Bank accounting and audit

Figure 1 Securities classification⁹

The resolution on issuance of the emissive securities shall contain the following:

- issuer full name, location (postal address) and e-mail address;

- the date of approval of the decision on issue of the emissive securities;

- the name of the issuer's management body that has approved the decision on the issuance of the securities;

- types and bonds of the emissive securities and the form of their issue;

- rights of the emissive securities owner;

- terms of placement of securities;

- number of emissive securities issued;

- the number of previously issued emissive securities;

- nominal value of the equity securities.

The issuer's obligation to fulfill the obligations of the pledge, the bank guarantee or any other way stipulated by the law shall include information on the person providing the supplement and information about the terms of the supply. In this case, the decision to issue bonds must also be signed by the Supplier.

After the state registration of the emissive securities issue, one copy of the resolution on issuance of the securities is kept in the securities market regulating state authority, one copy is issued to the issuer and one copy is submitted to the Central Securities Depository with enclosure of the documents confirming the issue of the emissive securities. Amendments and additions to the registered decision on issuance of securities, as well as recognition of this decision as null and void, are carried out in the order established by the legislation.

Corporate bonds comply with the following conditions:

- within the limits of the amount of own capital, confirmed by the issuer's conclusion on the date of the issuer's decision to issue such bonds;

- issuers having positive indicators of profitability, solvency, financial stability and liquidity, confirmed by conclusions of auditing organization in the last three years, as well as independent rating agencies in the order established by the legislation;

- issued by the issuers of funds belonging to investors, with the participation of commercial banks acting as payment agents.

Conditions for the option to issue shares may contain restrictions on their circulation.

If a joint-stock company is less than the number of shares that the option to issue, the company has no right to place such shares on shares.

The decision on granting the award or incentive payment to the members of the board of directors and supervisory board of the joint-stock company in the form of share-based options shall be taken by the general meeting of shareholders.

The number of shares of a certain type of voting rights may not exceed 5 per cent of this type of stock placed on the date of submission of documents for state registration of stock issue options. Opportunities related to the shares may be placed upon the charter capital of the joint-stock company after its full payment.

The securities market regulating state authority must make a state registration within thirty days from the date of receipt of the documents submitted for registration of the securities issue or make a motivated decision on refusal in the state registration of the emissive securities issue.

The issuer is responsible for the accuracy of the documents submitted for state registration of the emissive securities issue.

Emission securities issue:

- in case of revealing that the issuer violates the requirements of the legislation on the securities market during emission, and also in case of revealing false information in the information on emissive securities issue, they will be suspended until they are disposed of;

- non-elimination by the issuer of the breach of their issuance, as well as in case of placement of not less than 60% of securities at the time specified by the decision on the issue of the issue, except for cases where at least 30% of securities are placed in joint stock exchange trading;

- invalid in the presence of a relevant court decision.

Issue of government securities is carried out without issuance of the issue certificate and issue of government securities in accordance with the procedure established by the legislation.

Government securities can be issued short-term (up to one year), medium-term (for a period of one to five years) and long-term (for five years and more).

Issuance of deposit certificates is carried out in accordance with the procedure established by the Central Bank of the Republic of Uzbekistan, in consultation with the securities market regulator.

The number of shares of a certain type of voting rights may not exceed 5 per cent of this type of stock placed on the date of submission of documents for state registration of stock issue options.

Opportunities related to the shares may be placed upon the charter capital of the joint-stock company after its full payment. It should be noted that the activity of banks in our country is carried out in accordance with the international banking legislation and economic norms, which are based on the rules of the International Basel Committee under the supervision of the Bank. In particular, there are certain restrictions on banks' operations with securities, for example, the bank does not have more than 20% of the equity capital of enterprises other than financial institutions: the volume of non-government securities placement in the non-government securities market should not exceed 25% of the first-tier banks regulatory capital.

These limitations are aimed at reducing risks in banks' activities, diversification of bank assets, financial and liquidity stabilization, and ultimately protecting the property of bank depositors and creditors.

Typically, high-liquid first-tier securities are the government securities legally registered by the federal government (US Government Securities), with a commitment to repay the debt in the defined term.

The securities market regulating state authority must make a state registration within thirty days from the date of receipt of the documents submitted for registration of the securities issue or make a motivated decision on refusal in the state registration of the emissive securities issue.

The issuer is responsible for the accuracy of the documents submitted for state registration of the emissive securities issue.

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