Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 4

Each market must have clear rules assuring investor protection by safeguarding participants from the financial risks of failed settlement and ensuring that listed companies are required to follow sound policies on corporate governance, transfer of economic benefits and shareholder rights.

1.	Does the depository or the market have securities lending and borrowing schemes in place, and are these open to all market participants and their settlement agents?	Yes, available upon request, on a case-by-case basis.
2.	Does the settlement system mark fail trades to market and collect margin from the failing counterparty to protect the innocent counterpart's interest?	No.
3.	Does the market operate a guarantee fund or have an equivalent procedure to protect against the cost of failed transactions; and which sectors of the market does it cover?	Yes, together with the stock exchange.
4.	Are the stock transfer agents (share registrars) linked electronically to the depository?	The central depository is at the same time the market's central registrar for all listed issues.
5.	Is there a legal maximum time period to complete ownership transfers in the books of the issuer? If so, does market practice adhere to the deadline?	No; in practice, the share register is updated simultaneously with finality of settlement.
6.	Are investors entitled to all benefits arising on a security from the point of purchase; and how are any rules enforced?	Yes, rights move on trade date. They are legally enforceable from the point of registration of the ownership change (which occurs on settlement date).
7.	Is proxy voting permissible in the market and can such proxies be lodged by post or other remote delivery method?	No.
8.	Are there binding rules in the market stating the minimum and maximum lapsed time between the announcement and completion of key events, including registration, the calling of shareholder meetings, the payment of dividends or interest, rights issues, tender offers and other voluntary corporate actions?	Registration: see answer 5. above Shareholder meetings and entitlements: The securities law in Bulgaria requires that, in order to be able to attend a general meeting, shareholders must be on record with the registrar 14 days prior to the meeting date. Entitlements must be distributed 14 days after the General Meeting of Shareholders.
9.	Are all voluntary corporate actions advised through a central mechanism assuring consistent information to all investors?	Yes, through the central depository, the stock exchange and the Securities and Stock Exchange Commission.
10.	Is information on corporate actions available electronically, and is the minimum lapsed time for responding to such actions sufficient to enable all domestic and foreign investors to respond in a timely and considered fashion?	Information is published on the websites of the the stock exchange and the Securities and Stock Exchange Commission.