COALITION PROVISIONAL AUTHORITY ORDER NUMBER 74
INTERIM LAW ON SECURITIES MARKETS
Pursuant to my authority as Administrator of the Coalition Provisional Authority
(CPA), and under the laws and usages of war, and consistent with relevant U.N. Security Council resolutions, including Resolutions 1483 and 1511 (2003),
Having worked closely with the Governing Council to ensure that economic change as necessary to benefit the people of Iraq occurs in a manner acceptable to the people of Iraq,
Acknowledging the Governing Council’s desire to bring about significant change to the Iraqi economic system as necessary to improve the condition of the people of Iraq,
Determined to improve the conditions of life, technical skills, and opportunities for all Iraqis and to fight unemployment with its associated deleterious effect on public security,
Recognizing that some of the regulations concerning securities markets under the prior regime are not well-suited to a modern, efficient, transparent and independently regulated securities market,
Noting that Iraqi entrepreneurs and businesses will benefit from the revival of Iraq’s capital markets,
Recognizing the CPA’s obligation to provide for the effective administration of Iraq, to ensure the well being of the Iraqi people and to enable the social and economic functions and normal transactions of every day life,
Acting in a manner consistent with the Report of the Secretary General to the Security Council of July 17, 2003, concerning the need for the development of Iraq and its transition from a non-transparent centrally planned economy to a free market economy characterized by sustainable economic growth through the establishment of a dynamic private sector, and the need to enact institutional and legal reforms to give it effect,
Having worked closely with the Governing Council, international organizations, relevant Ministries and Iraqi business people in developing policies that will organize and facilitate fair, efficient, and orderly securities transactions in Iraq,
I hereby promulgate the following:
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Section 1
Definitions
For the purposes of this law, the following terms shall be defined as follows:
1) “Commission” means the interim Iraq Securities and Exchange Commission.
2) “Commissioners” mean the members of the Iraq Securities and Exchange
Commission.
3) “Exchange” means the Iraq Stock Exchange (“ISX”) or such other exchange as the Commission, pursuant to its rules, may license under this Law.
4) “General Assembly” means the body consisting of all Exchange members and
companies listed on the Exchange.
5) “Board of Governors” or “Board” or “Governors” means the Board of Governors of the Exchange or the Governors who sit on the Board.
6) “Governing Council” means the Governing Council of Iraq and, following the
transfer of full governance authority to the Interim Iraqi Government, the body
vested with national executive authority.
7) “Chair” means the Chair of the Exchange’s Board of Governors of the Exchange; or Chair of the Securities and Exchange Commission, as the context indicates.
8) “CEO” means the Chief Executive Officer of the Exchange.
9) “Member” of the Exchange means a licensed Broker of the Exchange
10) “Broker” means a natural person licensed by the Board of Governors under Section 5(1) (a) of this Law to engage in securities transactions on the Exchange or a legal person so licensed under Section 5(1) (b). A bank may be accepted as a Broker if authorized to act in that capacity under the Banking Law.
11) “Bank” means an entity authorized by the Central Bank of Iraq to conduct
banking operations in Iraq.
12) “Company” means a joint stock Company that is an issuer of securities subject to the provisions of this Law or a Company referred to in Section 5(1) (b) (ii) of this Law.
CPA/ORD/18 April 2004/74
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13) “Depository” means the Iraq Depository which will serve as the central clearing and settlement facility for all securities transactions.
14) “Licensed Securities Market” shall mean any securities market that is granted a license by the Iraq Securities Commission to conduct securities transactions.
15) “Securities” mean tradable interests representing financial value, including shares of corporate stock or mutual funds, bonds issued by corporations or the government, stock options, warrants and other derivative securities, limited partnership units and various other form “investment instruments”.