ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)686
Vol.1975/0253

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(75)686 final .
Brussels ,23December 1975
Proposal foraDirective
coordinating theconditions for theadmission ofsecurities
toofficial stock exchange quotation
(submitted totheCouncil bytheCommission )
COM(75 )686final

COÎTTEÎTTS
EXPLAI'/.TOITCPgHOn/uIUM
I.Introduction
II.Coordination :thealternatives
III.Scopeofthecoordination
IV.Fieldofapplication
A.Officialquotation
B.Securitiesaffected
V.Generalprinciplesunderlingthe
approachadopted
A.Conditionsforadmission
B.Methodsofcontrolandpowersofthe
competentauthorities
VI.Cooperation betvreenMemberStatesandthe
creationofaContextCommittee
PROPOSAL FORACOUNCILDIRECTIVE
Introduction
Sections:
I.Generalprovisionsandfieldofepplica/tion
(articles1-8)
II.MethodsofcontrolEJidpowersofthecompetent
authorities (reticlesS-17)
III.Methodsofpublishingtheinformationtobemade
availabletothepublic(article18)

iv•Proceduresforcooperation betweenMemberStates
(article19)
"îr ''
«'•
V.ContactCommittee(article20-22)
VI.Finalprovisions(articles23,-24)
SCHEDULE!A(AnnexI)
Conditionsfortheadmissionofsharesto
officialquotationonstockexchangesof
MemberStatesoftheEuropeanCommunities
SCHEDULEB(AnnexII)
Conditionsfortheadmissionofdebtsecurities
toofficialquotationonstockexchangesof
MemberStatesoftheEuropeanCommunities
SCHEDULEC(AnnexIII)
Obligationsofcompanieswhosesharesareadmitted
toofficialquotationonastockexchangeofa
MemberStateoftheEuropeanCommunities
SCHEDULED(AnnexIV) '
Obligationsofissuerswhosedebtsecurities
areadmittedtoofficialquotationonastock
exchangeofaMemberStateoftheEuropeanCommunities

Proposalforadirective
coordinating theconditionsfortheadmissionofsecurities
toofficialstockexchangequotation
Explanatory memorandum
I.Introduction
1.On5October1972,theCommissionlaid"beforetheCouncilaproposal
foradirectiveconcerningtheprospectusto"bepublishedwhensecurities
areadmittedtoofficialstockexchangequotation(l).Theaimofthis
proposalistocoordinatenationalprovisionsrelatingtothecontent,
checkinganddistribution oftheprospectustobepublishedwhensecurities
* '
areadmittedtoofficialstockexchangequotationinaMemberState.Thus,:
itsprincipalobjectiveistoharmonizeandimprovepublicinformation on
thecharacteristics ofsecuritiesadmittedtoquotationandontheassets,
financialsituationandbusinessperformanceoftheirissuers.
Theproposal,whichensureseffectiveprotectionofinvestorsand
alsofacilitatestheadmissionofsecuritiesto'official'quotationon
stockexchangessituatedin'thevariousMemberStates,ispart.ofthe
workundertakenwith,aView"totheestablishment 'ofaEuropean ,capital •
market.
•*'
i
». .* '
2.''Theintroduction ofaCommunityprospectuswouldnot,.however,
ofitselfleadtothecreationofaEuropeancapitalmarket.Thereare
,otherobstaclestotheinterpenetration ofsecuritiesmarkets,.notably
thepresentdifferencesbetweenthellemberStatesasregardsthe..
conditionsfortheadmissionofsecuritiestoquotation.
(l)OJIToC131,13December1972.On8December1975»theCommission
presentedtotheCouncilanajnendedproposalforadirective.

These difierences between theconditions foradmission have ,
firstly ,theeffect ofmaking iteasier toobtain access tocertain
markets than toothers .Asaresult securities admitted toofficial
quotation inoneMember State mayberefused admission toquotation in
another Member State because they donotfulfil thestricter requirements
imposed there .
Secondly ,thedifferences have theeffect ofimposing anextra
burden onissuers applying forquotation oftheir securities onstock
exchanges situated indifferent Member States ,since ,they must provide
differing supporting evidence according totheMember States concerned .
This situation mayentail thesame disadvantages asthose resulting
from differing requirements onthecontent oftheprospectus tobe
published onadmission toquotation ,since itmayinfluence theissuer 's
choice ofthestock exchange onwhich herequests quotation ofhis ...
securities andsince inmany cases itimpedes thequotation ofoneand ;
thesame security onseveral stock exchanges situated indifferent Member
States .
TheCase forthecoordination ofconditions foradmission to > >
quotation isthesame asthat fortheintroduction ofaCommunity prospectus
Indeed ,itisan-essential complement totheprospectus .?• .... ,
3. Theobjective incoordinating theconditions foradmission to
quotation istosave ;issuers requesting thequotation oftheir securities ^
onseveral Community stock exchanges from having tocomply with widely ■
varying requirements byestablishing acatalogue ofconditions and
obligations applicable inalltheMember States . .

-3-
This coordination measure is,then ,designed tofacilitate the
introduction ofsecurities toofficial stock exchange quotation' situated
inthevarious Member States andcontribute thereby tothesetting up
ofaEuropean securities market -Itis-aldcdoEigmrfl to^prcnoteuecrulviitenoe' of
status andsubstance forofficially quoted securities onstock exchanges
in ,Member Sta,tes andensure effective protection ofinvestors .
1' '
II.Coordination ?the alternatives
1. Inthecourse ofpreparatory uork onthedrawing upoftheproposal ,
three approaches tocoordination were examined .
The first consisted inthe establishment oftwo lists ofconditions
foradmission toquptation ,oneofthese lists containing theconditions
which must beapplied inallMember States andtheother enumerating the :
fields inwhich theMember States would remain free tolaydown special
rules foradmission ,itbeing understood that noMember State could
impose conditions other than those included onthetwolists .
Thesecond solution envisaged provided forboth alist ofconditions
which allMember States must apply andalist ofconditions which they
could notimpose .TheMember States would therefore befree toimpose
other conditions inaddition tothose included inthefirst list ,provided
that they were notincluded inthelist ofprohibitions contained ih
the second list .
Thethird solution consisted inthe establishment ofa"hard core "
list ofconditions which arefundamental inthat they would beapplied
inallcircumstances inalltheMember States ,though theMember "States
would retain theright ,ontheonehand ,tomake theconditions onthis
list more rigorous and,,ontheother hand ,tolaydown conditions
additional tothose contained inthe list .

2. The firs-fc solution was discarded because itwas found that there
were serious obstacles toitsintroduction ,since itwould entail the
establishment oftwo exhaustive liets ofconditions for admission
andwould therefore require acensus ofallthesituations with which
theMember States could befaced when official quotation applications •
arefiled ,Moreover ^this solution would call forperiodic adaptations ^
oftheCommunity regulations inthefuture tocover thechanging nature
ofthesubject .Finally ,.enumeration ofthefields left open to -free
assessment by'theMember States would ,owing tothedivergences existing
instock exchange practices inthese countries ,have resulted inavery
long list vrhich would have weighed down the .coordination process ,.
Forsimilar reasons ,thesecond solution wasalso rejected .
Just asinthefirst solution itwasfound to -bepractically impossible ."
tolist alltheconditions ofadmission ,sointhesecond itseemed
impossible toidentify alltheprohibitions .Moreover ,theexistence
ofalist ofprohibitions implies that anything notspecifally prohibited -/
isauthorized .Tobeacceptable ,alist ofprohibitions would therefore' ,
have tobecomplete ,which would seem' impossible toachieve .
Itweis "there fore thethird solution whidh wasfinally adopted .
This solution ,althou^i itcannot yield full coordination ,constitutes
none theless afirst step towards subsequent closer alignment ofnational
requirements governing conditions ofadmission toquotation *Theexperience
gained inapplying ,inthevarious Member States ,theminimum rules for .
admission provided forinthedirective should considerably -facilitate
theimplementation ofmore extensive coordination during thesecond phase
ofharmonization .This proposal foradirective therefore represents
only afirst stage inawider harmonization process .

-5-
III .Scor>e ofthe coordination
Thequestion arose whether ,inaddition tothecoordination
ofbasic conditions fortheadmission ofsecurities toquotation ,relevant
procedural formalities should also "becoordinated .Themain points are
what supporting documents should beproduced showing that thesubstantive
requirements have been met ,their presentation orappearance ,requirements
astocertification ,thechoice oflanguages tobeused inthedocuments ,
etc .There isnodoubt that such coordination would beuseful ,since it
would mean that issuers seeking quotation onstock exchanges inseveral
Ileraber States would nothave tocope with formalities varying unduly widely
from one Member State toanother .
However ,apart from therules already laid down fortheprospectus
tobeissued onadmission toquotation ,itwasnotthought necessary to
attempt coordination ofthese details atthepresent stage ofwork ,since
procedural differences donotconstitute aserious obstacle totheinter­
penetration ofstock markets andsince itseems that their coordination *
cannot beusefully undertaken until thebasic conditions ,from which formal
procedures often derive ,arecoordinated more closely .
Itistherefore during thesecond phase ofharmonization that
ways andmeans should beconsidered ofcoordinating therequirements of
theMember States onprocedural foimalities relating totheadmission of ,
securities toquotation .
IV.Field ofapplication
A.Official quotation >
Asinthecase oftheprospectus tobeissued onadmission to
quotation ,theCommunity standard onconditions foradmission toquotation
should apply inrespect ofadmission toofficial quotation onastock
exchange ofaMember State ,regardless ofwhether itisamain orregional

\
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stock exchange .This standard ,however ,does notapply toparallel markets ,
whether ornot subject toregulation ,since thediversity ofsituations
existing here inthevarious Member States constitutes amajor obstacle
tothe extension ofthe standard tothese markets ,
• Securities affected
1, TheCommunity rules will normally apply toanyadmission to
quotation inaMember State ofsecurities issued bytheprivate orthepublic
sector ,national orforeign .
Itfollows that ,incontrast with theproposed directive concerning
theprospectus foradmission toquotation ,thefield ofapplication ofthe
Community standard covers debt securities issued bygovernments andby
regional andlocal authorities . .
However ,bearing inmind that ,on .theonehand ,inmost Member
States admission to .thenational stock exchange ofgovernment debt securities
isautomatic ,and ,secondly ,that theregulations governing theadmission
toanational stock exchange ofdebt securities issued byregional orlocal
authorities differ widely from oneMember State toanother ,itseemed hardly
feasible atthepresent stage ofwork tolaydown coordinated minimum
conditions foradmission toquotation onanational stock exchange forsuch
issues .Therefore ,conditions have been laid down only fordebt securities
issued byforeign governments ,whether they aregovernments ofMember States
oftheEuropean Communities ornot ,andtheir regional orlocal authorities .
2. Itshould further benoted that theCommunity standard will also
*.
apply todebt securities issued bypublic international organizations .'

3. .Lastly ,itwasfelt that thetime isnotripe toextend thefield
ofapplication oftheproposal foradirective tosecurities issued by
open-end collective investment undertakings ,whether investment companies
orunit trusts .Such coordination would bevery difficult toachieve since
thebackground against which these organizations operate varies agreat deal
from one Kember State toanother .These securities also fall outside the
scope oftheproposal foradirective ontheprospectus foradmission
toquotation .Itwould therefore seem advisable towait until 1:0rkiscomplete
onthecoordination oflegislation governing such .organizations ,andalso
until asales prospectus forthese securities ,which might also serve asa
prospectus foradmission toquotation ,isready ,before attempting to
coordinate "theconditions foradmission -toquotation oftheir ;securities * ;
V.General principles underlying the approach adopted
A.Conditions for admission
1. .The .Member States must Sake theadmission orintroduction of
securities toofficial quotation onastock exchange situated within
their territory subject totheconditions listed intheSchedules annexed
totheproposal ,fora.directive .
Soastosimplify their presentation ,theconditions have been
divided into thefollovang .twocategories :
(a)firstly ,theconditions which issuers andtheir securities must fulfil
before admission toofficial quotation isgranted .These conditions . ,
are .listed inSchedule Afortheadmission .ofshares andin .Schedule E
fortheadmission ofdebt securities }

-3-
(b)secondly ,theconditions orobligations towhich ,theissuer issubject
as'long ashisshares qualify forquotation ;defending ontheMember
State ,such obligations mayderive either from legal rules orfrom
undertakings entered into bytheissuer atthetime ofadmission to
official quotation ofhissecurities .These conditions arelisted
inSchedules CandD,forshares anddebt securities respectively .
These conditions ,asawhole ,have twoimmediate objectives ,
namely :
(a)theprotection ofsaving byensuring thesoundness oftheissuer and
theproper information oftheinvestor ?
(b).theregular operation ofthemarket byensuring inparticular that
securities admitted tooffioial quotation arefreely negotiable and
notunduly concentrated .
«■ » -j*. ' •..- J • » « .^ • •-»» -
However ,there aresome conditions andobligations for
which theproposal foradirective simply establishes theprinciple and
which will subsequently need more detailed treatment atCommunity level .
This isthecase ,fore::ample ,fortheobligation toprovide continuing'
information stipulated inSchedules CandDforissuers whose shares or
debt securities areadmitted toofficial quotation .Thedirective establishes
only theprinciple ofsuch compulsory information .Inview ofthecomplexity
ofthematter ,thecoordination ofinformation which hastobeperiodically
made available tothepublic ,inaddition totheinformation provided
forintheproposal forafourth directive ontheannual accounts of
joint stock companies *will bedealt with infuture work andin*a separate
proposal foradirective *Pending this directive ,thepractical application
oftheprinciple ofcontinuing information remains within thejurisdiction
ofeach Member State .
Zt Asalready indicated above ,theconditions provided forinthis
proposal foradirective areminimum conditions .Inother words ,the
Member States maymake theadmission ofsecurities to .official quotation

dependent onmore rigorous conditions oronadditional conditions ,subject ,
however ,tothefollowing tworestrictions .
■*Firstly ,anymore rigorous oradditional conditions applied "by
aMember State fortheadmission ofsecurities toofficial quotation on
'astock exchange situated within itsterritory must "beofgeneral
application andmust have been publicly brought into force prior tothe
request foradmission towhich they relate .
Secondly ,theproposal foradirective together with Schedules '
AandBprohibits Member States from imposing certain more -restrictive
oradditional conditions .Thepurpose ofthis rule istoavoid oneof
theobjectives ofthedirective ,namely theinterpenetration ofsecurities
markets ,being jeopardized bymeasures taken byoneoranother Member
State onapurely national level .Thus ,Article 6oftheproposal stipulate
that theMember States maynot ,asacondition foradmission ,require
securities tobequoted inanother Member State ,wether thecountry of
origin ornot .Similarly ,pursuant toSchedules AandB,theMember States
maynotimpose thefollowing conditions : .,
(a)require aforeseeable market capitalization ofmore than onemillion
units ofaccount where noregulated parallel market exists ;
(b)prohibit thedistribution ofsecurities tothepublic through
thestock exchangej . ■ .•,--

(c)requirethephysicalshape,substanceorappearanceofsecurities
issued.inotherMemberStatesto-.conformtonationalstandards *
3»The^proposalforadirectiveprovidesthattheMemberStatesshall
waiveapplicationofcertainconditionsorobligations wheredebtsecurities
tobeadmittedareissued "by;..«»
(a)publictodiesofaMemberStatewhichenjoyaStatemonopolyfor
theiroperations,suchasthepostoffice,railways,broadcasting
corporations ,etc.s
(T>):financialinstitutionsofaMemberStatewhich'issuedebtsecurities '
ontaporasrepeatissuesandsubjecttoapublic'statuteorto-
publiosupervision ". ...-*• ■
.•Similarly,theMemberStatesmaydecidenottoapplycertain
Conditionsfor"fcAe'admissiontffdebtsecurities -issued "byundertakings
whicharefromaMemberStateandwhose'borrowingsandinterestpayments
arefully,unconditionally andirrevocablyguaranteedbyaMemberState.
Lessstringentarrangementsforthesebodiesorundertakings
arejustifiedbythefactthattheythemselvesprovideadditional
guaranteesascomparedwiththeotherundertakings ,beingeithersubject
topublicsupervisionorguaranteedbyaMemberState.~
i
Methodsofcontrolandpowersofthecompetentauthorities
1*Forthepurposeofapplyingthedirective,theMemberStates
mustdesignateoneormorecompetentauthoritiestodecideonthe
admissionofsecuritiestoofficialquotationonastockexchangesituated
withintheirterritory.Theseauthorities maybeeitherpublicorprivate.
Iftheidecisionregardingadmissiondepends'oilseveralastufcoi'iiaas,the
respeotiv©functionsofeach-"of-theseauthorities mustbedefinedprecisely„

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Thecompetent authorities cannot admit asecurity toofficial
quotation until alltheconditions provided forbythedirective
aremet .Before authorizing admission tthey must therefore ensure that
theconditions arecomplied with .Forthis purpose ,theMember States : <,■
must invest them v/ithalltheauthority andallthepowers ofcontrol
necessary tocarry outthis task .Inparticular ,they must beempowered
torequire from anissuer alltheinformation andallthedocuments whioh
they judge necessary inorder todecide onarequest foradmission ,
including audit reports andother sworn statements .Similarly ,the
competent authorities must have theauthority necessary tocheck tjiat
anissuer fulfils theconditions required toqualify fortheexemptions
provided forinArticle 8ofthedirective . • <
2» Intheevent oftherejection ofanapplication foradmission ,
thecompetent authorities must give reasons forthis decision tothe
applicant . ; '
However ,theMember States mayempower thecompetent authorities ;
toturn down anapplication foradmission without giving reasons forthe ■
rejection totheapplicant .Such powers maybeused only forthepurpose
ofprotecting theinventor .
Similarly,' theMember States mayauthorize thecompetent authorities
tomake anapplication foradmission subject toanyspecial conditions ;
which they consider appropriate inorder toensure theprotection ofthe
investor andofwhich theapplicant hasbeen explicitly informed ,
i .This isinfact adiscretionary power ,which incertain conditions
* •> •- V f
enables thecompetent authorities whohave received anapplication to
refuse itormake stipulations invoking criteria other than those defined

.beforehand bytheMember State concerned .This type ofdiscretionary
power exists inallMember States .In -theinterest oftheinvestor .
andofthesmooth operation ofthemarket ,there isacase forretaining
it|atleast forthetime being ,because itenables situations tobe
dealt vith ofakind that aredifficult toforesee andconsequently
scarcely susceptible ofprior regulation .Moreover ,thecompetent
> «
authorities must inform thecontact group .-setupbythedirective ofany
decision toturn down anapplication foradmission taken against
securities issued inaMember State ,giving reasons ,andthis rule should
Btrongly curtail anypossible dangers ofabuse ofpowers inthis field .
3. Apart from thepowers necessary fordecisions onadmission to
official quotation ,thedirective confers certain other powers onthe
authorities ofthe Member States .
Thus ,thecompetent authorities must inform thepublic ,complying
tiith appropriate warning procedures ,where theissuer isnotrespecting
theobligations incumbent upon him 0.3arooult *ofthoadniscion ofhis
securities toofficial quotation .
Similarly ,the comp$tefet authorities must request from issuers
ofquoted securities allthe ,information which they consider necessary
toensure theprotection oftheinvestor orthesmooth operation of
themarket .
Finally ,thecompetent authorities maysuspend quotation if
this isrequired fortheregular operation ofthemarket orisinthe
public interest .Incertain circumstances ,they may -even discontinue
quotation ,altogether .

-13–
Intrie 'interests ofthepublic protection oftheinvestor ,
ithas also been felt desirable that theMember States should
authorize thecompetent *authorities toestablish official quotation
ofsecurities even though noapplication hasbeen made .This power
maybee::ercieed where there isinfact amarket intherelevant
security andwhere themajor interest ofpresent orfuture shareholders
requires that transactions relating tothese securities should be
subject tothedisciplines and .controls associated with official
quotation .
VI.Cooperation betreen Member States and the creation ofaContact
Committee
Aswith theprospectus foradmission toquotation ,itwas
judged desirable ,with aview tofacilitating theinterpenetration of
national securities markets ,andpromoting harmonized application ofthe
directive ,tomake collaboration between theMember States compulsory
incertain cases andtosetupaContact Committee ,composed of
representatives oftheMember States andoftheCommission .Clearly
defined powers areconferred ontheContact Committee ,these powers
being ,however ,inoneparticular case wider than those oftheContact
Gr®up provided forbytheproposal foradirective ontheprospectus
foradmission toquotation ;theContact Committee will actasaregulating
committee inadjusting ,inthelight oftheeconomic situation ,the
minimum market capitalization provided forinthefirst paragraph
ofSchedule A,point I2.Theprocedure provided forthealteration
ofthis amount should allow theamount tobeadjusted fairly quickly .

Proposalforadirective
.coordinating theconditionsfortheadmissionofsecurities
...toofficialstockexchangequotation
THECOUNCILOFTHEEUR0FEA1JCOMMUNITIES,
'<'" ?HavingregardtotheTreatyestablishing theEuropean'Economic •
Communityand,InparticularArticle.-54(3)(g)»•.!•»•
HavingregardtotheProposalfromtheCommission ^
HavingregardtotheOpinionoftheEuropeanParliament;
,^_HavingregardtotheOpinionoftheEconomicand:SocialCommittee }
WhereastheSix^hCouncilDirectiveHo*.*»of•«.».'orithe-
coordination ofthesafeguardsrequiredintheMemberStatestdprotect
theinterestsbothofmembersandofthirdpartiesconcerning'thecontent,
checkingand.distribution oftheprospectustobepublishedvhensecurities
issuedbycompanieswithinthemeaningofthesecondparagraphofArticle58
oftheTreatyareadmittedtoofficialstockexchangequotation,andtfie
CounpilRecommendation ,ofthesamedate,haveastheirobjectthealignment
ofthesafeguardsprovidedfortheprotectionoftheinterestsofinvestors;
wherpasthey,arealsodesignedto..facilitatetheadmissionof'securities
fromthesameissuertoofficialquotationonseveralstockexchanges
situatedinthevariousMemberStates,andwhereas,therefore,they
contributetowardstheestablishment ofaEuropeancapitalmarket;'
Whereasthecoordination oftheconditionsfortheadmirsioncr
introduction ofsecuritiestothesameofficialquotationonstockexchanges
hasthesameobjectivesandthereforefollowslogicallytheintroduction
ofaCommunityprospectusforadmissiontoquotation;

Whereas thecoordination issuch astomake equivalent the ' '
protection ofinvestors atCommunity level ,byvirtue ofthemore uniform
safeguards which itwill provide forthem ineach Member State ;whereas
itwill facilitate theadmission toofficial quotation ofsecurities
originating inother Member States andthe .quotation ofthesame security
onseveral stock exchanges intheCommunity ;whereas consequently itwill ,
allow greater interpenetration ofnational securities markets :
••»
whereas during theinitial stage thecoordination should be :
sufficiently flexible totake account ofthecurrent divergences between
thestructures ofsecurities markets intheMember States ;:whereas such .
flexibility is,,moreover ,necessary toenable theMember States totake
account oftheparticular situations with which they would beconfronted ;
Whereas for these reasons harmonization should belimited in
this first stage totheestablishment dfminimum conditions fortheadmission
ofsecurities toofficial quotation onstock exchanges ofMember States }
Whereas although this proposal therefore does notprovide for ,
full coordination oftheconditions foradmission toquotation ,itnever­
theless constitutes a.'first stfcp towards subsequent closer alignment
oftheregulationsoof the -Member .States inthis field }
HAS ADOPTED THIS DIESCTIVE ;

Section IjGeneral provisions andfield ofar>plication
The Member States shall make the admission orintroduction of
securities toofficial quotation onastock exchange situated viithiri
theii ?territory subject tQ-iUe^toroyigions ofArticles 3to19inclusive
ofthisdirective . ^ K.­
•' " ■•'*';4V V ^
V-.' ' » •
Article 2 ' .
*•'. Forthepurposes ofthis directive :>
»
(a)"open-end collective investment undertakings "shall mean investment
companies andunit trusts whose securities areorhave boon issued -
continuously orinclosely spaced blocks and/orareattherequeist
oftheholderB repurchased ,orredeemed ,directly orindirectly ,from
theassets ofthese undertakings ! ', .
(b)''closed investment companies "shall mean investment companion other ,
than those referred toin(a)abovej
(c)'iunit ofaccount "shall mean theunit ofaccount asdefined bythe
decision oftheCommission of18December 1975 (l)*
Article 3
1, Securities issued byopen-endcollective investment under­
takings shall notfall within thescope ofthi3 directive ., , .
1r■" 11 1 1
o.J .•»••••r

-4-
2. This directive shall also not relate totheadmission ofsecurities
issued byaMember State oritsregional andlocal authorities to
official quotation onastock exchange situated within theterritory
ofthat Member State . . .
Article 4
1. Theadmission ofsecurities toofficial stock exchange quotation
shall besubject totheconditions listed inSchedules AandB,annezjed
tothis directive ,which relate toshares anddebt securities respectively .
2. Theissuers .ofasecurity admitted ,to .official quotation shall
observe theobligations listed inSchedules CandD,annexed tothis
directive ,which relate toshares anddebt securities respectively .
3. Certificates representing shares maybeadmitted only ifthe
issuer oftheshares represented fulfils theconditions provided for
inSchedule A,points 1.1to1.3andifthecertificates representing -
theshares fulfil theconditions provided forinSchedule A,points II.1
tcII.6.
4. Theissuers ofcertificates representing shares admitted to
official quotation shall ensure that theobligations provided forin
Schedule C,points 2to3»axeobserved andprovide ,ontheshares
represented andtheir issuer ,alltheinformation required bySchedule C,
points 3to6.
1. Subject totheprohibition provided forinArticle 6andthose
provided forinSchedules AandB,theMember States maymake the
admission ofsecurities toofficial quotation subject tomore rigorous
conditions than those listed inSchedules AandBortoadditional

conditions ,provided that they areofgeneral application andthat
they have teen publically "brought into force prior totherequest for
admission toofficial quotation towhich they relate# -
2. TheMember States may ,within thesame limits asthose provided
forinparagraph 1above ,make theissuers ofasecurity admitted to
official quotation subject .tomore rigorous obligations than those listed
inSchedules CandDortoadditional obligations . " \
" _• *1 .•,.. ... .. '*'' ' > -' ■ . »
Article6
The Member States shall not make the admission toofficial
quotation ofsecurities subject tothecondition that these securities
beadmitted toofficial stock exchange quotation inaMember State .
Article 7
.1 ■ . ' '
Where !aMember State applies -oneofthe ,optional derogations
provided for 'inSchedules AandBtotheconditions foradmission to
official quotation listed there ,this application shall begeneral *->
Article 8
1* . .TheMember Stat® shall waive application ofthe .conditions
provided forinSchedule B,'Section A.I (legal position oftheunder­
taking -capacity oftheundertaking tomeet itscommitments )where a
,-requept foradmission toofficial quotation -ismade fordebt securities
issued byr

(a)public bodies ofaMember State which enjoy aState monopoly
intheexercise oftheir activi-tiesj *.■«'f>■■■ ...
''''V -t■'-V;-:•' Z -:•; v •••*... •:
(b)financial institutions ofaMember State which issue ontap
* • • -V. • - , .* »..• •
orasrepeat issues debt securities admitted toofficial quotation ,
- .oncondition that .these financial institutions aresubject to.a
public statute .orto-public supervision ensuring theprotection ..
-of;theinvestor# .. ..... ,... .
2.^ ,TheMember -States may -waive application oftheobligation
prpvided forunder .Schedule D,.point A.3.(continuing information )
vrhere anapplication foradmission toofficial ,quotation ismade for
debt securities issued bythebodies orinstitutions referred toin
paragraph 1above . .. . ,.
3. TlieMember States maywaive application oftheconditions
provided forunder Schedule B,Section A.I (legal position ofthe
oompany -capacity tomeet itscommitments )andoftheobligations
provided forunder Schedule D,points A.2,A.3andA-.4 (alteration of
thqmemorandum orarticles of'association -Continuing ,information <-
additional information )where anapplication foradmission toofficial
quotation ismade fordebt securities issued byundertakings which are
from aMember State andwhose borrowings andinterest payments are fp.lly ,
unconditionally andirrevocably guaranteed byaMember State . ■
4,. Where aMember .State applies oneoftheoptional derogations
prpvided forinparagraphs 2and3above ,this application shall be
general . "cfeh.' '
Section II:Methods ofcontrol andffoyjrei^s ofthecompetent authorities .
' ■■■ ■■ .■* '*U"■■ v^... v. '■ ■ x--'
1. TheMember States' shall desiaaate thecompetent "national authority
I"
orauthorities todecide ontheadmission ofsecurities toofficial quotation
onastock exchange situated within their territory .They shall inform the
Commission accordingly !indicating ,ifappropriate ,howthepowers have
been allocated . >' ■

-7-
2. Thecompetent authorities mayadmit asecurity toofficial
quotation only vrhere they axesatisfied that atleast all .therequirements
imposed "bythis directive arecomplied with , ' .
3. Thecompetent authorities shall beinvested with alltheauthority
ar.dallthepowers ofverification necessary fortheir work .They shall
have inparticular theauthority torequire theissuer forwhose securities
admission toofficial quotation issought ,tofurnish anyinformation
andproduce anydocuments andcertificates which they consider necessary
inorder todecide onthis application .Forthesame purpose ,they shall ,also
"beempowered torequire anyaudits orinspections which .they ,consider
appropriate .They must also have authority tocheck that anissuer meets the
conditions provided forinArticle 8ofthis directive with aview to
obtaining theexemptions provided forinthat Article ....
Article 10 ••
1. In .theevent oftherejection ofanapplication foradmission of
asecurity toofficial quotation ,thecompetent authorities shall give
explicit reasons forthis decision totheapplicant .
2. Each Member State shall provide foraright ofappeal tothecourts
against adeoision torefuse anapplication .
Article 11
Notwithstanding Articles 5 10respectively ,theMember States
may invest thecompetent authorities with powers ,tobeinvoked only for
*;hepurpose ofprotecting the irivestorj
(a)■nmake anapplication fortheadmission ofasecurity toofficial
T110'ationsubject toanyspecial condition which they consider appropriate
ando?which theapplicant hasbeen explicitly informed ;

-8-
(b)toreject anapplication fortheadmission ofasecurity toofficial
quotation without giving explicit reasons fortherejection tothe
applicant .
Article 12
Thecompetent authorities maynotadmit toofficial quotation
asecurity already officially quoted inanother Member State ,where the
issuer isfailing tocomply \<rith theobligations resulting from admission
inthat other Member State .
Thecompetent authorities shall inform thepublic "where anissuer
ofofficially quoted securities isfailing tocomply with theobligations
resulting from admission .
1. feecompetent authorities shall request anissuer whose securities
areadmitted toofficial quotation toprovide them without delay with all
theinformation which they consider appropriate inorder toprotect the •
investor andensure thesmooth operation ofthemarket .The issuer shall be
required toprovide this information tothecompetent authorities .
2.; 'Inthecase referred toinparagraph 1above and ,more generally ,
r 4
where the competent authorities consider that particular circumstances
resulting from thesituation oroperations oftheissuer orfrom .the
.1
.dealings inhisofficially quoted securities require certain information to
bepassed ontothepublic ,they shall invite theissuer topv.blish this
information intheform andwithin thetime-limits which they consider
appropriate and ,ifnecessary ,shall actinplace oftheissuer soasto
ensure such publication under conditions ofprofessional secrecy .

9-
Article 15
1. ...Thecompetent authorities maysuspend aquotation ,where the
smooth operation ofthemarket isormay "become temporarily jeopardized ,
orwhere such suspension isinthe interest oftheinvestor .
2. Thecompetent authorities maydiscontinue aquotation altogether ,
where they are convinced that ,because ofparticular circumstances ,
normal andregular dealings intherelevant security arenotpossible .
Article 16
Thecompetent authorities may ,inexceptional cases ,establish
official quotation ofasecurity trithout application where there is:infact
amarket inthesecurity ,ifitisintheinterest oftheinvestor tomake
therelevant dealings subject tothedisciplines andcontrols ofofficial
quotation .
Article 17 .•/.* -1
, .Where application foradmission relates tocertificates ,representing
shares ,theapplication shall beconsidered only ifthecompetent .authorities
take the .view that theissuer ofthese certificates provides proper safe­
guards fortheprotection oftheinvestor .
Section III :Methods ofpublishing the information tobemade available
tothe .public « .
Article 18
1. Theinformation which issuers ofasecurity admitted toofficial
quotation onastock exchange .situated within aMember State arerequired
tomake available to -thepublic inaccordance with theprovisions of

-10-
Schedules CandDshall bepublished inoneormore newspapers distributed
throughout thecountry orshall bemade available tothepublic inthe
form ofnotices tobedisplayed inplaces indicated byannouncements
tobepublished inoneormore newspapers distributed throughout the
oountry .
2. Theinformation referred toinparagraph 1above shall bepublished
inthelanguage orlanguages oftheMember State inwhich this information
must bemade public .
Section IV:procedures forcooperation betvreen Member States
Article 19 ;
1. V*here official quotation ofasecurity isapplied forsimultaneously
inrespect ofseveral stock exchanges situated indifferent Member States ,
thecompetent authorities oftheMember States concerned shall establish
between themselves allthecontacts necessary toensure maximum coordination
oftheconditions andformalities required fortheadmission ofthesecurity
concerned .
9 ' '
2. Inthe event ofanapplication being made fortheadmission to
official quotation onastock exchange situated within aMember State of
asecurity admitted toofficial quotation inanother Member State ,the
competent authorities oftheMember State where therequest ismade shall
contact thecompetent authorities oftheMember State inwhich thesecurity
isalready quoted ,with theaims ,inparticular *ofsimplifying asfaras
possible theconditions andformalities required fortheadmission of
thesecurity concerned andofensuring that theissuer carries outthe
obligations incumbent upon himbyvirtue oftheadmission ofthat security
toofficial :quotation ....
if:
3. Intheevent ofadmission toofficial quotation onastock exchange
situated within aMember State being sought forasecurity forwhich admission
toofficial quotation onastock exchange situated within another Member State
liasbeen refused ,thecompetent authorities oftheMember State inwhich the ,
application hasbeen made shall askthecompetent authorities intheother
Member State togive thereasons forthis refusal .Thecompetent authorities
questioned shall communicate these reasons without delay jthereasons shall be -■
communicated insuch awayastocomply with therequirements ofprofessional
secrecy .

Whereofficialquotationofasecurityisappliedforsimultaneously
inrespectofseveralstockexchangessituatedindifferentMemberStates,
anycompetentauthority ^.intendingtorefusetheapplicationshall
withoutdelayinformthecompetentauthoritiesoftheotherMemberStates
concernedofthisintentionandofthereasonsforit}thereasonsshall
becommunicated insuchawayastocomplywiththerequirements of
professional secrecy.
4Inordertoallowthecompetentauthoritiestoexercisethepowers
ytovidedforinthisArticle,anyapplicantfortheadmissionofa
iecuritytoofficialquotationonastockexchangesituatedwithina
.emberStatemuststatewhetherasimilarapplicationisbeingorhas
jlreadybeenmadeinanotherMemberState.
Ï
BectionVîContactCommittee
■■■■"ny"111 ■■»
î;
Article20
1.AContactCommitteeshallbesetupattaohedtotheCommission.
Itsfunctionshallbe:
(a)tofacilitate ^withoutprejudicetotheprovisionsofArticles169and
170oftheEECTreaty,harmonizedapplicationofthedirectivethrough
.regularmeetingsdealinginparticularwithpracticalproblems
arising}
*b)tofacilitatetheestablishment ofaconcertedattitudebetweenthe
MemberStatesonthemorerigorousoradditionalconditionsand.
obligationswhichtheymayrequirepursuanttoArticle5ofthis
directiveandontheinformationreceivedbytheCommissionpursuant
toArticle22}
c)toadvise,ifnecessary,theCommissiononthesupplements,amendments
oradjustmentstobemadetothedirectivepursuanttoArticle21.

2. TheContact Committee shall "becomposed ofrepresentatives of
theMember States and .representatives oftheCommission .TheChairman
shall bearepresentative ofthe Commission .TheCommission 'sservices
shall provide theSecretariat .
3. TheCommittee shall beconvened bytheChairman ,either onhisown
initiative orattherequest ofoneofthemembers .
Article 21 ■ .•'•
•1. Forthepurpose ofadjusting ,inthelight oftherequirements of
theeconomic situation ,theminimum market capitalization provided forin
thefirst paragraph ofSchedule A,point I,2,therepresentative .ofthe
Commission shall submit totheCommittee proposals forthemeasures tobe
taken .TheCommittee shall deliver itsopinion within theperiod laid down
bytheChairman .Itsdecisions shall require forty-three votes infavour ,
thevotes oftheMember States being weighted asprovided forinArticle 14
oftheActconcerning theConditions ofAccession andtheAdjustments
tothe Treaties .
2. v(a)TheCommission shall adopt themeasures envisaged where these
areinaccordance with theopinion oftheCommittee .
(b)Where themeasures envisaged arenotinaccordance with the
opinion oftheCommittee orwhere theCommittee hasnotdelivered an
opinion ,theCommission shall without delay laybefore theCouncil a
proposal concerning themeasures tobetaken .TheCouncil &all actbya
qualified majority .
(c)Uhere theCouncil fails toactwithin three months ofreceipt
ofaproposal ,themeasures proposed shall beadopted bytheCommission .
Article 22
1. Thecompetent authorities shall berequired toinform theCommission
ofanydecision ,together with thereasons ,torefuse anapplication for
admission toofficial quotation onastock exchange situated within their
territory ofasecurity issued within another Member State .

-13-
2.TheCommissionshallinformtheContactCommittee
Thedeliberations oftheCommitteeonthemattershallbe
obligationofprofessional secrecy.
SectionVI:Finalprovisions
/
Article23
1.Withintwelvemonthsofnotification tothemofthisdirective,
theMemberStatesshallputintoeffectallmeasuresnecessaryfor
complyingwithitsprovisionsandshallinformtheCommissionimmediately
ofsuchmeasures * - -
2.TheMemberStatesshallcommunicate totheCommissionthetexts
oftheessentialprovisionsofnationallawvrhichtheyadoptintheareas
coveredbythisdirective.
Article24
ThisDirectiveisaddressedtotheMemberStates.
FortheCouncil
ThePresidentofthisrefusal,
coveredbythe

-'14- ΑΠΊ2ΧI
SCHEDULE A
COITDITIOI' rSFORTHEADIilSSIOIT OFSHAPESTOOFFICIAL
OFTHEBUEOFEAII CQMTIUITITIES
I.ConditionsrelatingtocompaniesforwhosesharesQuotationissought
1.Leralpositionofthecompany .
Thelegalpositionofthecompanymustbeinconformitywiththe
lav;sandregulationstowhichitissubject,aSregards "bothitsformation
anditsoperationunderthememorandumandarticlesofassociation ,-.
Proofthatthisconditionisfulfilledneednot"beprovided
wheresecuritiesofthecompanyarealreadyofficiallyquotedonthesame
stockexchange. ,..
2.Minimumcapitalofcompany
Hieforeseeablemarketcapitalisation ofthesharesfor"hich
admissionissought,or,ifitisimpossibletoestablishthisamount,the
netassetsofthecompanymustbeatleastonemillionunitsofaccount*
MemberStatesmay,however,bywayofderogationfromthefirst
paragraph,providethatsharesmaybeadmittedtoofficialquotation ,■
evenv:hentheconditionlaiddowninthatparagraphisnotfulfilled,,
providedthatthecompetentauthoritieshaveascertainedthatthere .
willbeanadequatemarketfortheseshares.

*•15-
Ahigher expected market capitalisation orhigher netassets
mayberequired "byaMember State foradmission to ;official quotation
only ifanother regulated ,-recognized andopen market exists inthis State
which operates normally andhasless stringent requirements inthis
matter than those referred tointhefirst paragraph *
Thecondition "laid down inthefirst paragraph isnotapplicable
inthecase oftheadmission toofficial quotation of-afurther block of c
shares ofthesame class asthose already admitted .- •
... , '• > . ■: , . ';'
3«The company *^profit-making capacity
Thecompany must give proof ofitsprofit-making capacity for
theprevious tvioclosed financial years andprovide satisfactory evidence
that itwill maintain aprofit-making capacity forthecurrent financial
year andthefollowing financial year#
Intheevent oftheconversion ,merger ,splitting up .orre- :
organization ofcompanies ,theprofit-making capacity asdefined inthe
first paragraph isassessed inthelight ofthesituation ofthecompany
orcompanies involved inthese transactions and/orthesituation ofthe
compajiy orcompanies resulting from thetransactions .
Member States may,however ,notwithstanding thefirst paragraph ,
provide that shares issued byacompany maybeadmitted toofficial
quotation even when theconditions laid down inthat paragraph arenot
fulfilled *
' /.>'•
(a)where thecompany hasnotyet ■made upaccounts fortwo financial
years butisable toprovide satisfactory evidence that itwill have
aprofit-making capacity forthecurrent financial year andthe
following financial year j
(b)where thecompany ,because ofthenature ofitsactivities ,will nothave
.aprofit-making capacity until themore distant future ,butisable to
provide satisfactory evidence th'bt itwill realize this profit-making
potential } ' ,
(c)inthecase ofaclosed investment company .

-16- \
Theexceptionsprovided ,forat(a)and(is)abovemaynotbe
allowedtoyMemberStates ,inwhichanotherregulated,recognizedandopen
marketexists -whichoperates"normallyandwhoserequirements asregards
profit-making capacitydonotpreventthesharesinquestionbeing
admittedtothismarketfthisdoesnotapplyifthecompanyshotrsthat
itcannotraiseitscapitalotherthanbyhavingitssharesadmitted
toofficialquotationandthatitisinthepublicinterestthatthe
capitalberaised. '
Theconditionslaiddowninthefirstparagrapharenotapplicable
inthecaseoftheadmissiontoofficialquotationofafurtherblockof
sharesofthesameclassasthosealreadyadmitted.
II,Conditionsrelatingtothesharesforwhichquotationissought
Legalpositionoftheshares
Thelegalpositionofthesharesmustbeinconformitywiththe
lawsandregulationstowhichtheyaresubject.
2.negotiability oftheshares
Thesharesmustbefreelynegotiable.
,MemberStatesmaytreatasfreelynegotiableshares,shareswhich
arenotfullypaidup,ifarrangements havebeenmadetoensurethat
negotiabilityofthesesharesisn<>thamperedanddealingismade
transparentbyprovidingthepublic ,with,allappropriateinformation.
Forshareswhichmaybeacquiredonlysubjecttoapproval*Member
Statesmay,bywayofderogationfromthefirstparagraph,admitthem
to.officialquotationonlyiftheuseoftheapprovalclausedoesnot
interferewithdealing.

I3«Publieissueprecedinc :admission
Int*iepas©ofpubliciasue.precedingadmissiontopfficial-.
quot^tipri,"thefirst'quotationmaybemade-only.aftertheclosureof.^
th<?periodduringv;hichapplicationforsubscription maybesubmitted.,,,
4*distribution ofshares' .•;>...
Asufficientnumberofsharesmustbedistributedtothepublic
intheMemberStateinwhichadmissiontoofficialquotationisapplied
'for,atthelatestatthetimeofadmission..
Thisconditionisnotapplicablewherethesharesinquestion •
are-tobedistributedtothepublicthroughthestockexchange*Inthis
case,admissiontoofficialquotationmay;begrantedonlyifthecompetent
authorities areconvincedthatasufficient ..numberofshareswillbe
distribute^through "thestockexchangeifithinashortperiod.*"''''''
%''''v-.'J., _ (> ...
Vjheireadmissiontoofficialquotationissoughtforafurther-
blocjcofsharesofthesameclass,thecompetentauthorities mayassess
whetherasufficientnumberofshareshasbeendistributedtothepublic
byreferencetoallthesharesissuedandnotonlythisfurtherblock.
Wherethesharesinquestionarealreadyofficiallyquotedin
oneormorepthorStates,MemberStatesmay,'bywayofderogationfromthe
firstparagraph,admitthesharestoofficialquotationifasufficient
numberpfsharedisdistributedtothepublicinatleastoneofthe
Statesinwhichthesharesareofficiallyquoted.
Shareswillnotbedeemedtobedistributedinsufficientnumber
ifthesharesofthesameclassheldbythepublic?donotrepresent -at*
least25%ofthesubscribedcapitalofthecompany.However,Member -
Statesmayauthorizethecompetentauthoritiestoconsiderthata
sufficientnumberisdistributedevenifthispercentageisnotattained,

-18-
where ;ixtview ofthelarge number ofshares of "thesame class and
■theextent oftheir distribution tothepublic ,they feel that the
market will operate properly with this lower percentage .
-5»Quotation ofshares ofthe same class •
Theapplication foradmission toofficial quotation must befor
all'theshares of -thesame class already issued .
Bywayofderogation from thefirst paragraph ,Member States may
provide that thecondition laid down inthat paragraph does notapply
toapplications foradmission notcovering alltheshares ofthesame ,
class ,where theshares ofthis class forwhich admission isnotsought
belong toblocks serving tomaintain control ofthecompany orarenot
negotiable foracertain time under agreements ,provided that the
public isinformed ofsuch situations andthat there isnodanger of
prejudicing theinterests oftheholders oftheshares forwhich
admission issought .
6.Physical shape ,substance orappearance
Forshares issued bycompanies from another Member State ,it
isnecessary andsufficient that their physical shape ,substance and
appearance comply with thestandards laid down inthis other Member State .
Where thephysical shape ,substance orappearance donotconform tothe
provisions inforce intheMember State inwhich quotation isapplied
for,thecompetent authorities ofthis State will make this known to
thepublic .
Thephysical shape ,substance andappearance ofshares issued
"bycompanies from non-member States must besuch astoensure that
investors' interests aresafeguarded .

1,Quotationin-thecountryof-origin.or,inthecountry''inwhich,r:
thema.iorproportionofthesharesisheld.
''• C"i•
Sharesofcompaniesfromnon-memberstatesmusthavebeen
admittedtoofficialquotationeitherinthecountryoforiginor
inthecountryinwhichthemajorproportionofth6sharefri6:helcU*
MemberStatesmay,however,bywayofderogationfromthefirst:
4 •
paragraph,providethatsharesmaybeadmittedtoofficialquotation
evenwhentheconditionlaiddowninthatparagraphisnotfulfilled,
providedthatthecompetentauthorities haveascertained .that1;hereason
whythesharesarenotquotedinthecountryoforiginor.inthe
countryinwhichthemajorproportionis.heldisnottheneedtoprotect
theinterestsofinvestors.

-20-
MITEXII
SCHEDUIE B•••'■
COKDITIOITS FORTHEADMISSIOIT OFDEBTSECURITIES
TOOFFICIAL Q.UOTATIOH OFSTOCKEXCHANGES OF
MEMBERSTATESOFTHEEUROPEANCOMMUNITIES "
A.Admissiontoofficialquotationofdebtsecuritiesiseaed "byanundertaking
I.Conditionsrelatingtoundertakings forwhosedebtsecurities ,>
quotationissought
1•Legalpositionoftheundertaking
Thelegalpositionoftheundertaking roust"beinconformitywith
thelavisandregulationstowhichitissubject,asregardsbothits
formationanditsoperationunderthememorandumandarticlesofassociation.
Proofthatthisconditionisfulfilledneedriotbeprovidedwhere
securitiesoftheundertakingarealreadyofficiallyquotedon,thesame
stockexchange.
2.Capacityoftheundertakingtomeetitscommitments
Theundertakingmustprovidesufficientevidencethatitisable
tomeetthecommitmentsresultingfromtheissueoftheloanstockfor
whichquotationissought.
II.Conditionsrelatingtothedebtsecuritiesforwhichquotationis
sought . .
"1«Legal'positionof-debtsecurities '• ''":-r
Theissueconcernedmustconformtothelawsandregulations
towhichitissubject.

2.ITerotiability ofdebtsecuritiesl|1'■«■»■■*»■■■" I1
Thesecuritiesmust"befreelynegotiable#
MemberStates''may'Treat"S3 'ffeGly 1negotiablesecurities,securities
whicharenotfullypaictup,'"if'arrangements "ha^e-been'made' toensure
thatnegotiability ofthe'ses^dtiritiesishof'hampered-and' dealingismade
transparent byprovidingthepublicwithallappropriateinformation.
** '*-«V....,' •: . •. '•'>*'•*"
•• kv •V■>t "-'
3«Fublic.issueprecedingadmission
Inthecaseofpublicissueprecedingadmission.toqfficigl ,quotation,
thefirstquotationmaybemadeonlyaftertheclosure ,.oftheperiod,
duringwhichapplicationsforsubscription maybesubmitted.Thisprovision
isnotapplicableinthecaseoftapissuesofdebtsecuritieswhenthe
closuredateofthesubscription periodisnotfixed.
4»Distribution ofdebtsecurities
Asufficient ,numberofsecuritiesmustbedistributedtothe,public,
intheMemberStateinwhichadmissiontoofficialquotationisapplied.,
for,atthelatestatthetimeofadmission.
Thisconditionisnotapplicablewherethesecuritiesinquestion
aretobedistributed tothepublicthroughthestockexchange ♦In
thiscase,admissiontoofficialquotationmaybogranted"onlyifthe
competentauthoritiesareconvincedthatasufficientnumberofsecurities
willbedistributedthroughthestockexchangewithinashortperiod*
:w......, •••'■'•.>..•••..-^*••
Whereadmissiontoofficial (Rotationissoughtfordebtsecurities
issuedontaporasrepeatissuesby.financialinstitutions,thecompetent
authorities mayassesswhetherasufficientnumberofsecuritieshasbeen
distributedtothepublicbyreferencetoalithesecuritiesissuedand
notonlythenewissue.

22
VJherethesecuritiesinquestionarealreadyofficiallyquoted
inoneormoreotherStates,MemberStatesmay,notwithstanding thefirst
paragraph,admitthesecuritiestoofficialquotationifa'sufficient
numberofsecuritiesisdistributedtothepublicinatleastoneofthe
Statesinwhichthesecuritiesareofficiallyquoted.; .-.-V
1• f
Securitieswillnotbedeemedtobedistributed insufficient
numberif"thesecuritiesrelatingtothesameloanissueandheldbythe
publicdonotrepresentatleast25$oftheamountoftheissue.However,
MemberStatesmayauthorizethecompetentauthoritiestoconsiderthata.
sufficientnumberisdistributed evenifthispercentageisnotattained,
where,inviewofthelargenumberofsecuritiesrelatingtothesame
loanissueandtheextentoftheirdistribution tothepublic,theyfeel
thatthemarketwilloperateproperlywiththis'lowerpercentage.
'5*QuotationofdebtsecuritiesrelatingtothesameloanisBue^
Theapplicationforadmissiontoofficialquotationmustbeforall
thesecuritiesrelatingtothesameloanissue.i-
6.Physicalshape,substanceandappearanceofdebtsecurities
1.Forsecuritiesissuedbyundertakings fromanotherMember .State,it
isnecessaryandsufficientthattheirphysicalshape,substanceand
appearance com;,lywiththestandardslaiddowninthisotherMemberState.
I'Jhcrethephysicalshape,7substanceor'appearancedonotconformtothe
provisionsinforceintheMemberStateinwhichquotationisappliedfor,
thecompetentauthoritiesofthisStatewillmakethisknowntothepublic.
2.However,thephysicalshape,substanceandappearariceofsecurities
issuedinasingle'MemberStatemustconformtothestandardsinforce
inthisMemberState..
3.Thephysicalshape,substanceandappearanceofsecuritiesissuedby
undertakings fromnon-memberStatesmustbesuchastoensurethat
investors'interestsaresafeguarded.

-23•-
Ill,Otherbonditions *v••••• •-v.
1.Minimumamountoftheloan
Theamountoftheloanmaynotbeless.than200000unitsofaccount.
Thisprovisionisnotapplicableinthecaseoftap.issueswheretheamount
oftheloanisnotfixed,
•2•Convertible debenturesordebentureswithwarrantsattached
Convertibledebenturesordebentureswithwarrantsattachedmay....
beadmittedtoofficialquotation'onlyiftherelatedsharesaxe:already
quotedonthesamestockexchangeoraretobeadmitted .simultaneously ..■
""However',MemberStatesmay,;notvxithstanding thefirstparagraph,;
providefortheadmissiontoofficialquotationofconvertibledebentures
ordebentureswithwarrantsattachedevenwhentheconditionlaiddown
inthatparagraphisnotfulfilled,pro.vided ,thatthecompetentauthorities
haveascertainedthatholders .haveattheirdisposalalltheinformation
necesrarytoformenopinionconcerningthevalueofthesharestowhich
thesedebenturesrelate,wherej
(a)whenthedebenturesare"admitted'toofficial'quotation,theseshares
areAlreadyofficiallyquotedonanotherstockexchangein-thesame
MemberState,oronastockexchangeinanotherMemberState,orona
stockexchangeinanon-memberState,providedthatthislatterstqck
exchange,intheviewofthe"competentauthorities,offersinvestors
everyguarantee;'or
(b)althoughthesesharesarenotofficiallyquotedwhenthedebentures
areadmittedranapplicationforofficialquotationwillbemade,
notlaterthantheopeningdateofthe,conversionorsubscription
period,intheMemberStateinvjhichtheapplicationforthe.
admissionofthedebenturestoofficialquotationismadeandthe
competentauthorities .haveascertainedthatnoobstacleexiststo
theirsubsequentadmissiontoofficialquotation.

-24-
B.Admission toofficial quotation ofdebt securities issued "by •thecentral
governments orregional orlocal authorities ofanother State orbya
j'V^l^cTintcrr^j-or ialor/ranization •
1.Capacity tomeet commitments resulting from theloan
Central governments ,regional orlocal authorities andpublic
international organisations must provide sufficient evidence that they are
able tomeet thecommitments resulting from theissue cttheloan stock
forwhich admission toquotation issought . .
Proof that this condition isfulfilled need notbeprovided by
Ilemter States . ;
Heraber States may ,notwithct anding paragraph 1,provide that the
condition laid dc.-m inthat paragraph does notapply tonon-member States
andpublic international organizations ,where their competent authorities
have ascertained that these issuers offer investors every guarantee .
2.ITeroti ability ofdebt securities
Thesecurities must befreely negotiable .
3,publi cissue jjrcceàing admissio n
Inthe'case ofpublic issue preceding admission to -official ,■
quotation ,thefirst quotation maybemade only after theclosure ofthe
period during which applications forsubscription maybesubmitted .This
provision isnotapplicable where theclosure date ofthesubscription
period isnot fi:c6d . •'
4*Distribution ofdebt securities ,
Asufficient number ofsecurities must bedistributed tothe .
public intheMember State inwhich admission toofficial quotation is
anpliod for,attheiatest atthetime ofadmission . -v

-25
Thisconditionisnotapplicablewherethesecuritiesinquestion
aretobedistributedtothepublicthrough ,thestockexchange.Inthi6.
case,admissiontoofficialquotationmay.begrantedonly,iftheccmt>etex:t
authorities areconvinced .thatasufficientnumberofsecuritieswillbe*
distributedthroughthestockexchangewithin.ashortperiod.
Wherethesecuritiesinquestionarealreadyofficiallyquotedin.
oneormoreotherStates,MemberStatesmay,bywayofderogationfromthe
,firstparagraph,admitthesecuritiestoofficialquotationifasufficient
numberofsecuritiesisdistributedtothepublicinatleastoneofthe
Statesin-whichthesecuritiesareofficiallyquoted.
Securitiestrillnotbedeemedtobodistributed insufficient number
ifthesecuritiesrelatingtothesameloanissueandheldbythepublic
donotreprecentatleast25%oftheamountoftheissue.However,Meraber .
Statesmayauthorizethecompetentauthoritiestoconsiderthr/fcasufficient .
number,isdistributed evenifthispercentageisnotattained,where,in
viewofthelargenumberofsecuritiesrelatingtothesameloanissue
andtheertentoftheirdistributiontothepublic,theyfeelthatthe
marketwilloperateproperlywiththislowerpercentage..
5*Quotationofdebtsecuritiesrelatingtothesameloanissue
Theapplicationforadmissiontoofficialquotationmustbefor
allthesecuritiesrelatingtothesameloanissue.
6.Physicalshape,substanceandappearanceofdebtsecurities
Forsecuritiesissuedbythecentralgovernmentorregionalor
localauthoritiesofaMemberState,itisnecessaryandsufficientthattheir
physicalshape,substanceandappearancecomplywiththestandardslaiddown
inthatMemberState.Wherethephysicalshape,substanceorappearancedoes
notconformtotheprovisionsinforceintheMemberStateinwhichquotation
isappliedfor,thecompetentauthoritiesofthisStatewillmakethisknown
tothepublic.

26-
Thephysical shape ,substance orappearance ofsecurities
issued "bythecentral government orregional orlocal authorities ofa
non-member State or "byapublic international organization must "besuch
astoensure thatinvestors' interests aresafeguarded . ' ' '

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i,
f A1TIIEXIII
SCHEDULE C
OBLIGATIOITS OFCOMPARES WHOSESHAKESAREADMITTED""
TOOFFICIALQUOTATIONOil'ASTOCKEXCHAITGE
OFAMEMBERSTATSOPTHEEUROFEAIT COMMUNITIES '
C>i'otc,tionofnowly;issuedsharesofthesameclass
WithoutprejudicetotheprovisionsofScheduleA,II,5»paragraph2,
inthecaseofanewissueofsharesofthesameclassasthosealready
officiallyquoted,thecompanyisrequiredtoapplyforadmissiontothe
sameofficialquotationforthesenewshares,eitherayearaftertheir
issueatthelatestorwhenthey"becomefreelynegotiable.
2.Treatmentofshareholders
(a)Thecompanymustensurethatholdersofsharesofthesame
classaregivenequaltreatmentinrespectofalltherightsattaching
totheseshares.Thisdoesnotpreventlimits "beingplacedonthenumber
ofvotesthatanindividualshareholder mayhaveatthegeneralmeeting
undernationallawsorthememoran&tun andarticlesofassociation ofthe
company.■
(b)ThecompanymustensurethatoneachstockexchangeinaMember\
Stateon\tfhichitssharesareofficiallyquoted,alltheneoessary
information andfacilitiesareavailablewithoutanycosttoshareholders,
toenablethesetoexercisetheirrights.Inparticular,itmust:
-enableshareholderstovotebyproxy;
-publishnoticesconcerningtheallocationandpaymentofdividends,the
holdingofmeetings,theissueofnewshares,allotment,subscription ,
renunciation andconversionoperations;

ν28-
-designateasitsagentafinancialinstitutionatwhich,shareholders
mayexercisetheirfinancialrights.
3.Alterationofthememorandumorarticlesofassociation
(a)AcompanyfromaMemberStateplanningtoalterits
memorandumorarticlesofassociation mustcommunicatetheplansofsuch
alterationstothecompetentauthoritiesofthisMemberStateifits
sharesarequotedthereor,otherwise,tothoseoftheMemberStateinwhich
themajorproportionofitssharesareofficiallytraded.
Acompanyfrom.anon-memberStateplanningsuchalterations
mustcommunicatetheplanstothecompetentauthoritiesoftheMember
State,inwhichthemajorproportionofitssharesareofficiallytraded.
(b)Theseplansmuatbecommunicatedtothecompetentauthorities
atthelatest'..lienthegeneralmeetingv.'hichistodecideontheproposed
alterations ofthememorandum orarticlesofassociationiscalled.
4.Continuin#information
Thecompanymustperiodically ,andhalf-yearlyatleast,make
availabletothepublicsufficientinformationtoenablethepublicto
evaluatetheassetsandfinancialpositionofthecompanyandthegeneral
progressofitsbusiness,withoutprejudicetothepublicationoftheannual
accountsandannualreport,andconsolidated accountsandannualreportofthe
group,asrequiredbynationallaw.
5.Additionalinformation
Thecompanymustinformthepublicwithoutdelayofmajor
newdevelopmentsinitssphereofactivitywhicharenotpublicknowledge
andwhichmay,byvirtueoftheireffectonitsassetsandfinancial
positionoronthegeneralprogressofitsbusiness,leadtolargemovements
inthepricesofitsshares.

-29-r
;<*'y*,-»»»
(b)Thecompanymustinform^tfiepublicwithoutdelayofany'
changesintherightsattachingtothevkriousclassesofshaires.'
(c)Thecompanymustinforra 1the,public..of,.any,changesinthe*.■',*
informationpublishedpreviouslyonthestructureofthemajorholdings
ofitscapital,assoonas.suchchangescometoitsnotice.
- '" V•
6.Equivalence ofinformation
(a)Acompanyvchosesharesareofficiallyquotedonstock
exchangesindifferentMemberStatesmustensurethatequivalentinformation
ismadeavailabletoeachofthesemarkets.":
(b)Acompanywhosesharesareofficiallyquotedonstockexchanges
inoneormoreMemberStatesandinoneormorenon-memberStates,must
makeavailabletothemarketsoftheMemberStateorStatesinwhichits
sharesarequotedthesameinformationasisavailabletothemarkets
ofthenon-memberStateorStatesinquestion. .

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AEITTXIV
SCHEDUffiD..
P3LIGATI0ITS OFISSUERSKHOSEDEBTSECURITIES ARE.ADMITTED
•TOOFFICIALSiUOTATIOIT PITASTOCKEXCHATGEOFA
KEI-TBIDESTATEOFTIIEEUEOFEAIICOMMUNITIES
A.Debtsecuritiesissued "byanunder-taking
Treatmentofholders
(a)Theundertakingmustensurethatallholdersofsecuritiesrelating
tothesamelorJiissuearegivenequaltreatmentinrespectofallthe
rightsattachingtothesesecurities .
("b)TheundertakingmustensurethatoneachstockexchangeinaMember
Stateonwhichitsdebtsecuritiesarcofficiallyquoted,allthe
necessaryinformation andfacilitiesareavailablewithoutanycostto
holders,toenablethesetoexercisetheirrights.Inparticular,itmust:
–publishnoticesconcerningtheholdingofmeetingsoftheholders
ofdebtsecurities,thepaymentofinterest,theexerciseofany
conversion,subscription orrenunciation rights,andredemption ?
-designateitsagentafinancialinstitutionatwhichtheholders
ofdebtsecurities mayexercisetheirfinancialrights.
\
2.Alterationofthememorandumorarticlesofassociation
(a)AnundertakingfromaMemberStateplanningtoalteritsmemorandum
orarticlesof-association mustcommunicatetheplansofsuchalterations
tothecompetentauthoritiesofthisMemberStateifitsdebtsecurities
arequotedthereor,otherwise,tothoseoftheMemberStateinwhich
themajorproportionofitsdebtsecuritiesareofficiallytraded.

r"31-
Anunderta king from anon-member conn-try planning such
alterations must communicate theplans 'to^hts -competent authorities ofthe
Member State inwhich themajor proportion ofitsdebt securities are
officially traded . :• •
(b)These plans must becommunicated' tothe :competent ,authorities
atthelatest when thegeneral meeting which istodecide ontheproposed
alterations ofthememorandum orarticles of .association iscalled *
3*Continuing information
Theundertaking must periodically ,andhalf-yearly atleast ,
make available tothepublio sufficient information toenable thepublic
toevaluate theassets andfinancial position oftheundertaking andthe
general progress ofitsbusiness ,without prejudice tothepublication
oftheannual accounts andannual report ,andconsolidated accounts and
annual report ofthegroup ,asrequired bynational law.
A4Additiohal information 1 1 ;
Ν
,(a)Theundertaking must inform thepublic without delay ofmajor
newd.evelopments initssphere ofactivity which arenotpublic knowledge
andwhich may ,byvirtue oftheir effect onitsassets andfinancial
position oronthegeneral progress ofitsbusiness ,lead tolarge
movements -intheprices ofitsdebt securities .Asregards index-linked
debt securities andthose whose interest rate depends onagiven parameter
theundertaking must also publish information about theapplication of
theindex-linked criteria andoftheparameter fordetermining the .••.;
interest rate .
(b)Theundertaking must inform thepublic without delay ofnew '
loan issues andinparticular ofguarantees they maycarry , ,

-32-
(c)Where thedebt securities officially quoted areconvertible
debentures ordebentures with warrants attached ,theundertaking must
inform thepublic without delay cfanychanges intherights attaching
tothe various classes of .shares .
5.Ecruival ences ofinformation
(a)Anundertaking whose debt ,securities areofficially quoted
onstock exchanges indifferent Member States must ensure that .
equivalent information ismade available toeach ofthese markets ,. ,
(b)Anundertaking whose debt securities areofficially quoted
©nstock exchanges inoneormore Member States ,andinoneormore
non-member States ,must make -available tothemarkets oftheMember ,
State orStates inwhich itsdebt securities arequoted ,thesame ,
information asisavailable tothemarkets ofthenon-member State or
States inquestion * :
B.Debt securities issued bythe central government orregional orlocal
authorities ofaforeign State orbyapublic international organization .
1.Treatment ofholders
(a)Central governments ,regional orlocal authorities andpublic
international organizations must ensure that allholders ofsecurities
relating tothesame loan issue aregiven equal treatment inrespect of
alltherights attaching tothese securities .
(b)Central governments ,regional orlocal authorities andpublic
international organizations must ensure that oneach stock exchange in
aMember State onwhich their debt securities areofficially quoted ,all
thenecessary information andfacilities areavailable without anycost
toholders ,toenable these toexercise their rights .Inparticular ,
they must :

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-publishnoticesconcerning -theholdingofmeetingsoftheholders
ofdebtsecurities ^thepayment'ofinterestandredemptions
-designateaetheiragentafinancialinstitutionatwhich .theholders .
ofde"btsecuritiesmayexercisetheirfinancialrights.-•.
2.Equivalence ofinformation ;•,-•:
(a)Centralgovernments,regionalorlocalatthoritiesfindpublic
international oigsniNationswhosedebtsecuritiesareofficiallyquoted .
onstookexchangesindifferent :MemberStatesmustensurethat-equivalent
.informationismadeavailabletoeachofthesemarkets*
. \
(b)Centralgovernments,regionalorlocalauthoritiesandpublic
international organizations whosedebtsecuritiesareofficially ■
quotedonstockexchangesinoneormoreMemberStatesand,inoneor.
morenon-memberStates,"mustmakeavailabletothemarketsoftheMember
StateorStatesinwhichtheirdebtsecuritiesarequoted,..thesame,
information asisavailabletothemarketsofthenon-memberState
orStatesmquestion.- ,/
"*** **.•••'*•*■' •.. A.*„.