Central Depository AD

  LEGAL FRAMEWORK

  Art.1. Legal framework

I. MEMBERSHIP IN THE DEPOSITORY

   Art. 2. Membership Agreement

   Art. 3. Membership requirements

   Art. 4. General financial requirements

   Art. 5. Technical requirements

   Art. 6. Operational requirements

   Art. 7. Arbitration

   Art. 8. Application for Membership

   Art. 9. Functions of the Depository Members

   Art. 10. Documents required from Applicant Members

   Art. 11. Required information

   Art. 12. Changes in the information of Members’ data

   Art. 13. Changes in the information introduced by the Central Depository

   Art. 14. Investigations

   Art. 15. Review of documents

   Art. 16. Spot reviews

   Art.17. Suspension from Performing Operations in the Depository system, Membership Suspension or Termination.

   Art. 18. Termination of Membership

   Art. 19. Actions upon Membership Suspension

   Art. 20. Voluntary Resign

   Art. 21. Re-establishment of Membership Rights after Membership Termination

   Art.22 Responsibility and Obligations of the Members of Central Depository AD

Ia. APPLICATION FOR AND MEMBERSHIP OF REGISTRATION AGENT AT CENTRAL DEPOSITORY AD

   Art. 22а Application for Registration Agent

   Art.22b Suspension or Termination of the Activities of Registration Agent.

II. REGISTRATION OF SECURITIES

   Art. 23. Registration Statement

   Art. 24. Agreement between Issuer and Central Depository

   Art. 25. Changes in registered issues

   Art. 26. Registration and Entering of Changes

   Art. 27. ISIN Coding

   Art. 28. Change of ISIN Code

   Art. 29. Consolidation of issues

   Art. 30. Re-registration of securities accounts

   Art. 31. Announcement of the changes

III. SECURITIES ACCOUNTS

   Art. 32. Deposit Accounts and Securities Accounts

   Art. 33. Accounts

   Art. 34. Principles of Accounts Administration

   Art. 35. Principles of Interpretation

IV.SETTLEMENT MANAGEMENT AND ORGANIZATION, TRANSACTION REGISTRATION

   Art. 36. Depository Function

   Art. 37. Delivery of Securities

   Art. 38. Special Provisions

   Art. 39. Actions upon Failure to Perform

   Art. 40. Consecutive Determination of Position

   Art. 41. Securities Settlement

   Art. 42. Registration of Transactions, Sequence of Settlement

   Art. 43. Forbidden Partial Delivery

   Art. 44. Settlement Suspension

   Art. 45. Notification

   Art. 46. Funds Replenishment

V. SECURITIES OPERATIONS

   Art. 47. Transfer to accounts

   Art. 48. Orders for Transfers

   Art. 49. Depository Functions on Financial Representation in regard to Corporate Activities of Issuers

   Art. 50. Depository Functions on Non-Financial Representation in regard to Corporate Activities of Issuers

   Art. 51. Shares Transformation

   Art. 52. Securities Transfer

VI. ISSUANCE OF DEPOSITORY RECEIPTS

   Art. 53. General Provisions

VII. REGISTERS

   Art. 54. Types of Registers

   Art 55. Register Entries

   Art 56. Acts of Registration

VIII. GUARANTEE FUND

   Art. 57. Guarantee Fund Administration

   Art. 58. Periodic Reports

   Art. 59. Purpose

   Art. 60. Contributions to Guarantee Fund

   Art. 61. Periodic Re-evaluation

   Art. 62. Administration and Expenses

   Art. 63. Replenishment of Deleted Fund

   Art. 64. Resignation from the Fund

   Art. 65. Guarantee Fund Liquidation

ІХ SANCTIONS

   Art.66 Sanctions in case of delay or failure to conclude securities transactions

Х. GENERAL PROVISIONS

   Art. 67. Definition of Procedures

   Art. 68. Cash Settlement Regulation

   Art. 69. Special Pledges Registration

   Art. 70. Information Bulletin

   Art. 71. Internal Control

XI. TRANSITIONAL AND CONCLUDING PROVISIONS

   Art.72. Specific Privatization Procedures for Privatization Processes

   Art. 73 Safekeeping of Materialized Securities

   Art. 74. Entry in Force

   Art. 75. The enclosures to these Rules and Regulations are indispensable part of these Rules and Regulations and shall be considered and interpreted in their mass.

ENCLOSURES TO RULES AND REGULATIONS OF CENTRAL DEPOSITORY AD

   Enclosure 1(Е01) –Service Price Tariff of Central Depository AD.

   Enclosure 2(E02) – Registration of securities issues and registration of changes in the register of the companies with dematerialized shares with Central Depository AD.

   Enclosure 4(E04) – Legitimation and Representation Procedure

   Enclosure 5(E05) – Registration Agent Activity

   Enclosure 6(E06) – Procedures of Ordering Transfer of Securities from Personal Account to Client Account with an Intermediary

   Enclosure 7(E07) – Processing of the Data from Investment Intermediaries for Transfer of Securities

   Enclosure 9(E09) – Fulfillment of Applications from Investment intermediary/Registration Agent for printing of depository receipts (DR)

   Enclosure 10(E10) – Procedures of Allocation of Depository Receipts

   Enclosure 11 (E11) – Technological Procedure for Communication with the Information System of the CD AD

   Enclosure 12 (E12) – Procedure for Levying of Distresses, Establishment of Pledges and Other Encumbrances on Securities Registered with CD AD

   Enclosure 13 (E13) – Rules on the Organization and Use of the Guarantee Settlement Fund

   Enclosure 14 (E14) – Procedure for Initial Public Offering of Securities via BSE-Sofia

   Enclosure 15(E15) – Procedure in Case of Repurchase of Shares

   Enclosure 16 (E16) – Procedure in the Case of Transformation of a Client/Issuer Registered within CD AD

   Enclosure 17(E17) – Registration and Settlement for Issues of Registered Compensatory Notes under the Ownership and Use of Agricultural Land Act and for Compensatory Instruments /CI/ under the Transactions with Compensatory Instruments Act /TCIA/

   Enclosure 18 (E18) – Registration and Transactions with Compensatory Instruments

   Enclosure 19 (E19) – Procedure for Authorization of the Investment Intermediaries in the Communication System of CD AD through Smart Cards and Digital Certificates, Encrypting and File Signing

   Enclosure 20(П20) – Registration of issues of rights and listing of shares for rights

   Enclosure 21(E21) – Identification of foreign persons holding securities with a trustee

   Enclosure 23(E23)- Completion of Transactions with Securities through Gross Settlement System in Real Time

   Enclosure 24(E24) – Effecting payments with dematerialized securities

   Enclosure 25(E25) – Regulating the payments between the investment intermediaries and their clients

   Enclosure 26(E26) – Registration of deals with compensatory instruments, concluded out of regulated market

   Enclosure 27(E27) – Procedure for performance of matured payments on bond issues and allocation of dividends on issues of shares

   Enclosure 28(E28) – Transfer of Business Enterprise

   Enclosures 29(E29) – Registration of issue of shares of mutual funds

   Enclosure 30(E30) – Registration and transaction of securities for which special terms and restrictions shall apply in regard to their transfer.