OREANDA-NEWS. May 26, 2009. It was informed earlier:

1. the Exchange Council of Kazakhstan Stock Exchange (KASE) on March 26, 2009 approved additions No. 11 to KASE Internal document "Rules of Repo Transactions" (Rules), effective April 1, 2009;

2. the Exchange Council of Kazakhstan Stock Exchange (KASE) on April 23, 2009 approved changes and additions No. 12 effective on the first business day after of accord thereof with the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS).

The amendments were agreed on with AFS May 20, 2009. Accordingly, changes and additions No. 12 to Rules were made effective May 21, 2009.
                                                    
According to additions No. 11 Rules were complimented with two new items as follows:

"9-1. Securities of any denominations mentioned in sub-item 2) of item 2 of this      Specification, issued by one and the same issuer of these securities, then the Exchange Board by its decision (decisions) prohibits to use securities as repo transactions subjects, if:

1) these securities issuer untimely paid interest on its bonds, admitted to circulation on the Exchange; and/or

2) these securities issuer untimely paid dividends on its preferred shares, admitted to circulation on the Exchange; and/or

3) 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

4) 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 Rules period.

9-2. The prohibition, established in compliance with item 3-1 or 3-2 of this Specification, is cancelled by the Exchange Board decision when securities issuer or an admittance initiator eliminates violations that entailed such prohibition (considering the specific, set by the second paragraphс hereto).

If the prohibition to use securities as repo transactions subjects was set in compliance with item 3-2 of this Specification due to untimely payment of an interest on debt securities, such prohibition can be cancelled only after timely payment of the next in turn interest on these securities.".

In addition, the mentioned amendments have the editorial character.

According to changes and additions No. 12:

1) KASE discontinues using the word "re-purchase" in relation to repo transactions, considering that in the legislation of the Republic of Kazakhstan on the securities market and joint stock companies this word is used only in the definite context (see, for example, articles 26-28 of the Law of the Republic of Kazakhstan "On Joint Stock Companies");

2) the list of cases, when securities of any denominations, issued by one and the same securities issuer, are prohibited for use as repo transactions subjects, executed by the "nego" method, was supplemented by the case of default of debt securities face value payment, issued by this issuer and admitted to circulation on KASE, upon their circulation period termination.

Rules revised text is published on KASE website at http://kase.kz/files/normative_base/repo.pdf