Regulation No. 22 of 2023 for Opening Branches of the Iraq Stock Exchange

Iraqi Securities Commission

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

We have issued the following instructions:

Regulation No. (22) of 2023 for Opening Branches of the Iraq Stock Exchange

Article (1) The Iraq Stock Exchange 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 Stock Exchange owning all its shares, and the 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 activity shall be in accordance with the contract attached to these instructions, which constitutes part of them.

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

Article (6) The Iraq Stock Exchange is committed to providing technical and logistical support for the company's work.

Article (7) The company shall perform the following:

• First - Supervision, inspection, and oversight of licensed brokerage companies, and submitting results and recommendations to the Board of Governors of the Iraq Stock Exchange.
• Second - Submitting listing applications for companies wishing to list, along with stating an 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 companies to the Board of Governors of the Iraq Stock Exchange 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 Stock Exchange, 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 licensing purposes. B. The Commission shall rule on the application within (10) ten working days from the date of submission; if no response is issued within this period, it shall be considered an acceptance of the application.
C. If a decision is issued to reject the application, it must be reasoned.
D. The aggrieved party may object to the rejection before 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 company's Managing Director must:

• Have experience 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) This regulation shall be applied from the date of its issuance.