OREANDA-NEWS. March 24, 2009. By the decision of Kazakhstan Stock Exchange (KASE) of February 26, 2009, KASE Board was charged with development of proposals on an issuer status possible criteria, in existence of which issued by him securities must be prohibited for use as repo transactions subjects. KASE proposals, developed in this task implementation, were approved by the KASE Council on March 5, 2009, reported the press-centre of KASE.

At this the KASE Council established that prohibitions that follow from mentioned proposals, will be given effect from April 1, 2009.

In compliance with the KASE Council on approval of mentioned proposals:

1) the prohibition to use securities as repo transactions subjects, executed by the "nego" and "automatic" methods, shall be introduced if:

these securities issuer untimely paid interest on its bonds, admitted to circulation on KASE; and/or

these securities issuer untimely paid dividends on its preferred shares, admitted to circulation on KASE; and/or

these securities admittance initiator did not submit to KASE financial statements of their issuer (including the interim) during three months after established by the listing agreement period; and/or

these securities admittance initiator did not submit to KASE significant information on these securities and/or their issuer (the information, which may influence on these securities cost) during ten days after established by the listing agreement period;

2) introduced prohibition to use securities as repo transactions subjects does not cover those repo transactions, deals of opening of which were made before such prohibition was given effect;

3) the prohibition to use securities as repo transactions subjects is annulled if these securities issuer and/or their admittance initiator eliminates a violation (considering below mentioned specifics);
                   
4) if prohibition to use securities as repo transactions subjects was introduced due to untimely payment of an interest on bonds, such prohibition can be annulled only after timely payment of an interest on bonds for the next coupon period;                                         

5) prohibitions to use securities as repo transactions subjects and annulment of such prohibitions is the authority of KASE Board.
                                                                      
In pursuance of the mentioned Exchange Council decision by the decision of KASE Board of March 19, 2009 were approved additions # 10 to KASE internal document "Specification of Automatic Repo Market".

It is supposed that the necessary amendments draft to KASE internal document "Rules of Repo Transactions Execution" will be considered by the Exchange Council on March 26, 2009.

References on this topic:
KASE news of March 19, 2009 "KASE amended Specification of Automatic Repo Market" - http://www.kase.kz/en/news/show/1069495