The legislation of Turkmenistan on the securities market is based on the Constitution of Turkmenistan and consists of the law of Turkmenistan "On securities market" and other regulatory legal acts of Turkmenistan regulating issues of issue and circulation of securities and investment activities.
The law of Turkmenistan "On securities market" regulates relations arising from the issue and circulation of securities in Turkmenistan, and is aimed at ensuring the effective functioning of the securities market and the development of the market economy of Turkmenistan.
Basic concepts of securities used in the law
Issue is the issue of securities and their placement by the Issuer to the first owners by concluding a civil transaction.
Issue securities – securities that are characterized simultaneously by the following features:
- fix the property rights which are subject to certification, assignment and realization with observance of the form and the order established by the law;
- with releases;
- have equal volume, and terms of realization of the rights within one issue regardless of time of their acquisition;
- issue prospectus – a document containing information about the Issuer, its financial condition, the volume of issued securities and the terms of their issue, as well as other information in accordance with this Law;
- securities – documents certifying the property rights fixed in them, the assignment and implementation of which is possible upon their presentation. Securities can be registered and bearer;
- securities market – a set of relations between individuals and legal entities related to the issue and circulation of securities;
- circulation of securities – conclusion of a civil transaction involving the transfer of ownership of securities;
- owner of a security – a person to whom the security belongs on the right of ownership or other proprietary right;
- documentary form of securities – a form of securities in which the property rights to securities are fixed on paper and the owner is established on the basis of the presentation of a properly executed security or security certificate, or in the case of depositing a certificate - on the basis of an entry on the depot account;
- non-documentary form of securities – a form of securities in which property rights to securities are recorded in the register of securities owners and the owner is established on the basis of an entry in the specified register, or in the case of depositing a security-on the basis of an entry on the depot account;
- certificate of securities – a document issued by the Issuer to the owner of securities in confirmation of his rights to the number of securities specified in the certificate.
In the law of Turkmenistan "On securities market" other concepts are used in the meanings defined by the civil and other legislation of Turkmenistan, as well as the relevant articles of this Law.
BT Legal Affairs Department