners with respect to securities purchased.  The advertiser shall be liable for harm caused by bad faith advertising according to legislation of the Kyrgyz  Republic.  In case advertisement has been recognized as bad faith, contracts between the advertiser and the advertisement  distributor shall be declared null and void.  Article 56. Information Other than Securities Market Advertising  Advertisement in the securities market does not include generally accessible information on securities and issuers  indicated in Article 51 of this Law, or information presented to authorized agencies for the purposes of fulfillment of  their functions on regulating the securities market in compliance with legislation of the Kyrgyz Republic.  Information on securities issuance performed by an issuer and on applied and/or paid dividends shall be considered  advertising.  Article 57. Prohibition against Advertising Unregistered  Securities Issuance  Under the law of the Kyrgyz Republic, advertisement of securities is prohibited before the date of registration of the  issuance. Contracts for advertising unregistered securities issuance shall be considered null and void. Agencies which have registered securities issuance may take legal action with respect to consequences resulted from invalidation of these  contracts.  Article 58. Grounds for Termination of Securities Advertising  Contract  Recognition of securities issuance as invalid shall serve as a basis for termination of the securities advertisement  contract. A contract for advertising the invalidated issuance which shall be terminated as of the time of notification of  the advertiser by the registration agency which has declared the securities issuance invalid. The distributor may require  that the advertiser reimburse any losses resulted from termination of the advertising contract.  Article 59. Liability for Violation of Securities Legislation of  the Kyrgyz Republic  1. Violators of the provisions of this Law and other securities legislation acts of the Kyrgyz Republic shall be liable  in cases and in compliance with procedures provided by the civil, administrative, or criminal legislation of the Kyrgyz  Republic.  Damage caused as a result of violation of the securities legislation of the KR shall be subject to compensation in  accordance with procedures established by civil legislation of the KR.  2. Professional securities market participants may not manipulate prices in the securities market or force potential  investors to buy or sell securities by presenting deliberately false or distorted information on the securities offered, on  the issuer, or the prices, including advertised information. The above actions committed by a professional participant in  the securities market shall serve as a basis for suspension or invalidation of their license, as well as application of other  sanctions stipulated for members of selfregulatory organizations.  The fact of price manipulation shall be identified through court proceedings.  3. The following actions shall be brought by the National Commission against those issuers who have undertaken  bad faith issuance:  take measures for suspension of the placement resulted from bad faith placement;  publish a notice in mass media on bad faith issuance, and provide reasons for suspension of the placement resulted  form of the bad faith issuance;  send a notice to the issuer requiring rectification of violations, making changes in the Prospectus, terms of the  issuance, and setting the time-frame for rectification of the above violations;  send the results of inspections of bad faith issuance to the court, so that administrative measures be applied to the  officials of the issuer, in accordance with legislation of the KR;  send the results of inspections of bad faith issuance to the public prosecution agency if criminal features have been  detected in the actions of the issuer's officials;  issue a permission to resume placement if all violations in connection with an bad faith issuance have been rectified;  bring a legal action on invalidation of the bad faith issuance if it resulted in considerably misleading of the owners,  or if goals of the issuance contradicted principles of public order and morality.  4. Officials of the issuer which made the Decision on securities issuance which has not been registered, shall be  subject to administrative or criminal charges in accordance with legislation of the KR.  5. An issuance which has not been registered with the state shall be considered illegal and result in liability in  accordance with legislation of the KR.  6. Unlicensed professional activity in the securities market shall be considered invalid.  The following measures shall be taken by the National Securities Commission against unlicensed participants in the  securities market:  suspend unlicensed activities;  publish a notice in mass media on the fact of unlicensed activities conducted by the participant in the securities  market;  send a notice to the participant requiring that the participant obtain a license within the prescribed time-frame;  send the results of inspections of unlicensed activities to the court to apply measures for administrative or criminal  violation to officials of the professional SM participants, in accordance with legislation of the KR;  apply to the Court of Arbitration to charge all funds received by the participant as a result of conducting unlicensed  activities in the securities market to the government budget;  apply to the Court of Arbitration to enforce liquidation of the participant in the case a professional license was not  obtained within the prescribed time-frame.  7. If facts of bad faith advertising have been detected, the National Commission shall:  take measures for suspension of bad faith advertising; send a notice to the advertiser requiring termination the advertisement within the prescribed time-frame;  publish a notice in mass media on bad faith advertising and advertisers;  send the results of the bad faith advertisement to the court to apply administrative measures to officials of the  participant in the securities market practicing bad faith advertising, in accordance with legislation of the Kyrgyz  Republic;  suspend professional license of the participants practicing bad faith advertising;  bring a legal action for invalidation of the issuance if bad faith advertising has considerable misled owners of  securities.  8. Issuers, their officials and professional securities market participants shall have a right to appeal against the action  of the National Commission for prosecution of violations of securities legislation of the KR, in accordance with  procedures stipulated by legislation of the KR.  9. In cases stipulated by this Law and other securities acts of the KR, securities market participants shall ensure  property interests of investors by pledge, guarantee and by other instruments stipulated by civil legislation of the KR.  Article 60. Commercial Secret  1. Entities working in the securities market, their officials and employees are prohibited to disclose to third parties or  use information which was entrusted to them or which they had access to.  This prohibition shall apply to ex-clients of the above entities and shall be valid for entire information received from  these clients. Besides, this prohibition applies to all persons to whom these entities have provided any services.  2. The above prohibition does not include:  - disclosure of available information to employees of the National Commission on Securities Market under the  President of the KR, to auditors, while the latter are performing their professional functions; and in the cases stipulated  by Article 61 of this Law.  Article 61. Protection of Investor Interests  1. Information on transactions with securities, accounts, or number of securities owned by legal entities or  individuals as recorded in security owner registries, shall be disclosed to the owners and their legitimate representatives.  2. The above information on legal entities and individuals shall be disclosed:  to investigation bodies for cases under investigation, upon authorization of the public prosecution upon official  request;  to courts for cases under litigation on the basis of the decision of the court;  to representatives of the individual on the basis of a notarized power of attorney.  3. Information with respect to transactions with securities, accounts transactions, number of securities owned by  legal entities and individuals as recorded in security owner registries shall be disclosed to the tax inspectorate upon  official request for the purposes of tax investigations.  4. References pertaining to the above information, in the case of death of the owner, shall be disclosed to his heirs,  recognized in accordance with legislation of by state notaries (on heir cases) in processing, and to foreign consular  organizations.  Article 62. Requirements Resulted from Coming into Force of this  Law  Investment institutions conducting professional activities in the securities market on the basis of professional license  issued prior to coming into force of this Law, and stock exchanges shall bring their founding and internal documents in  compliance with this Law within one year as of the date of its official publication. The National Commission may  prolong the above term up to two years.  Chapter 11  Final Provisions  Article 63. Procedures for Coming into Force of this Law  1. This Law shall come into force as of the date of its official publication.  2. The following shall be considered invalid:  - The Law of the Kyrgyz Republic "On Securities and Stock Exchange" of December 21, 1991 ("Vedomosti of  Jogorku Kenesh of the Kyrgyz Republic, 1991, # 22, Article 696); - Section IV of the Law of the Kyrgyz Republic "On Making Amendments and Annexes to Certain Legislative Acts  of the Kyrgyz Republic" ("Vedomosti of Jogorku Kenesh of the Kyrgyz Republic, 1994, # 5, Article 165);  - The Law of the Kyrgyz Republic "On Making Amendments and Annexes to the Law of the Kyrgyz Republic "On  Securities and Stock Exchanges" of May 27,1994 ("Vedomosti of Jogorku Kenesh of the Kyrgyz Republic", 1994, # 7,  Article 226);  - The Law of the Kyrgyz Republic "On Making Amendments and Annexes to the Law of the Kyrgyz Republic "On  Securities and Stock Exchanges" of June 23, 1995 (Vedomosti of Jogorku Kenesh, 1995, # 7, Article 250);  - The Law of the Kyrgyz Republic "On Making Amendments and Annexes to the Law of the Kyrgyz Republic "On  Securities and Stock Exchange" of September 28 and October 10, 1995 ("Vedomosti of Jogorku Kenesh of the Kyrgyz  Republic, 1995, # 10, Article 399);  - The Law of the Kyrgyz Republic "On Making Amendments and Annexes to the Law of the Kyrgyz Republic "On  Securities and Stock Exchange" of March 22,1996 ("Vedomosti of Jogorku Kenesh of the Kyrgyz Republic, 1996, # 5,  Article 65).  3. The Government of the Kyrgyz Republic shall:  - submit to Jogorku Kenesh of the Kyrgyz Republic suggestions for bringing legislative acts of the Kyrgyz Republic  in compliance with this Law;  - bring decisions in compliance with the provisions of this Law.  President of the Kyrgyz Republic A.Akaev 

  2026-10-11

• 吉尔吉斯斯坦共和国预算法（英）

  Document from CIS Legislation database © 2003-2025 SojuzPravoInform LLC BUDGET CODE OF THE KYRGYZ REPUBLIC (as amended on 29-07-2024) Accepted by Jogorku Kenesh of the Kyrgyz Republic on April 6, 2016 This Code establishes bases of legal regulation of the relations arising in the sphere of management of public finances in the course of forming, consideration, approval, refining and execution republican, local budgets, budgets of Social fund of the Kyrgyz Republic (further - Social fund) and Fund of compulsory medical insurance under the Ministry of Health of the Kyrgyz Republic (further - Fund of compulsory medical insurance), establishes participants status of the budget process, determines the legal basis of responsibility for violation of the budget legislation. Section I. General provisions Chapter 1. Basic concepts and legal basis of the Budget code of the Kyrgyz Republic Article 1. Budgetlegal relationship Treat the budget legal relationship: 1) the relations arising in the course of forming of the income and implementation of budgets expenses, implementation of the state and municipal borrowings, regulation of the public and municipal debt; 2) the relations arising between participants of the budget process in the course of forming and consideration of budget statements, approval, refining and execution of budgets, control of their execution, accounting, creation, consideration and approval of budget reports. Article 2. The basic concepts and terms used in this Code 1. In this Code the following terms and concepts are applied: 1) the administrator of resources of the budget - state body or local government body, and also its structural, subordinated division performing one or set of functions on charge, collection, accounting and control of correctness of calculation, completeness and timeliness of payment of tax income, the customs payments levied in accordance with the established procedure by customs authorities of the Kyrgyz Republic according to the customs legislation of the Customs union, non tax income (resources) of budgets of the budget system of the Kyrgyz Republic; 2) assets - the property and non-property benefits and the rights having price cost, received in the state-owned, municipal property as a result of transactions of last periods; 3) the budget - form of education and expenditure of the money intended for financial provision of tasks and functions of the state and local self-government; 4) Ceased to be valid according to the Law of the Kyrgyz Republic of 18.01.2022 No. 2; of May 16, 2016 No. 59 2025/2/19 16:20  Budget code of the Kyrgyz Republic https://cis-legislation.com/document.fwx?rgn=85679#  1/75) the budget system - the system of the relations regulated by rules of law, arising during implementation of the budget process and also the set based on the economic relation and state system of the Kyrgyz Republic republican and local budgets, budgets of Social fund and Fund of compulsory medical insurance; 6) the budget estimate - the document determining amount of the income and expenses of budgetary institution according to budget classification with quarterly breakdown; 7) the budget obligation - obligation of the receiver of budgetary funds to provide accomplishment of certain tasks according to regulatory legal acts about the budget, the contract or agreement; 8) budgetary institution is state body, local government body or the organization created by state body or local government body for implementation of managerial, welfare, scientific and technical or other functions of non-commercial nature which activities are financed by means of the relevant budget; 9) budgetary appropriations - the money provided by the budget for the corresponding year for execution of the budget obligations according to its distribution; 10) budget credit - the money allocated from the republican budget and the local budget to receivers of budgetary funds on the terms of recoverability, urgency and the paid nature; 11) the budget process - the activities for forming and consideration of budget statements, approval, refining and execution of budgets, accounting and creation of the reporting, financial management and control regulated by the legislation of the Kyrgyz Republic; 12) the main manager of budgetary funds - the state body or local government body determined by regulatory legal act about the budget, given authority on distribution of budgetary appropriations between managers and receivers of budgetary funds; 13) the state guarantee - the commitment letter which the Cabinet of Ministers shall repay fully or partially before creditors the debt in case of non-execution or improper execution at the scheduled time of obligations by the borrower; 14) the government (municipal) securities - the securities emitted by authorized state body on forecasting and budget implementation (executive body of local self-government) on behalf of the Cabinet of Ministers (local government body); 15) public finances - set of the economic relations, education system and distributions of the cash funds necessary for the state for content of its bodies and accomplishment of functions inherent in it; 16) the public external debt - the component of public debt representing the amount of the mastered and outstanding state external loans or other debt obligations of the Kyrgyz Republic for certain date before nonresident creditors of the Kyrgyz Republic; 17) the state external loan - the relations according to the credit agreement or on other debt obligations in which the nonresident of the Kyrgyz Republic acts as the creditor and acts as the borrower the Cabinet of Ministers on behalf of the Kyrgyz Republic; 2025/2/19 16:20  Budget code of the Kyrgyz Republic https://cis-legislation.com/document.fwx?rgn=85679#  2/718) the public internal debt - the component of public debt representing the amount of the mastered and outstanding internal loans or other debt obligations of the Kyrgyz Republic for certain date before resident creditors of the Kyrgyz Republic; 19) the state internal loan - the relations according to the credit agreement or on other debt obligations in which the resident of the Kyrgyz Republic acts as the creditor and act as the borrower the Cabinet of Ministers on behalf of the Kyrgyz Republic and local government bodies according to the legislation of the Kyrgyz Republic; 20) public debt - the total amount of the mastered and outstanding internal and external public debt of the Kyrgyz Republic for certain date according to the credit agreement or on other debt obligations of the state; 21) grant - the free financial or technical assistance provided by donors to the state organizations of the Kyrgyz Republic, and also money (transfers), gratuitously and irretrievable provided by the republican budget to local budgets; 22) the deposit amounts - the means going into the interim order the main managers (managers, receivers) of budgetary funds and subjects in case of approach of the conditions provided by regulatory legal acts of the Kyrgyz Republic, to return to the subjects who deposited these funds or transfer to destination; 23) debt obligation - all obligation types on securities, credit agreements, credit agreements, arrangements and other obligations, in paper form and/or record in electronic form, determining the fact of borrowing of certain money or purchase of goods and/or services with the obligation to compensate the corresponding amounts or the cost of goods and/or services stipulated by agreements fully or partially; 24) the profitable potential of the local budget - assessment of the income of local budgets which can be gained proceeding from economic level developments, structures of economy, and also tax base; 25) loan - money, material values, the services provided on credit by internal or foreign creditors based on the credit agreement to residents of the Kyrgyz Republic under certain conditions; 26) borrowing - the process including procedures of decision making about need of attraction of borrowed funds; determination of procedure and conditions of attraction, use, repayment and servicing of loan; procedures of negotiations; obligation fulfillment guarantees; registration and signing of the relevant documents on loan; ratification of the loan agreement (in case of the state external borrowing); obtaining, use of means of loan; repayment and servicing of loan, including accounting procedures, control and the analysis of obligation fulfillment by the parties; 27) the protected Articles - the Articles of economic classification of expenses recommended for financing in first-priority procedure and which are not subject to reducing: the salary, fees in Social fund, acquisition of medicines and products of medical appointment, acquisition of food, social security benefits, benefits on the public assistance to the population, grant; 28) foreign creditors are the nonresidents of the Kyrgyz Republic providing means under agreements or other debt obligations; 2025/2/19 16:20  Budget code of the Kyrgyz Republic https://cis-legislation.com/document.fwx?rgn=85679#  3/729) target figures - limiting indicator of budgetary funds based on which forming of expenses of budgetary institutions is performed; 30) the credit agreement - the legal document which is the contract between the borrower and the creditor, concluded with the purpose of receipt of loan in the form of money, material values, services and containing conditions on their return, interest payment and other costs; 31) limit of the budget obligations - limit rate of budgetary funds for accomplishment by the receiver of the budget obligations; 32) the international treaty - the equitable and voluntary agreement of the Kyrgyz Republic with one or several states, the international organizations or with other subjects of international law concerning the rights and obligations in the area the foreign affairs specialist of the relations; 33) the nonresident - the legal entity or physical person having the permanent residence or the permanent location outside the Kyrgyz Republic registered or created according to the legislation of foreign states; 34) non-financial assets are the objects which are in use and maintaining state bodies and local government bodies, bringing them real or potential economic benefits during the certain period as a result of their use or storage; 35) official transfers - the non-paid, irrevocable receipts having voluntary nature, received from other state bodies (residents and nonresidents) or the international organizations; 36) the next fiscal year - the year following after the current fiscal year; 37) the receiver of budgetary funds - the budget or other institution having the right to budgetary funds based on the legislation of the Kyrgyz Republic, the decision of relevant organ or the agreement and responsible for their use and accounting; 38) planning period - two years following after the next fiscal year; 38-1) forecast of social and economic development of the Kyrgyz Republic - system of scientifically based ideas of the directions, criteria, the principles, the purposes and priorities of social and economic development of the Kyrgyz Republic for the forthcoming period with indication of the main predicted indicators and target reference points; 39) the manager of budgetary funds - the state body, local government body or organization which are under authority of the main manager of budgetary funds, receiving budgetary appropriations from the main manager of budgetary funds; 40) the sector of public administration is set of state bodies, bodies of the national social insurance and provision of pensions, local government bodies, their subordinated organizations, the organizations financed by means of the relevant budgets; 40-1) system of the state forecasting in the Kyrgyz Republic - the set of the interconnected elements consisting of the principles, documents, processes and participants of the state forecasting, providing development of the country on medium-term (from 3 to 5 years), long-term (for 10 years and more) the periods; 2025/2/19 16:20  Budget code of the Kyrgyz Republic https://cis-legislation.com/document.fwx?rgn=85679#  4/741) Council of the Cabinet of Ministers for fiscal and investment policy of the Kyrgyz Republic (further - Council of the Cabinet of Ministers) - the collegiate organ created by the Cabinet of Ministers for consideration of the Main directions of fiscal and investment policy of the Kyrgyz Republic, the budget statement of the budget system of the Kyrgyz Republic and their sequestration, acceptance of agreed decisions on the budget indicators of the main managers of budgetary funds and disagreements in case of their forming; 42) the current fiscal year - year in which budget implementation, creation and consideration of the budget statement for the next fiscal year and planning period is performed; 43) authorized state body on forecasting and budget implementation (further - authorized state body) - the central executive body authorized by the Cabinet of Ministers on implementation of development of state policy, coordination regulation and accomplishment of executive functions in the budget and financial spheres; 44) authorized state body on economic forecasting - the central executive body authorized by the Cabinet of Ministers on implementation of development and realization of single state policy in the field of economic development and the tax sphere; 45) approved budgets - the relevant budgets accepted by Jogorku Kenesh or local keneshes; 46) the specified budgets - the relevant budgets accepted by Jogorku Kenesh and local keneshes taking into account the made changes; 47) financial assets are the assets granting the right to their owners to receive one or several payments from other institutional units in accordance with the terms and the provisions provided in the contract (agreement); 48) fiscal policy is the tax and budget policy on management and regulation by public finances. 2. Other terms and concepts of the budget legislation of the Kyrgyz Republic which are not specified in this Article are used in the values determined in the relevant articles of this Code. Terms and concepts of the legislation of the Kyrgyz Republic of other industries used in this Code are applied in that value in what they are used in legislations of these industries if other is not provided by this Code. Article 3. Budgetlegislation ofthe Kyrgyz Republic 1. The budget legislation of the Kyrgyz Republic is based on the Constitution of the Kyrgyz Republic, consists of of this Code and the regulatory legal acts adopted according to it about the budget, other regulatory legal acts regulating the budget legal relationship. About the budget treat regulatory legal acts: - law on the republican budget; - laws on the budget of Social fund and Fund of compulsory medical insurance; - regulatory legal acts of local keneshes about local budgets. 2. In case of contradiction to regulations of the legislation of the Kyrgyz Republic priority in regulation of the budget legal relationship are regulations of this Code. 2025/2/19 16:20  Budget code of the Kyrgyz Republic https://cis-legislation.com/document.fwx?rgn=85679#  5/73. If the international treaty establishes other provisions which are not provided in this Code, provisions of the international treaty which participant is the Kyrgyz Republic are applied. Article 4. Action ofthe budgetlegislation 1. The regulatory legal acts governing the relations in the sphere of public finances act on all territory of the Kyrgyz Republic and extend to all participants of the budget process. 2. The regulatory legal acts leading to change of the income and (or) budgets expenses of the budget system of the Kyrgyz Republic, accepted after March 31 shall contain regulations on the introduction them in force not earlier than the January 1 following after the next fiscal year. 3. Allocation of budgetary appropriations on acceptance of new payment commitments or increase in budgeted expenses at execution of the existing payment commitments can be performed only since the beginning of the next financial year on condition of inclusion of the corresponding budgeted expenses in regulatory legal act about the budget or in the current financial year after entering of corresponding changes into regulatory legal act about the budget in the presence of appropriate sources of additional receipts in the budget and (or) when reducing budgeted expenses according to individual clauses of expenses of the budget. Article 5. Coordination of projects of regulatory legal acts 1. Projects of regulatory legal acts of the Kyrgyz Republic in which the questions concerning the budget and public finances are reflected are without fail approved with authorized state body. 2. Drafts of the laws on change of financial liabilities of the state; about increase in the expenses of the budget financed from the republican budget or about reducing its resources are accepted only with the consent of the Cabinet of Ministers. 3. Projects of regulatory legal acts on the questions concerning the budget of judicial system are subject to obligatory coordination with Judicial council of the Kyrgyz Republic (further - Judicial council). Section II. Budget system of the Kyrgyz Republic Chapter 2. General provisions Article 6. Principles ofthe budget system of the Kyrgyz Republic 1. The principle of unity means: 1) unity of the budget legislation of the Kyrgyz Republic, bases of the organization and functioning of the budget system of the Kyrgyz Republic, forms of budget documentation and reporting, Budget classification of the Kyrgyz Republic (further - Budget classification), sanctions for violation of the budget legislation of the Kyrgyz Republic; 2) single procedure for establishment, forming and execution of the income and implementation of payment commitments of budgets of the budget system of the Kyrgyz Republic, conducting financial accounting and creation of the reporting of budgets and budgetary institutions; 2025/2/19 16:20  Budget code of the Kyrgyz Republic https://cis-legislation.com/document.fwx?rgn=85679#  6/73) transfer of all resources of the budget and implementation of all expenses of the budget from the single treasurer account, except for transactions on execution of the budgets performed outside the Kyrgyz Republic. 2. The principle of completeness means reflection in budgets without fail and in full all income and expenses, stipulated by the legislation the Kyrgyz Republic. 3. The principle of effectiveness and efficiency means that forming and execution of budgets is performed proceeding from need of achievement of the purposes provided for the forthcoming period with attraction of the minimum amount of means or achievements of the maximum results with use of available budgetary funds. 4. The principle of priority means forming of budgets according to the reference points determined in the Main directions of fiscal policy and programs of social and economic development of the Kyrgyz Republic and its regions. 5. The principle of the sequence means carrying out by state bodies and local government bodies of single fiscal policy and observance of earlier made decisions in the sphere of the budget legal relationship. 6. The principle of independence of budgets means: 1) fixing to the relevant budgets of own sources of the income on permanent basis; 2025/2/19 16:20  Budget code of the Kyrgyz Republic https://cis-legislation.com/document.fwx?rgn=85679#  7/7

  2026-10-11