The Internal By-Law of the Securities Depository Center’s Proceeds for the Year 2004

Issued Pursuant to Article (84) of the Securities Law No. (76) for the Year 2002

B-

The words and expressions not defined in this By-Law shall have the meanings assigned to them in the Law unless the context indicates otherwise.

1.

The association fees for the Center’s membership.

2.

The annual subscription fees for the Center’s membership.

The registration fees for government bonds, bonds issued by public institutions and municipalities and corporate bonds and shares and investment units issued by closed mutual funds.

4. 

The charges and fees for services provided by the Center.

5.

The commissions for trading and ownership transfer of securities.

6.

The fines imposed by the Center on its members and securities’ issuers in accordance with this By-Law and the Instructions issued by the Center.

7.

Any commissions, fees or charges specified by the agreements concluded with the Center.

8.

Any commissions, fees or other related charges determined by the Board of Directors with the approval of the Board.

Article (9)

A-

The Center shall collect a trading commission for the transfer of the ownership of securities traded at the Market (with the exception of government bonds, bonds issued by public institutions and municipalities and corporate bonds) of (0.0004) four per ten thousand of the market value of securities and from each party of the contract.

B-

The Center shall collect a trading commission for the transfer of the ownership of government bonds, bonds issued by public institutions and municipalities and corporate bonds traded at the Market of (0.0001) one per ten thousand of the market value and from each party of the contract.

Article (10)

A-

The Center shall collect a commission for the transfer of the ownership of securities (with the exception of government bonds, bonds issued by public institutions and municipalities and corporate bonds) for transactions excluded from trading through the Market of (0.0015) fifteen per ten thousand of the market value and from one party with a minimum of (250) two hundred and fifty fils in the following cases:-

1.

2.

3.

4. 

5.

1.

Family transfers that occur between ascendants and descendants, between siblings or half-siblings and between spouses.

2.

Donating securities to religious, charitable or social associations registered at the competent authorities.

3.

Transfers for the purpose of dividing joint ownership of securities.

C-

The Center shall collect a commission for the transfer of the ownership of securities (with the exception of government bonds, bonds issued by public institutions, municipalities and corporate bonds) for transactions excluded from trading through the Market of (0.0014) fourteen per ten thousand of the market value or the agreed upon price between the parties whichever is higher from each party of the contract with a minimum of (1) one Dinar for each party in the following cases:

1.

2.

1.

Transfer of securities suspended from listing.

2.

Transfer of securities suspended from trading.

3.

Transfer of non- listed and non-traded securities through the Market.

The Center shall collect a commission for the transfer of the ownership of government bonds, bonds issued by public institutions and municipalities and corporate bonds in the cases mentioned in Paragraph (A) of this Article of (0.0001) one per ten thousand of the market value and from each party of the contract with a minimum of (1) one Dinar for each party.

Number

Item

Amount in Dinar/Percentage

First: Fees

A-

Service fees paid by the Member

1.

Fees for the issuance of transfer deeds in exchange for lost deeds or fees for the issuance of a statement of transfer deeds in exchange for lost statements.

(5) Five Dinars for each deed or statement.

2.

Fees for updating the registers of the owners of securities as a result of distributing stock dividends, stock splits, merger or decrease of capital paid by the issuer of the security.

(100) One hundred fils for each shareholder.

3.

Fees for returned transfer deeds.

(1) One Dinar for each deed.

4.

Fees for correcting data of transfer deeds.

(5) Five Dinars for each transfer deed.

5.

Fees for account set-up on the Center’s database paid once for each account paid monthly.

(250) Two hundred and fifty fils for each account.

B-

Service fees paid by the securities’ owner

1.

Fees for updating client data and information on the Center’s database.

(250) Two hundred and fifty fils.

2.

Fees for freezing and unfreezing securities by the request of the client and paid by the client.

(5) Five Dinars for each transaction.

3.

Fees for placing a pledge on securities.

(5) Five Dinars for each transaction.

4.

Fees for the issuance of a statement of account for securities owned by the owner.

(1) One Dinar for each statement.

5.

Fees for the issuance of an ownership notice to the securities’ owner.

(2) Two Dinars for each ownership notice.

Second: On line Communication Fees

1.

Fees for on line communication between the Center and the issuer of the security via leased line, dial up or ATM line as follows:

1- Fees paid for once upon linking the second computer.

(500) Five hundred Dinars

2- Annual fees for the second computer.

(150) One hundred and fifty Dinars

2.

Fees for on line communication between the Center and the broker through the Market via leased line or fiber optic lines as follows:

1- Fees paid for once upon communication for the second computer.

(750) Seven hundred and fifty Dinars

2- Annual fees for the second computer.

(200) Two hundred Dinars.

Third: Fines

1.

Fines for the issuer of securities delay in registering the ownership transfer of securities in its registers for more than two days of receiving the transfer deed.

(1) One Dinar for each transfer deed and for each day of delay paid by the concerned issuer of the security.

2.

Fines of not returning the suspended transfer deeds’ notice by the issuer of the security to the Center within two working days from receiving those notices.

(5) Five Dinars for each notice for each day of delay paid by the concerned issuer of the security.

3.

Fine for the broker not paying its financial obligations to the settlement within the specified time period.

 (1%) One percent of the amount that should be paid for each day of delay paid by the broker who defaulted on the payment and with a maximum of 50%.

4.

A fine for not transferring securities from the securities owner’s account at the Center to his account with the concerned broker before the completion of the sale on the same trading day.

(10) Ten Dinars for each transfer transaction paid by the concerned broker.