Central Asian Stock Exchange

An efficiently functioning Stock Exchange is the most dynamic and organized
entity of the market capital and plays an utmost role in the accumulation and use of
financial resources in a national economy. Entering the organized securities market is
one of the significant indicators of the proper corporate governance structure and
transparency in the company's activities.
Realizing the importance of a full-fledged securities market, on April 14 of 2015,
OJSC Central Asian Stock Exchange (further Stock Exchange) was established. To
carry out exchange activities, the Stock Exchange elaborated documents governing the
activities of the securities market and its infrastructure, that were approved by the
authorized government regulatory body.
Thus, in April of 2017, first trading activity occurred on the trading site of the
OJSC “Central Asian Stock Exchange” – the initial placement of 200,000 corporate
bonds with two-year duration of OJSC “Eskhata Bank”, with a fixed interest rate of 22%
per annum. The total number of sold bonds on the first day of trading amounted to more
than 14 million tajik somoni (tjs), or 72% of the total issue. Total number of investors
equaled 24, 87% of which were individuals. It is gratifying to note the presence of
foreign investors among them, which indicates the attractiveness of securities placed on
the local stock market.
Today, the Exchange listing exceeds 40 issuers, including bank institutions,
manufacturing companies and companies from services sector.
All transactions carried out on the Exchange's trading site are reflected on a
platform developed by one of the shareholders – GMEX Technology Ltd., a subsidiary of
Deutsche Borse Group, one of the largest exchange organizations in the world.
The Stock Exchange's trading software is in sync with the software of
professional participants of the securities market, including CJSC Central Depository,
which is a section in the infrastructure of the organized securities market, that keeps
records of rights and clearing of securities placed on the Stock Exchange. Since 2017,
CJSC Central Securities Depository is a member of the Association of National
Numbering Agencies (ANNA SC) and has the right to assign an International Securities
Identification Number (ISIN) to local securities, which allows foreign investors to identify
them on international platforms.
It should be noted that the initiatives proposed by the Stock Exchange for the
development of the local securities market are supported by the country's government.
In particular, in order to carry out activities that meet international standards and
practices, the Government has approved an Action Plan for the development of the
secondary securities market and stock exchange in the Republic of Tajikistan,
amendments were made to the Tax Code on preferential taxation of participants of the
securities market. Also, in order to attract more participants to the securities market, the
Stock Exchange developed and approved in the authorized government body the
Listing Rules for Small and Medium Enterprises and the Rules for Non-Listed Securities
providing facilitated listing requirements.

Our Stock Exchange in the efforts of broadening their activities closely interacts
with other markets. As a result, during 2015-2020 The Exchange signed Memorandums
of Cooperation with the Qatar Stock Exchange, NASDAQ OEMKS Armenia, and the
Tashkent Republican Stock Exchange.
Since 2016, Stock Exchange has been a member of the International Association
of Exchanges (IAB). The main task of the Exchange joining this organization was
integration with the exchanges of other countries. As part of cooperation with the IAB,
on February 8 of 2018, a Business Forum was held on the topic: CIS Exchanges:
Instruments, Services and New Financial Technologies.
In addition to that, Stock Exchange takes an active part in measures to develop
the local capital market, in particular, the Stock Exchange, being a member of the
interdepartmental Working Group on the Development of the Government Securities
Market (created on behalf of the Executive Office of the President of the Republic of
Tajikistan), took an active part in the development of rules for the issue and circulation
of government securities of the Republic of Tajikistan.
Cooperation in settlements for the placement and accounting of securities is carried out
through CJSC Central Depository. As noted above, in May of 2017, CJSC Central
Securities Depository was admitted as a partner of the Association of National
Numbering Agencies (ANNA SC). An agreement was signed on the right of the Central
Depository CJSC to assign an International Securities Identification Number (ISIN) to
local securities.
Furthermore, a deposit account (an account for placing and keeping securities)
was created in National Settlement Depository (Russian Federation). This account will
allow local professional participants to exchange securities listed on the Moscow Stock
Exchange and store them on the territory of the Republic of Tajikistan.