1. The Board of Directors can suspend or terminate the membership of a member that fail to perform its obligations to the Central Depository or other members as follows:

1.1. failure to perform obligations pursuant to these Rules and Regulations or other agreements with the Depository;

1.2. failure to perform obligations pursuant to other legislation related to its activities;

1.3. failure to perform settlement obligations;

1.4. denial to present information required by the Central Depository, delay or presenting false or incomplete information;

1.5. On the grounds of a proposal of Deputy Chairman of the Commission of Financial Supervision for suspension of a membership in case the investors’ interests are endangered. Act of establishment of administrative violation, penalty enactment issued or a decision for enforcement of compulsory administrative measures shall be attached to this proposal.

1.6. other cases that might endanger the safety of trading in securities;

2. For reasons stated in p.1 the Depository Board of Directors can suspend a membership for a period of up to 90 (ninety) days or for a longer period if meets the measure set by the Deputy Chairman of the Commission of Financial Supervision. The decision for membership suspension must contain the conditions of re-establishing the member’s rights. Within 10 days after expiration of the suspension term, the Depository Board of Directors will decide whether the membership rights can be re-established if the conditions for that exist. In case the suspension was imposed pursuant to a demand of the Deputy Chairman of the Commission of Financial Supervision, the member’s rights shall be re-established following submission of a statement of Deputy Chairman of the Commission of Financial Supervision for elimination of the found violations.

The Board of Directors can prolong the membership suspension term for a period of up to 90 (ninety) days, respectively to change the conditions of re-establishment of the membership in case of newly established or newly occurred requisites related to membership re-establishment. In case of claims filed toward the Central Depository AD or in case its reputation is endangered, the Board of Directors has the right to terminate the membership.

3. The Board of Directors of the Depository shall terminate the membership of a member that does not fulfill the conditions of membership re-establishment after expiration of the suspension term.

4. The Board of Directors of the Depository shall terminate the membership of an entity when the grounds for obtaining membership rights no longer exist.

5. In cases specified under p.1, the Board of Directors of the Depository can change its decision in regard to the statute of a member regarding its functions, including suspension or termination of one or more functions of the member.

6. Decisions of the Depository Board of Directors regarding membership suspension or termination shall be announced to the Commission of Financial Supervision and the sanctioned member in writing within a 3 (three) day period as of the date of taking the decision.

7. In case of accumulation of debit balance over the amount under Section I, p. 4 of Service Price Tariff of the Central Depository and non-payment of the liability in due time, the member shall be restricted from operations in the system until the amount due plus the advance payment of the service fee are paid. Suspension of a member from operations in the system means that the member is not allowed to make transfers from Register А into Register B, to fulfill orders for transfers under transactions concluded on unregulated market as well as to open client accounts, as of the day of exceeding the debit balance specified above. The transfers from personal to client account ordered earlier shall be completed under the regular procedure defined in these Rules and Regulations. Previously entered transactions concluded on a regulated market as well as corrections for these transactions shall be completed under the regular procedure as defined in these Rules and Regulations.

7.1. Member may be restricted from operations in the system also pursuant to a notification by the Commission of Financial Supervision for a measure imposed, whereas the range of restriction from operations is according to the measure of the Commission of Financial Supervision.

8. The investment intermediaries cannot have debit balance on their suspense accounts with the Depository at the end of each month and at the end of the financial year under review.

9. Non-compliant member is fully responsible for the risk, which he and his clients will have to bear from restrictions in operations.

10. The Depository shall notify the Stock Exchange for suspension or termination of a membership on the next day after the decision of the Depository Board of Directors and before the beginning of Stock Exchange trading session in a manner as agreed by both parties.

11. The Depository shall notify its members for the actions taken in regard to suspension or termination of a membership of a Depository member also through the weekly information bulletin of the Depository