Regulations on Opening Branches for the Iraq Securities Market No. 22 of 2023

Iraq Securities Commission

Based on the provisions of Section (12/12) and Section (1/1/2) of the Coalition Provisional Authority Order - Dissolved No. (74) of 2004, and Article (12) of the Companies Law No. (21) of 1997, as amended,

We have issued the following instructions:

Regulations on Opening Branches for the Iraq Securities Market No. (22) of 2023

Article (1) The Iraq Securities Market shall open branches throughout Iraq, including the Kurdistan Region.

Article (2) The branch shall take the form of a limited liability company, with the Iraq Securities Market owning all its shares, and its minimum capital shall be (25,000,000) twenty-five million Dinars.

Article (3) The main center for company management shall be the place of business operation.

Article (4) The company's activities shall be conducted in accordance with the contract attached to these instructions, which constitutes an integral part thereof.

Article (5) The company is required to obtain a license from the Securities Commission to conduct its business.

Article (6) The Iraq Securities Market is committed to providing technical and logistical support for the company's operations.

Article (7) The company shall perform the following:

• First - Supervision, inspection, and oversight of licensed brokerage firms, and submitting results and recommendations to the Board of Governors of the Iraq Securities Market.
• Second - Submitting listing applications for companies wishing to list, along with stating its opinion.
• Third - The company is committed to opening a department called the (Depository Center Department) to perform the center's functions to facilitate investors' transactions.
• Fourth - Submitting licensing applications for brokerage firms to the Board of Governors of the Iraq Securities Market for decision-making.
• Fifth - The company is committed to opening an Anti-Money Laundering and Combating the Financing of Terrorism department.
• Sixth - The company shall collect fees and commissions collected by the Iraq Securities Market, in accordance with the regulations and controls issued by the Commission.

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Article (8) a. The company shall submit a complete application to the Securities Commission, supported by the company's documents and the Managing Director's documents, for the purpose of licensing. b. The Commission shall decide on the application within (10) ten working days from the date of submission; if no response is issued within this period, the application shall be deemed approved. c. If a decision is issued to reject the application, it must be reasoned. d. The aggrieved party may appeal the rejection to the competent court in accordance with the law.

Article (9) The following conditions are required for granting a business license: a. The company must possess legal personality. b. The Managing Director of the company must:

• Have expertise and specialization in the company's activity.
• Be at least 35 years old.
• Have a good reputation and conduct, and not have been convicted of a felony or a misdemeanor involving moral turpitude.

Article (10) Conditions for revocation of the license: a. When the company loses any of the conditions for granting the license. b. When a decision for liquidation is issued by the competent authorities.

Article (11) The company's activity, its licensing, and the revocation of the license are subject to the decision of the Securities Commission.

Article (12) The company may accept endowments, donations, and gifts in accordance with the law.

Article (13) These regulations shall apply from the date of their issuance.