Economic sanctions for violation of legislation on securities market abolished

President of Uzbekistan Islam Karimov signed a law “On introduction of changes and amendments, as well as abolishment of some legislative acts of Uzbekistan” on 7 October 2013.

Legislative Chamber of Oliy Majlis of Uzbekistan passed the law on 31 July 2013 and Senate approved it on 22 August 2013. The law came into force on 8 October 2013. The document envisages to replace economic sanctions against legal entities and individuals for violation of legislation on securities market.

The document abolished economic sanctions to participants of the security markets, envisaged in article 55 of the Law “On security market”.

At the same time, new fines were included to article 174-1 of the Code on administrative responsibility.

In particular, the violation on emission of securities, which resulted in loss of investor, will be fined from 7 to 10 sizes of minimal wage.

The violation of order on conducting and registering deal with the securities will be fined from 7 to 10 sizes of minimal wage.

The security issuers will be fined from 7 to 10 sizes of minimal wage for misleading investors and state supervision bodies through dissemination of deliberately false information.

If the issuers repeat above mention violations within a year, the fine will increase from 10 to 20 sizes of minimal wage.

The Code on administrative responsibility was included with article 179-4 (Violation of legislation on exchange activities), which envisages fine at the size of 5 to 10 sizes of minimal wage if the the securities market participants do not implement an order of the state body on elimination of the violation of the legislation.

The fine will increase from 10 to 20 sizes of minimal wage if the securities market participants repeat this offence within a year.