The issue and circulation of securities of joint-stock companies is carried out in accordance with the law of Turkmenistan “On Joint-Stock Companies” and law of Turkmenistan “On securities market”.
For example, in the relevant paragraph in the law of Turkmenistan “On Joint-Stock Companies” the following is noted: “a Share is an investment security that secures the rights of its owner-shareholder to receive part of the profit of the issuing company in the form of dividends, participation in the management of the company and part of the property remaining after its liquidation”.
If an international agreement of Turkmenistan establishes other rules than those stipulated by the law of Turkmenistan "On securities market", the rules of the international agreement shall apply.
Scope of the law of Turkmenistan “On securities market”
The law of Turkmenistan “On securities market” applies to relations arising from the issue and circulation of the following securities on the securities market:
- shares;
- bonds;
- bill of exchange;
- bank transfer certificates of deposit;
- derivative securities traded on the securities market.
The Cabinet of Ministers of Turkmenistan may determine other types of securities to be issued and traded on the securities market of Turkmenistan.
Fundamentals of state regulation of the securities market
State regulation of the securities market is carried out on the basis of:
- establishing mandatory requirements for the activities of securities market participants;
- state registration of the issue (additional issues) of securities, as well as control over compliance by issuers with the obligations stipulated by them;
- licensing of professional activity in the securities market;
- certification of specialists of a professional securities market participant;
- creating a system for protecting the rights of securities owners and monitoring compliance with their rights by issuers and professional participants in the securities market;
- counteraction to the legalization of proceeds from crime and the financing of terrorism in the course of professional activities on the securities market;
- suppression of the activities of persons operating on the securities market without a corresponding license.
Bodies that carry out state regulation of the securities market
The bodies responsible for state regulation of the securities market are the Cabinet of Ministers of Turkmenistan and the Ministry of Finance and Economy of Turkmenistan.
Securities Market Participants
Participants in the securities market are issuers of securities, investors and professional participants in the securities market.
Securities issuer - a legal entity established in accordance with the legislation of Turkmenistan, issuing securities in accordance with the law of Turkmenistan “On securities market”, bearing on its behalf obligations to holders of securities to exercise the rights enshrined in these securities.
The issuer of government securities are the relevant state bodies of Turkmenistan.
Professional participants in the securities market, including an investment institution, are legal entities that have a license to carry out one or more types of professional activities in the securities market.
BT Legal Affairs Department
