Arask Distribution Grid Corporation

PERFORMANCES AND ACTIVITIES

How to purchase shares on the Kazakhstan Stock Exchange (KASE)?

Individuals invest in issue-grade securities or other financial instruments on the stock market through services of professional securities market participants holding licenses for brokerage and dealing activity or investment portfolio management.

 

How are stock exchange transactions made?

The trading participants must apply for purchase / sale of a financial instrument. The transaction is concluded if two counter applications (one - for purchase, another - for sale) meet each other's conditions.

 

Who is broker?

The broker is a professional securities market participant, shall have a specialized license and make transactions with issue-grade securities and other financial instruments by order, at the expense and in the interests of the client (investor).

 

What is the Central Securities Depository (CSD)?

Central Securities Depository JSC is a specialized non-profit organization, the only one in the Republic of Kazakhstan, that performs depository activities, namely, activities related to the safekeeping and discount of securities.

 

What is the benefit of holding shares?

Income on shares is divided into two categories:

  1. dividend is the shareholder’s income from the shares owned by him/her, paid by the issuer, 
  2. the increase in the value is the difference between the purchase price and the selling price of a security.

 

How are the dividends paid?

The procedure for payment of dividends shall be governed by the Charter and the dividend policy of the issuer, as well as the Law of the Republic of Kazakhstan on Joint-Stock Companies (Articles 22, 23 and 24).

 

Are the dividends on shares subject to tax?

According to the Tax Code of Kazakhstan, dividends and interest on securities officially listed on a Kazakhstan stock exchange on the date of accrual of such dividends and interests, shall be excluded the taxable income of individuals and legal entities (other than income paid to a branch, representative office or permanent establishment of a non-resident).

 

What are the shareholder’s rights?

As specified in Article 14 of the Law of the Republic of Kazakhstan on Joint-Stock Companies the Company’s shareholder shall be entitled to:

  1. participate in managing the Company as set forth in the laws and the Charter of the Company;
  2. receive dividends;
  3. receive information on the Company’s business, in particular to examine the financial statements of the Company as prescribed by the General Meeting of Shareholders or the Company’s Charter;
  4. receive statements from the registrar of the Company or nominee holder confirming its ownership of the Company’s securities;
  5. propose to the General Meeting of Shareholders of the Company a candidate for election to the Board of Directors of the Company;
  6. contest in the courts the decisions adopted by the Company’s bodies;
  7. a part of the Company’s equity in case of its dissolution, etc.