SECURITIES ACCOUNTING SYSTEM

P R E S E N T A T I O N

M O S C O W O C T O B E R 2 0 0 5

PECULIARITIES I N GEORGIA

Georgian Securities Market Georgian Securities Market InfrastructureInfrastructure

GEORGIAN STOCK

EXCHANGE

Central Depositor

ySettlement

Banks

Securities Registrars

Brokerage Company

Brokerage Company

GEORGIAN OVER-the- COUNTER

MARKET

Securities Registrars

S E C U R I T I E S D E P O S I T I O N

Brokerage Companies

Central Depository

Clients

Securities Central Depository

Brokerage Companies

Commercial Banks

Securities Registrars

WHO REALIZE DEPOSITORY WHO REALIZE DEPOSITORY FUNCTIONS IN GEORGOAN FUNCTIONS IN GEORGOAN

SECURITIES MarketSECURITIES Market

Levels of Nominee HoldershipLevels of Nominee Holdership

Beneficiary-owners of securities

Transfer to first-level NH

Brokerage Companies

Central Securities Depository

Commercial Banks

Transfer to second-level

NH

Transfer to second-level

NH

Transfer to second-level NH

Nominee HoldershipNominee Holdership

R E G I S T R Y - Accounts

Central Depository Accounts

BeneficialO w ner

Account

BrokerageCompanyAccount

CentralDepository

Account

2

Clients D irectAccounts

Brokers C lientsAccounts

BrokerageCompanies

Proprietary Accounts

1 1 ,4

R E G I S T R A R

C e n t r a l D e p o z i t a r y

1 '

2 '

3 '

Types of Nominee HoldingTypes of Nominee Holding

• Provide information to customers;

• Receives dividends;

• Sells/Purchased securities;

• Manages securities;

• Keeps securities;

• Combinations of all the above.

TRADES & ISSUERS• There are precious few quality public companies at

present…

Market Parametrs

2002 2003 2004

Georgian Stock Exchange

Trade sessions 104 103 102

Turnover, mln. Lari 8,5 1,6 47

Turnover, mln. Shares 11 8 31

Over-the-counter market

Turnover, mln. Shares 18 56 75

TREASURIES PRIMARY MARKET

25,39

54,00

81,70

198,77

<<

<<

<<

44,62

Max

17,64

35,79

23,05

23,75

<<

<<

<<

27,02

Min

21,33139 299 800139 300 0002004

42,94226 978 700227 900 0002003

42,94250 223 000259 300 0002002

67,3268 079 80081 950 0002001

<<39 221 30040 000 0002000

<<3 948 0004 800 0001999

<<47 438 40082 166 6001998

35,6413 917 00020 656 8001997

MiddleYEAR

FLOATING VALUE

ANNUAL RATE of RETURNEMISSION

VALUE

Some Parameters of GCSD in 2004

2635

48

Deposited Securities (#), Total 1 373 388 816

Deposited Cash (GEL), Total 72 304 492

Settled Trades 1094

Number of open brokers’ client accounts (BC) before the year end

Number of direct accounts (DI) before the year end

5.59710 000 00010 000 000,00 Georgian BankGEB

0.10010 000 00010 000 000,00People’s BankAMB

0.2001 812 96710 350 000,00Sarajishvili &EniseliENIS

-5 200 00010 400 000,00GergetiGRG

0.70021 000 00021 000 000,00United Georgian BankUGB

1.92012 000 000 21 840 000,00Poti shipyardPOGR

0.00126 327 13026 327 130,00Kutaisi autofactoryKAVT

-29 700 16829 700 168,00FERO

1.00081 147 88681 147 886,00AEST

1.000111 000 000202 020 000,00

Zestafoni Ferrous

CHMN

Last price in 2004

Outstanding Shares

Authorized capital stock

JSK

name

GSEcode

ChiaturManganumi

AES Telasi

TOP 10 GEORGIAN JSK (by CAPITAL)TOP 10 GEORGIAN JSK (by CAPITAL)

THANK YOU

ANY QUESTIONS?

Contact Information

GEORGIA, 0126, TBILISI, Chavchavadze ave. 74a

TELEFONS: (995 32) 22-07-18; (995 32) 22-07-49

FAX: (995 32) 25-18 -76 WEBSITE: www.gcsd.ge

DIRECTOR – SANADZE GAIOZ

Georgian Central Securities Depository