22, 2005 Law Of The Syrian Securities And Exchange

Original Language Title: القانون 22 لعام 2005 قانون هيئة الأوراق والأسواق المالية السورية

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Read the untranslated law here: http://parliament.gov.sy/arabic/index.php?node=201&nid=16679&RID=-1&Last=10058&First=0&CurrentPage=23&Vld=-1&Mode=&Service=-1&Loc1=&Key1=&SDate=&EDate=&Year=&Country=&Num=&Dep=-1&

22, 2005 law on securities and the Syrian President on the Constitution and approved by the NPC at its meeting on 7-5-1426 and 13-6-2005 issue: article 1 the following definitions are intended to apply this law: the Commission: Securities and Exchange Commission.

Board: Board of Commissioners of the body.

Chairman: Chairman of the Board of Commissioners – Chief Executive Officer of the Commission.

Securities: negotiable stocks and negotiable debt instruments issued by the Government or corporations, and any dividend rights represent financial instruments contribute, or any other financial instruments the Council finds coverage.

Financial markets: organized markets for securities that can arise in the Syrian Arabic Republic in accordance with the provisions of this law.

Article 2-a Syrian Arabic Republic speaking regulatory entity called Syrian securities and financial markets, linked to the Prime Minister, enjoys legal personality and administrative and financial autonomy and is based in Damascus.

B-have all powers to carry out its tasks and functions, and to achieve their goals.

C-the Commission is prohibited from doing any business or activity for profit, or lend money or issue securities.

Article 3.-the Commission works on the following basic goals: 1. to organize and develop financial markets and activities thereto to ensure justice and efficiency and transparency and contribute to reducing the risks associated with securities transactions.

2. the protection of citizens and investors in securities of unfair or improper practices, or involving fraud, deceit, fraud or manipulation.

3. encourage savings and investment activity in the interest of the national economy.

B-the body responsible for issuing instructions and perform all functions to achieve its goals and to do driving: 1. organize and monitor full disclosure of information on securities.

2. the regulation and control of securities dealing.

3. the regulation and control of the work and activities of the entities under its supervision and control.

4. control of financial markets.

Article 4.-the Board of Commissioners consists of seven members, including four members including the Chairman of the Board and the time Vice President of the Board of experienced and competent to be natural persons Syrians.

-Chairman of the Board of Commissioners – ceo-one of the Commissioners Vice President-associate members-Associate Minister of finance, Minister of economy and trade members-Deputy Governor of the Central Bank of Syria — the other two Commissioners-named Board of Commissioners Decree specifying their wages and compensation.

C-named Secretary of the Board by resolution of the Board.

D-term of the Council is four years, renewable, renewable once for President and Vice President. Board member continues in this case in its membership after its completion until a successor is appointed.

Article 5-systems of the body by a decision of the Prime Minister upon proposal of the Board of Commissioners.

Article 6 — subject to the supervision and control of the body in accordance with the provisions of this law, regulations and instructions, and decisions whereby: 1. issuers of securities.

2. Services and consulting companies and licensed stockbrokers.

3. banks, investment firms and mutual fund licensed.

4. the financial markets.

5. accounting and auditing offices and companies.

Article 7-tasks of the Board: the Board shall carry out tasks stipulated in this law, as well as regulations, rules and instructions issued pursuant thereof, including: 1. the development of criteria and conditions for issuing securities.

2. policy that serves the purposes and functions of the body.

3. to approve the securitisation and the adoption of the prospectus related to this paper.

4. make proposals to government agencies in areas that help to develop and deepen the financial sector and to provide protection to investors and securities dealers.

5. adoption or licensing the practice of financial institutions operating in the market under the provisions of this law, restrict or suspend or discontinue or cancel these licenses to any person or any body subject to the control and supervision of the body that the Council deems appropriate.

6. suspension of financial market activity for no more than one day, and if necessary suspend market activity for more than one day by the President of the Council of Ministers upon proposal of the Board of Commissioners.

7. consent to insert or cancel or suspend any financial paper company or Syrian hand in any securities market outside the Syrian Arabic Republic.

8. prevent minus any securities in the financial markets or suspend the issuance, or traded if deemed necessary by the authority.

9. determine the allowances relating to the licensing of various entities subject to supervision and control body, renew these licenses. As well as determining the allowances relating to the adoption of the stock version releases.

10. proposal of fines imposed on offenders in accordance with the provisions of this law, issued by Decree.

11. the higher and lower end of the commissions charged by brokerage firms from their customers, and approve the fees and other commissions charged by financial markets.

12. adoption of accounting standards and audit standards and performance evaluation criteria that must be adhered to by the entities under its supervision and define the criteria and conditions that must be met by qualified auditors to audit entities under its supervision and control.

13. shape the contents of annual and periodic financial statements and reports and documents to be provided by issuers which introduces securities to the public or those listed her papers in financial markets.

14. identification of data and information to be included in the prospectus by companies and issuers of securities.

15. operational instructions, decisions and actions necessary to implement the provisions of this law.

16. proposal of the rules of procedure and other systems of the body.

17. set up surveillance and supervision regulations EFSA authority under the provisions of this law.

18. the preparation of legislation and regulations relating to securities.

19. appointment auditor licensed to check lists and financial accounts.

20. the preparation of the draft annual budget of the Commission and submitted to the Prime Minister for approval.

Article 8 each from becoming employed by the Commission or a member of its Board to submit a statement to the Commission which disclosed Syrian securities and non-Syrian listed in Syrian markets owned by or under the Act or even the disposal of a relative of the first degree and any change after that during seven days of learning of the change under penalty of cancellation of membership in the Council or losing his job in the body.

Article 9 prohibits members of Board of Commissioners and staff of the full body exercise any profession or other business, including to occupy a position or a job in the public or in any public or private institution, it is prohibited to all members of the Board of Commissioners to advise companies and private foundations.

Article 10-the President of the Council is the Chief Executive Officer of the port authority and for its responsible management and paymaster and does so with the following: 1. implementation of decisions taken by the Council.

2. signing alone or in conjunction with other reports and accounting data and financial statements and documents and correspondence for the Commission in accordance with the regulations.

3. the Commission's representation in court and in front of others.

Article 11-a-Board Vice President jobs and functions of the Chairman in his absence in a vacancy or legal status.

B-for the President the right to delegate some of his powers to another Member of the Council or any member of the body to be written and specific authorization.

Article 12.-the Council shall meet at the invitation of the Chairman or at the request of the majority of its members at least once a month. In order to legally attend the meeting as five of its members to be President or Vice President.

B-Board decisions by majority vote in case of equality of votes likely next President.

C-rules of procedure of the body determines the conditions and requirements of Council meeting, including the invitation to the meeting.

Article 13-a separate balancing authority shall so fiscal year begins on the first day of January and ends on the thirty-first of December.

B-general reserve body reserves equal to twice the total expenditure outlined in previous annual budget surplus-generated resources after deducting all current and capital expenditure needed by the body, that devolves overpayments from this reserve to the Finance Ministry.

C-If the Authority's budget deficit for any financial year, covering the general reserve and if not enough general reserve to cover the shortfall, the Ministry of finance to cover the shortfall.

Article 14.-the Commission's financial resources consist of the following: 1. allowances and commissions charged in accordance with the provisions of this law and the regulations issued thereunder.

2. fines imposed on offenders under the provisions of this law.

3. aid and donations and gifts received by the Commission subject to approval by the Prime Minister.

B-allowances and commissions charged by the Commission according to the following: 1. the registered versions and licensing issuing securities.

2. insert or accept securities in the financial markets.

3. circulation and transfer of securities.

4. adoption or grant license for financial services companies or investment companies.

5. any other services proposed by the Council and approved by the Prime Minister.

Article 15-raise the speaker reports annually to the Prime Minister on the work of the Commission and its financial position in the previous financial year, within three months from the end of the fiscal year.

Article 16-Agency may conduct any investigation or inspection or audit to determine whether any party or any person who has committed an offence or preparatory measures leading to commit breach of any of the provisions of this law and the regulations, directives and decisions. The Commission is entitled to check the documents and records of any entity, under the control and supervision body and obtain copies of any of them and inspecting them with or without notice.

Article 17 — is contrary to the provisions of this law, all of the following: 1. contravention of the regulations, instructions and decisions issued by the Commission in accordance with the provisions of this law.

2. lack of response from the person or body subject to the control of any person or entity subject to the control and supervision body to submit documents or documents required during periods and deadlines.

3. provide information or incorrect or misleading data in any of the documents or the documents submitted to the Commission.

4. Securities offered or sold based on data or information is incorrect or misleading, whether with regard to the rights and benefits granted by these papers or about the nature of the activity and financial condition of issuers of these securities.

5. use somebody ex officio or for internal information or confidential financial papers related to material or moral gains or divulge this information to return or eliminate non-relevant.

6. transmission and distribution of rumors or give information or incorrect or misleading statements about any securities for the purpose of affecting the price or reputation of the company for this paper.

7. believe the auditor or accountant financial data is incorrect or misleading information or violation of accounting standards and audit standards.

8. adoption of attractive financial analyses conflict with the company's financial status and true convictions of financial consulting and investment Office.

9. selling securities or disposed of without written authorization from the owner or without the existence of the Convention conferred.

10. not to distribute the prospectus approved by the Commission to an audience of investors.

11. contravention of instructions issued by the Commission on the nature of information and data to be included in the stock prospectus.

12. sale of securities without a prospectus approved by the Commission.

13. provide any financial services or investment or brokerage linked to securities without a license or prior approval of the Commission.

14. any deception or fraud or manipulation to actively release or trade or transfer of securities or any prohibited or misinformation regarding the activities licensed by the body.

Article 18 without prejudice to any harsher penalty prescribed under the laws and regulations in force: (a) is liable to imprisonment for a term not less than three months and not more than three years and a fine anyone who commits offences under paragraphs March, April, may, June, July, September, December, 13, 14 of article 17 of this law.

B-other irregularities, impose a fine against the perpetrators.

C-governing fines set forth in paragraphs a and b to fit body as compensation.

D-the members of the Board of Directors and the members of the Board of Directors and allied partners and the officers breaching legal person responsible for the violation unless proven not to teach them.

Article 19-undeclared information is seen by the members of the Council and Commission staff confidential legal culpable but justifiable reasons Council may disclose information which it considers necessary for the protection of investors.

Article 20 taking into account the laws and regulations in force and other public authorities shall provide the authority with the documents and information requested for the purposes of their duties in accordance with the provisions of this law.

Article 21-a-subject after accounts audited by the auditor approved by the Commission for the revision of the central organ of financial control which report to the Prime Minister.

B-the discharge of the Board of Commissioners after the adoption of the outcome of the budget and final accounts by the central organ of financial oversight during a period not exceeding two years from the expiration of membership.

Article 22.-the Board of Commissioners is Bill the Syrian stock market events in six months after naming the members of the Council.

B the Board of Commissioners shall issue regulations to implement the provisions of this law within six months after naming the members of the Council.

Article 23.-this law shall be published in the Official Gazette.

Damascus: 13.5-1426 19-6-2005.



President Bashar Al-Assad