Article 189. Special Considerations with Respect to Monitoring, External Management and Liquidation Proceedings in Insolvency Case of Professional Participants of Securities Market

From the moment of the introduction of the monitoring procedure, the temporary manager shall be obliged, within ten days from the date of appointment, to send a notice about initiation of insolvency proceedings and entry into the rights of a temporary manager to investors in the securities market who transferred to the debtor, who is a professional participant in the securities market, their securities for management. Securities and other property of clients at the disposal of a professional participant in the securities market shall not be included in the liquidation estate.

From the moment of the introduction of the procedure of external management or liquidation proceedings, the remaining securities of clients shall be subject to return to clients, unless otherwise provided by the agreement of the external manager or liquidation manager with clients.

If the claims of clients in relation to the return of securities of one type (one issuer, one category, one type, one series) belonging to them exceed the number of the indicated securities at the disposal of a professional participant in the securities market, the return of these securities to clients shall be carried out in proportion to the requirements of the clients. Clients' claims in their unsatisfied part shall be recognized as monetary obligations and shall be satisfied (repaid) in the manner prescribed by Chapter 11 of this Law.

In the course of the external management procedure of a professional participant in the securities market, the external manager may transfer securities transferred to them for management by clients to another professional participant in the securities market with the consent and on behalf of clients.