.::ARDSHININVESTBANK::.

Acting as RA internal state debt managing dealer and dealer of bonds market issued by the RA Central Bank, the Bank conducts active operations both in primary and secondary bond market. According to Custody Agreement signed between the Bank and the Customer, the Bank performs custody operations, opening and servicing depot accounts for Customers’ bonds.
Custody operations, including rates of bond transactions and depot account servicing, are established in accordance with the Bank’s

Basic Conditions of Custodial Activities.

BASIC CONDITIONS OF CUSTODIAL ACTIVITY

These Conditions establish the terms of conducting Custody operations by Ardshininvestbank.
Ardhininvestbank conducts Custody operations in compliance with the RA legislation and “Policy on Custodial Operations of Government Bonds of the Republic of Armenia”, approved by the CBA Council Resolution No. 75 N dated March 30, 2004.
The Bank provides Custody services and opens a depot account for the Customer on the basis of Custody Agreement signed with the latter.
Basic terms used in these Conditions:
a) Bank means the Head Office of Ardshininvestbank;
b) Bond means short-term government bonds (STGB), medium-term government coupon bonds with partial repayments (MTGCBPR), medium-term government coupon bonds (MTGCB) and long-term government coupon bonds (LTGCB), issued by the RA Ministry of Finance and Economics.
c) Trading day means the time period established by the Bank for Customer servicing. Investor means a physical or legal person, who is the owner of Bonds; Volume of bonds means face value of Bonds which must be the multiple of the step /stride/ fixed for the given bond; Auction means competition organized for the purpose of primary placement of bond issues, where buyers submit applications for acquisition of bonds; Competitive bid means a form of proposal submitted at auction, in which the Investor indicates volume and buying price of bonds put up for sale (with accuracy of one dram); Non-competitive bid means a form of proposal submitted at auction, in which the Investor indicates the volume of bonds he is willing to acquire at average weighted yield formed at the auction; Customer means a person having signed a Custody Agreement and maintaining a depot account with the Bank. Besides Investors, bond pledgees may also be Bank Customers; DVP principle means a principle, according to which the assignment and pledge of bonds is effected by transfer of opposite monetary funds.
Bond operations are executed in the Bank on Customers’ instructions, in accordance with these Basic Conditions and Custody Agreement signed between the Bank and the Customer.
On the instruction and at the expense of the Customer the Bank participates in primary placement auctions, upon receiving from the Customer an Auction application for bonds acquisition (Annex N2 ):
The Bank effects redemption, partial redemption of Bonds and/or coupon payments.
The Bank effects sale of Bonds to its Customers (at prices agreed between the Bank and the Customer) upon receiving from its Customers an Application for Bonds purchase (Annex N3 ).
The Bank effects purchase of Bonds from its Customers (at prices agreed between the Bank and the Customer) upon receiving from them an Application for Bonds sale (Annex N4 ).
On the instruction of the Customer the Bank effects assignment of the Customer’s Bonds on DVP principle, upon receiving from the Customer a Bonds Sale Order prepared according to Form Ðî 521. (Annex N5 ).
On the instruction of the Customer the Bank effects assignment of Bonds without DVP principle, upon receiving from the Customer a Bonds Delivery Order prepared according to Form Ðî 522 (Annex N6 ).
On the instruction of the Customer the Bank effects receipt of Bonds on DVP principle, as instructed by Customers, upon receiving from the Customer a Bonds Purchase Order prepared according to Form Ðî 521 (Annex N7 ).
On the instruction of the Customer the Bank pledges the Customer’s Bonds on DVP principle, upon receiving from the Customer a Bonds Pledge Order prepared according to Form Ðî 540 (Annex N8 ).
On the instruction of the Customer the Bank pledges the Customer’s Bonds without DVP principle, upon receiving from the Customer a One-sided Bonds Pledge Order prepared according to Form Ðî 542 (Annex N9 ).
On the instruction of the Customer the Bank accepts the Bonds in pledge on DVD principle, as instructed by Customers, upon receiving from the Customer an Order of Acceptance in Pledge prepared according to Form Ðî 541 (Annex N10 ).
On the instruction of the Customer the Bank takes out of pledge on DVP principle the Bonds having been pledged in favor of Customers, upon receiving from the Customer a Pledgee’s Order of Taking Bonds out of Pledge prepared according to Form Ðî 543 (Annex N11 ).
On the instruction of the Customer the Bank takes out of pledge without DVP principle the Bonds having been pledged in favor of Customers, upon receiving from the Customer a One-sided Order of Taking Bonds out of Pledge prepared according to Form Ðî 545 (Annex N12 ).
On the instruction of the Customer the Bank takes out of pledge on DVP principle the Bonds having been pledged by Customers’ instruction, upon receiving from the Customer a Pledger’s Order of Taking Bonds out of Pledge prepared according to Form Ðî 544 (Annex N13 ).
On the instruction of the Customer the Bank abandons the Bonds pledged in favor of Customers, upon receiving from the Customer an Order of Pledged Bonds Abandonment prepared according to Form Ðî 546 form (Annex N14 ).
On the instruction of Customers the Bank makes replacement of Bonds having been pledged by their order, upon receiving from the Customer a Pledger’s Order of Pledged Bonds Replacement prepared according to Form Ðî 547 (Annex N15 ).
On the instruction of the Customer the Bank makes replacement of Bonds having been pledged in favor of Customers, upon receiving from the Customer a Pledgee’s Order of Pledged Bonds Replacement prepared according to Form Ðî 548 (Annex N16 ).
On the instruction of the Customer the Bank replaces the pledger of Bonds having been pledged by the Customer or in favor of Customers, upon receiving from the Customer an Order of Bonds Pledger’s Replacement prepared according to Form Ðî 549 (Annex N17 ).
On the instruction of the Customer the Bank replaces the pledgee of Bonds having been pledged by the Customer or in favor of Customers, upon receiving from the Customer an Order of Bonds Pledgee’s Replacement prepared according to Form Ðî 550 (Annex N18 ).
On the instruction of the Customer the Bank places a lien on Bonds having been pledged in favor of the Customer, upon receiving from the Customer an Order of Placing Lien on Bonds prepared according to Form Ðî 560 (Annex N19 ).
On the instruction of the Customer the Bank lifts the lien of Bonds having been pledged in the Customer’s favor, upon receiving from the Customer an Order of Lifting the Lien on Bonds prepared according to Form Ðî 561 (Annex N20 ).
On the instruction of the Customer the Bank transfers the Bonds put under lien by Customers, upon receiving from the Customer an Order of Transfer of Bonds Placed Under Lien prepared according to Form Ðî 562 (Annex N21 ).
For participation in auction of primary placement on the instruction and at the expense of the Customer, the latter shall on the banking day preceding the auction date deposit on relevant account the amount required for participation in the auction, as well as the amount corresponding to the rate fixed by the Bank. The application submitted for acquisition of Bonds at a cost exceeding deposited amount shall be rejected by the Bank. The sum equal to redemption, partial redemption and/or coupon payment amount of Bonds existing on the Customer’s free securities depot account as of the auction date, but not yet credited to the Customer’s account, shall also be considered as deposited amount.
Maximum size of Customer’s participation in auctions of STGB, MTGCBPR and MTGCB primary placement makes up 10% of the issue volume. For participation exceeding the specified size the Customer shall obtain the Bank’s approval.
Only competitive bids may be submitted by the Customer at auctions of STGB, MTGCBPR and MTGCB primary placement.
At auctions of LTGCB primary placement the Customer may submit both competitive bids in maximum amount of 50% of the issue volume, and non-competitive bids in maximum amount of 20% of competitive bids submitted by him. For bids exceeding the specified rate the Bank’s approval will be required.
For execution of repo and reverse-repo transaction the Customer may submit only Bonds purchase or sale orders (Annex N3 or N4 ).
Orders filed by the Customer shall serve as a basis for conducting relevant transactions with the Customer’s Depo or AMD account.
Deadline for submission of Bond Orders to be executed on the same banking day is 3:00 p.m. of the given banking day.
Filling in by the Customer of all fields of Orders submitted by him/it is requisite.
Submitted Orders shall be signed by the competent person and sealed (for legal entities).
Orders shall be executed during the term indicated on them by the Customer.
Rates fixed for opening and servicing depot accounts, participating in primary placement auctions through the Bank are presented in Annex N1 .
Buying price of STGB is calculated pursuant to Annex N22 , of MTGCBPR – pursuant to Annex N23 , of MTGCB and LTGCB – pursuant to Annex N24
In case of each change on the Customer’s depot account the Bank shall during the following banking day provide to the Customer a statement of depo account (Annex N25 ) and a reference on executed transactions (Annex N26 ).
Upon termination of its Custodial activity the Bank shall publish in mass media information about such termination. In the event of not receiving Bonds Delivery Orders from the Customer during a one-month period, the Bank shall transfer to the Central Bank the data on Bond holders, and in case of pledged Bonds – also information on such persons.
These Conditions are public and constitute an integral part of Custody Agreement signed between the Bank and the Customer.
The Bank shall notify the Customer of changes introduced in these Conditions no later than during two weeks prior to their effective date.

On Customers’ instructions the Bank also conducts transactions both at bonds primary placement auctions and in secondary market.

Ardshininvestbank is one of the most active participants of foreign exchange market. The Bank executes transactions in USD, Euro, British Pound Sterling, Swiss Frank and RF rouble. The Bank’s flexible foreign exchange policy enables to offer competitive exchange rates at interbank foreign exchange market, which allows to maintain the Bank’s leading position in the banking system, ensuring high profitability.

Arshininvestbank is a member of Securities Clearing System since december 15, 2008. For more information on regulations of Securities Clearing System please visit http://www.nasdaqomx.am/