OREANDA-NEWS. October 12, 2009. Kazakhstan Stock Exchange (KASE) Board approved changes # 14 to the KASE internal document "Rules of Repo Transactions Execution" (hereinafter - Rules), reported the press-centre of KASE.

Mentioned changes were made to Appendix 1 "Agreement on General terms of Repo Transactions Execution by "Nego" Method" to Rules (hereinafter – the Appendix) and clarify distribution of responsibilities which arise or can arise between participants of repo transactions, executed by the "nego" method.

The mentioned changes:

- introduce the concept "Bilateral agreement", which participants of "nego repo can sign between themselves that shall allow regulating parties relation when an issuer, whose securities are this repo transaction subject, undertakes corporate actions leading to occurrence of additional rights or responsibilities in repo transaction participants;

- was changed the order of transfer to a repo seller of the amount of paid income on securities, the order of income amount defining, and the order of interest payment for the period of delay on such income transfer; is stipulated the possibility of a repo seller to refuse the income receipt through selection of an appropriate option in the KASE trading system at signing a repo  opening deal; repo transaction participants are given possibility to negotiate the order of return and calculation of the mentioned income in the Bilateral agreement;

- was set forth that if at the moment of development of persons list, entitled to participate in securities issuer shareholders general meeting, which are the repo transaction subject, includes a repo buyer, then the right to participate and vote in the meeting belongs to a repo buyer, except as otherwise provided by the Bilateral agreement; for transfer of the right to participate and vote in shareholders general meeting in Bilateral agreement must be set forth that a repo buyer must provide to a repo seller a power of attorney for participation in shareholders general meeting and voting on a repo transaction subject;

- was set forth that if during a repo transaction an issuer of securities-this repo transaction subject, decides to implement other corporate actions, which lead or can lead to occurrence of additional rights and responsibilities in any repo transaction participant, then this situation regulation order is defined by repo transaction participants in the Bilateral agreement; if such regulation is impossible any repo transaction participant has the right to demand early execution of repo closing deals, the subject of which are this issuer securities.

Mentioned changes are submitted to the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS) and shall be given effect after their approval and implementation of appropriate technological changes in the exchange trading system.

KASE reminds that by its Exchange Council of May 28, 2009 were approved additions and changes # 13 to Rules agreed on by AFS on July 3, 2009 and which shall be given effect together with changes # 14 after implementation of appropriate technological changes in the exchange trading system.

Rules revised text will be published on KASE website at http://www.kase.kz/files/normative_base/repo.pdf in the nearest time.

On KASE website shall be available two versions of Rules: version effective before above listed amendments become effective, shall be published at http://www.kase.kz/files/normative_base/repo_old.pdf, and the version that shall be effective from this date.