Cyprus Stock Exchange Laws of 1993-2007
The main sections of The Cyprus Securities and Cyprus Stock Exchange Laws of 1993-2007 are outlined below. For more information or explanations please contact the Cyprus Stock Exchange.
CYPRUS STOCK EXCHANGE,ESTABLISHMENT,OBJECTIVES,POWERS AND DUTIES
The prime objectives and competencies of the Stock Exchange and its related powers and duties are, among many others, to take all necessary and appropriate measures for the development of the securities market and to control and regulate transactions in the securities.
STATE SUPERVISION OF THE STOCK EXCHANGE
The overall supervision of the Stock Exchange is assigned to the Minister of Finance and is exercised by the Minister through the Securities Commission appointed for this purpose.
CYPRUS STOCK EXCHANGE COUNCIL, ESTABLISHMENT, POWERS AND DUTIES, COMPOSITION AND OTHER RELATED MATTERS
Sections Included : Establishment of Council – Council powers and duties – Council composition – Persons ineligible for appointment – Vacation of office – Council meetings and other procedures –Official seal of the Council – Remuneration of the Council members - General Manager, market official and other employees – Privileged stock exchange info rmation, Duty of confidentiality.
The Council supervises the operation of the stock exchange and has complete power over the management and administration of its assets in accordance with the provisions of this law and the provisions of the Stock Exchange Regulations.
STOCK EXCHANGE TRANSACTIONS AND STOCK EXCHANGE SECURITIES
Sections Included : Definition of the stock exchange transaction – Transactions on listed securities which may be executed outside the Exchange but are announced to it – Exemption from stamp duty – Period of limitation – Stock Exchange items.
Provisions for short selling - Transactions relevant with listed securities that are able to be fulfilled outside the stock exchange but must announced to it.
MEMBERS OF THE STOCK EXCHANGE AND PROFESSIONS RELATED TO STOCK EXCHANGE TRANSACTIONS
Sections Included : Stock Exchange members – Registration and registration procedure of members of the stock exchange – Brokers' removal from the stock exchange membership – Violation of brokers obligations.
Members of the stock exchange are Financial Services Firms and Credit Institutions registered under this Law. A broker who violates any of his obligations envisaged under this Law, or the Stock Exchange Regulations, commits an offence that is punishable according to Part VII and by the Stock Exchange Regulations, depending on the seriousness of the infringement and the endangerment of order operation of CSE that they act at infringement of Stock Exchange legislation or that at the exercise of their work demonstrate improper behaviour to their vocation, independent from any criminal or civil liability.
Sections Included : Council's disciplinary powers Disciplinary offenses – Permanent or temporary removal from Members list – Disciplinary procedure.
The Council has the power and authority to impose disciplinary penalties on Stock Exchange Members. The disciplinary procedure is defined by the Stock Exchange Regulations.
STOCK EXCHANGE REVENUES – FISCAL YEAR – ACCOUNTS – BUDGETS – BALANCE SHEETS – STATEMENTS
Sections Included : Stock Exchange revenues - Financial year, accounts, balance sheet and budget of the Stock Exchange
Accounts are audited by independent and recognized auditors and the General Auditor of the Republic are submitted to the Minister. The statement of Activities, the Balance Sheet and other documents are signed by the Chairman of the Council and the General Manager and, prior to their submission to the Minister, are audited by independent and recognized auditors.
JOINT COMPENSATION FUND SECURING STOCK EXCHANGE TRANSACTIONS
Sections Included : Compensation fund - Members of the compensation fund - Reserves of the compensation fund - Obligation for contribution to compensation fund - Purposes - Management - Supervision and Audit - Refund.
For the security of stock exchange transactions a special fund was established called 'joint compensation'. After the establishment of the Investor Compensation Fund of the Investment Firms, the CSE’s Joint Compensation Fund no longer operates.
ISSUERS WHOSE SECURITIES HAVE BEEN LISTED ON THE STOCK EXCHANGE AND THEIR RESULTANT OBLIGATIONS
Sections Included : Conditions for listing shares, debentures and UCITS – Continuous obligations for issuers – Conditions for suspension of trading – Delisting Securities – Council’s power to establish different markets.
The Law provides the minimum requirements for issuers who list their securities on the Stock Exchange and their continuous obligations. It provides for the conditions for suspension and delisting of securities.
FRAUDULENT ACTS REGARDING SECURITIES – FALSE DECLARATIONS – CRIMINAL LIABILITY FOR OFFENSES COMMITTED BY LEGAL PERSONS
Sections Included : False declarations – Criminal and civil liability for offenses committed by a legal person.
Whoever, while submitting information for the purposes of the Law or the Stock Exchange Regulations, makes a false statement, misleading or illusory as for its essential elements or withholds any essential information, commits offence that is punished with imprisonment up to two years or with pecuniary sentence up to five thousand pounds or with both sentences.
Cyprus Stock Exchange