Master of Economics and Business Bissenova R.A.,

senior lecturer Zhaksylykova Zh.T.

Kyzylorda State University Korkyt Ata, Kazakhstan

The operations of commercial banks in the stock market

The banks in the securities market may act as of issuer of its own of shares, bonds, can issue promissory notes, deposit and savings certificates, and other securities; in a role investors acquiring securities for its own account and in the role of professional participants of securities market, carrying out broker, dealer, depository and trustee activities. Commercial banks as a universal credit and financial institutions are the securities market participants.

In all countries are now incomes of commercial banks from operations with securities and investment activity are play an increasingly prominent role in the formation of profit. Expansion and diversification of forms of participation of commercial banks in the securities market led to the organization of major financial and banking groups, led by the commercial banks, which are concentrated around a relatively independent structural units - investment funds, brokerage firms, trust companies, consulting firms, etc.

Underwriting. Underwriter (on the securities market) - a legal entity that manages the process of issue of securities and their distribution.

The underwriter can be any legal entity which has a license KFN RK, that is, it can either be an investment company or an investment bank. This entity offers to investors to buy the issue of securities of the issuer.

The contract with the underwriter can be of several types:

«A firm commitment» - underwriter agrees to purchase all of the securities offered for the initial public offering and resell them.

All risk from the sales goes on the underwriter.

«Maximum efforts» - sale of the maximum number of securities of the new issue without financial responsibility. Underwriter removes some of the risk in the event that a part of the securities cannot be sold.

«With the expectation» - underwriter agrees to buy back part of the issue for subsequent placement, which was intended to implement subscribed rights, remained not redeemed by the old shareholders.

«All or Nothing» - the agreement on underwriting terminated if the underwriter failed to distribute all of emission.

Underwriting on the securities market can be carried out by a syndicate of underwriters, that is by group of investment banks or investment companies, created for a short time in order to ensure the sale of a new issue of securities at the price established in the preliminary agreement.

The syndicate of underwriters headed lead underwriter. Lead underwriter organizes syndicate for the placement of securities, maintains contact with the issuer, and keeps a record of the placed securities.

The investment portfolio of banks. The investment portfolio of the bank are formed as a result of investment operations. The investment portfolio of the bank formed as a result of investment operations. Investment operations - an activity on the investment of funds of the bank on a relatively long period of time in securities, real estate, statutory funds of enterprises, collections, precious metals and other objects of investment, the market value of which has the ability to grow and bring the owner income in the form of interest, dividends, profits from resale and other direct and indirect revenue. The composition of the investment portfolio consists of both financial and real investments.

Financial investments - it is investing in a variety of financial instruments such as securities, deposits, special bank deposits, shares, shares, investment in the statutory funds of enterprises.

Real investment - is investing in tangible and intangible assets. Tangible investment objects include: house, buildings, equipment, precious metals, collections and other material assets.

Investments in intangible assets include: an investment in patents; the licenses; "Know-how"; technical, scientific and practical, technological and design and estimate documentation; property rights that arise from the copyright; experience and other intellectual property; the right to use land, water, resources, facilities, equipment (for rent); other property rights .

Thus, a significant portion of the securities portfolio of the bank is included to the investment portfolio, forming a financial investment. However, given the long-term nature of the investment, not all securities that are in the banking book, can be classified as an investment. Thus, the debentures in the form of securities - bills, treasury bills with circulation period of a year, derivatives wrongfully attributed to the investment.

In terms of the duration of handling period, all the securities it is advisable to divide into two main groups: Money market instruments - securities with circulation period of one year, have a low yield, low risk and high liquidity; Capital market instruments that have a maturity of over one year and are generally characterized by higher yield and increased riskiness; their liquidity depends on the characteristics of the market.

Custody activities of banks and dealing activities of banks. The Custodian is a legal entity created and acting in any organizational - legal form, in accordance with the legislation of the Republic of Kazakhstan. In its activities the Custodian are guided by legislation of the Republic of Kazakhstan and the present Regulations.

The Custodian shall not be an affiliated person client. The Custodian shall be entitled to operate only if the license for storage of securities (Safe storage), and a license to carry out custody activities issued by the National Bank of the Republic of Kazakhstan.

Custodial activities - is activities of specialized organizations - professional participants of securities market to ensure the preservation and recording under their securities and funds of clients.

The objects of the Custodian activities are cash and securities are admitted to trading in the Republic of Kazakhstan. The subjects of custodial activity are the Custodian and its clients. The Custodian performs the following functions:

a) control over the execution of securities transactions of their clients;

b) preservation and accounting of securities and funds of clients placed in the storage;

c) records of registered securities;

d) acting as a nominal holder of securities;

d) the execution functions of the paying agent for securities transactions of clients;

e) execution of orders by transfer and receipt of securities and funds of clients;

g) obtaining income on securities and transfer them to the of clients's account;

h) The transfer of information from the issuer's to clients;

i) cash payments on orders of of clients;

a) the provision of other services provided by the contract with the client and does not contradict the legislation of the Republic of Kazakhstan.

Responsibilities of the Custodian:

a) control over the execution of securities transactions of their clients;

b) the proper safekeeping of entrusted funds to it and securities of clients;

c) execution of of clients orders in strict accordance with their content;

d) non-disclosure of information about customers' accounts without the direct guidance of the client to third parties except for the National Bank of the Republic of Kazakhstan and other bodies in the cases stipulated by the legislation of the Republic of Kazakhstan;

e) provision of the balance of separation of securities and funds of clients and its own securities and cash;

e) compliance with the established technology of the accounts and accounting of securities and funds;

g) provision of information on the state on a regular basis of customer accounts and on his first request;

h) maintenance of a written report on the execution of each client order;

u) other duties stipulated in the custody agreement.

Reorganization and liquidation of the Custodian in a manner and conditions provided for by the legislation of the Republic of Kazakhstan in coordination with NBK.

In case of liquidation, the Custodian shall in writing notify the client and NLRK to terminate its activities two months before the date of termination. During this period, the Custodian shall transfer all entrusted to him the client funds and securities and to submit a report. The procedure and the procedure for the transfer of funds and securities shall be established by the legislation of the Republic of Kazakhstan. Dealing (Dealing) - fulfillment of commercial transactions on organized markets in order to profit on the difference between the purchase and sale of assets.

Literature

1. Закон РК «О рынке ценных бумаг» от 2 июля 2003 года №461– II ЗРК, Алматы: «Издательство LEM», 2003

2. Деятельность коммерческих банков: Учебное пособие/ Под ред. проф., д.э.н. А.В. Калтырина – Ростов н/Д: «Феникс», 2004. – 384 с.

3. Челноков В.А. Банки и банковские операции: Букварь кредитования. Технологии банковских ссуд. Околобанковское рыночное пространство: Учеб. для вузов/ В.А. Челноков. 2-е изд. перераб.М: Высш.школа, 2004, 291 с.

4. Деньги Кредит Банки Ценные бумаги для студентов вузов. Серия «Шпаргалки». Ростов н/Д: Феникс, 2004. – 461 с.