A Securities Company (SC) is a professional institution operating in the securities market with a special license to perform one or a combination of the following activities: brokerage, dealing, investment advisory, and underwriting.

An SC with a brokerage license acts as an intermediary, participating in trading on behalf of its clients and by their instructions, enabling investors to trade on the Mongolian Stock Exchange. In contrast, dealing activity involves participating in trading using the firm’s own capital.

An Investment Advisor conducts research and analysis based on a securities issuer’s publicly available information and provides professional advice to clients regarding the purchase or sale of securities. An Underwriter provides professional services for the public offering of securities based on a contract established with the issuer.

You can open accounts with different securities companies and participate in trading. Furthermore, it is entirely possible to transfer your securities balance from one securities company to another. To do this, you must submit a request to the securities company from which you wish to transfer your assets.

Mongolian citizens can open a securities account either online or in person by visiting our branch.

For Adults (18+):

• Online: Visit https://trader.tdbsecurities.mn/auth, select the "Open 1072 Account" menu, and complete the form in Cyrillic to successfully open your account.
• In-person: Visit any of our branches with a valid National ID card.

For Minors (Children):

• An account can be opened by providing the child's Birth Certificate and the National ID of their legal guardian.

For Foreign Citizens:

• Foreign nationals must visit in person and provide a valid Passport along with other relevant supporting documents.

To open a securities account, both domestic and foreign legal entities must complete the 'Corporate Account Opening Request' form. After the request is submitted, our broker will contact you to provide details on the required documents and other relevant information.

If you are unable to visit a securities company branch in person, you may authorize a third party to open an account on your behalf via a Power of Attorney.

Mongolian Citizens: When opening a securities account from abroad, you may submit the required documents directly; an Apostille certification is not required.

Foreign Citizens: To open an account, required documents must be either notarized by a Mongolian diplomatic mission (Embassy or Consulate) in your country of residence or authenticated with an Apostille certificate.

An individual is permitted to open accounts with up to 5 different Securities Companies (SCs). Therefore, even if a citizen already has an account with one firm, they are eligible to open additional accounts with other SCs and participate in trading.

A securities account is typically opened within 1–2 business days after the request is submitted.

To participate in trading, you must visit our branch in person with the required documents to sign a 'Master Agreement.' By establishing this agreement, you will be authorized to participate in both domestic and international securities markets, enabling you to engage in all future trading activities online or remotely.

A trading commission is a fee calculated based on the total transaction value when you buy or sell securities. [View Fee Schedule]. This commission includes fees for the Financial Regulatory Commission (FRC), the Stock Exchange, the Securities Settlement Center, and the brokerage firm.

The commission for international stock trading is 1% of the total transaction value, with a minimum fee of $25 (or the equivalent in MNT). For international bond trading, the commission is 0.5% of the total transaction value. Please click [here] to view the detailed fee breakdown.

You can place your domestic and international trading orders in two ways:

1. In-Person: Visit our company branch in person with the required documents to participate in trading through a broker.

2. Remotely or Online: By logging into the TDB Trader application, you can place your domestic and international orders by following these steps:

• Go to the "New Order" section.
• Search for the security you wish to trade.
• Click the "Buy" or "Sell" button.
• Enter the Order Condition, Unit Price, and Quantity.
• Click the "Place Buy Order" button to confirm; your order will then be successfully registered.

Mongolian Stock Exchange (MSE):  Weekdays 10:00 AM – 1:00 PM

Ulaanbaatar Securities Exchange (UBX):  Weekdays 10:00 AM – 3:00 PM

The trading schedules for major global stock exchanges (in Ulaanbaatar time) are presented below. Please participate in international trading according to the specific hours of your market of interest.

*The United States adjusts its clocks on the second Sunday of March and the first Sunday of November. Consequently, winter and summer trading hours will change accordingly as shown above.

TDB Securities LLC provides direct access to international markets through the Interactive Brokers platform. This allows our clients to trade across 160 markets in 36 countries and conduct transactions in 28 different currencies. If a security you are interested in is not currently listed, please contact your broker to submit a request to add it to the platform.

If you wish to purchase stocks traded in currencies other than USD, you must first fund your international securities nominal account and complete the necessary currency conversion. Once the conversion is processed, you will be able to participate in your selected currency's market. (Please note that a minimum commission of $25, or its equivalent in the respective currency, will apply)

If you are using the TDB Trader application or logging in through https://trader.tdbsecurities.mn/ Access your SCHCD (Securities Clearing House and Central Depository) account, click the 'Withdraw' button, and submit your withdrawal request by entering your personal bank account details.

You can receive your funds by visiting our office in person or remotely via the TDB Trader application or https://trader.tdbsecurities.mn/.

For remote withdrawals: Access your International Securities Nominal Account, click the 'Withdraw' button, and submit your request by entering your bank account details. (Please note: USD withdrawals are only available to Trade and Development Bank (TDB) accounts. However, MNT withdrawals can be made to any local bank)

Withdrawal requests are typically processed within one business day.

You can participate in trading over 12,000 securities across more than 160 countries available on the IBKR platform. If the security you are interested in is not currently listed, you may contact your broker to request its addition.

After logging into the TDB Trader app or the trader.tdbsecurities.mn website using your credentials, navigate to the ACCOUNT menu and select the DEPOSIT section. Choose the appropriate account type based on the market listed in the table below. Your securities account will be funded once you transfer the amount to the designated account, ensuring the transaction remarks follow the provided instructions.

To resolve a deposit issue, please contact your broker during business hours and provide your full name, registration number, the name of the bank used for the transfer, and the transaction description. Once these details are verified, the funds will be manually credited to your securities account.

To reset your password, navigate to the “Login” section and select the “Forgot Password?” option. Enter your registered securities account number or email address, then click the "Continue" button.

A One-Time Password (OTP) verification code will be sent to your registered email address. Once you enter this code, you will be able to set a new password. Your new password must meet the following requirements:

• Must be at least 8 characters long.
• Must include a combination of numbers, uppercase letters, and lowercase letters

If you enter your password incorrectly three (3) consecutive times, your account access will be automatically locked. In this case, you can reactivate your account through the following methods:

• By Phone: Call us at 7010 0261 using your phone number registered with the company.
• By Email: Contact us at info@tdbsecurities.mn to request an account unlock.
• In Person: Visit our office in person with your valid ID/Passport to verify your identity and restore access.

o view your account information, please navigate to the "Account" or "Orders"  menu, where you can access the following sections:

• My Securities – To view your current holdings.
• Order History  – To track your previous buy and sell orders.
• Securities Statement  – To view your detailed transaction history.

You can request an official securities account reference letter by visiting our office in person or by sending your request via email to info@tdbsecurities.mn.

A stock is a security certifying that the holder has invested in a company and, on that basis, is entitled to participate and vote in shareholders' meetings, receive dividends, claim a share of the proceeds from the sale of remaining assets upon the company's liquidation, and exercise other rights provided by law.

A bond is a security certifying that the issuer (the borrower) owes the holder (the investor) a debt and is obligated to pay interest (the coupon) and repay the principal amount at a later date (maturity).

An Asset-Backed Security (ABS) is a debt instrument which is backed by a specific pool of underlying assets that generate regular cash flows. These assets are typically illiquid on their own but are transformed into tradable securities through a process called securitization.

After logging into the TDB Trader application or the trader.tdbsecurities.mn website, navigate to the ACCOUNT menu and select the DEPOSIT section. Choose the appropriate account based on the market you wish to participate in:

After logging into the TDB Trader application or the trader.tdbsecurities.mn website, navigate to the ACCOUNT (ДАНС) menu and select the DEPOSIT (ОРЛОГО) section. Choose the appropriate account based on the market you wish to participate in:

According to the T+2 settlement system, the proceeds from your stock sale will be credited to your main balance on the second business day following the transaction. Once credited, you can submit a withdrawal request to transfer the funds to your registered bank account.

However, if you wish to continue trading, you do not need to wait for the funds to reach your main balance. You may use your available balance to execute new trades immediately.

• Transactions of 20 million MNT or less: Processed on business days between 09:00 and 16:00.
• Transactions exceeding 20 million MNT: Transferred to your registered bank account within 1–2 business days.

After selling your international shares, you can receive your funds by visiting our office in person or by requesting a remote transfer to your registered bank account (transferable only to an account held in your own name).

You can access information on publicly traded bonds by logging into our trading platform or the TDB Trader app under the "Open Bonds" (Public Bonds) section. To participate in public bond trading, please ensure your nominal account is funded before placing an order.

If you are interested in private placement bonds (closed bonds), you may visit our branch in person or contact a broker at 7010-0261. Our brokers will assist you in discussing investment amounts and terms, and detailed information will be sent to you via email.

• For Public (Exchange-traded) Bonds: You must fund your Nominal Account (Securities Account) to execute the purchase.
• For Private (OTC) Bonds: You should first receive a calculation from your broker. Based on that calculation, you must fund your MSCD (Mongolian Securities Central Depository) account.

1. For Public (Exchange-traded) Products:To purchase products from the public market, log in to our trading platform at https://trader.tdbsecurities.mn/auth.

• Navigate to Orders -> Domestic Order.
• Search for your desired bond or Asset-Backed Security (ABS) by entering its ticker symbol.
• Enter the execution condition, unit price, and quantity to submit your order.

2. For Private (OTC) Market Products:To purchase products from the Over-the-Counter (OTC) market, you can place an order by visiting us in person, contacting us via email, or calling 7010-0261. Our brokers will provide you with bond details, and financial calculations, and assist you in submitting your trade request.

Important Notice: Please be advised that to participate in the OTC (Over-the-Counter) market, you must meet the Professional Investor criteria set by the Financial Regulatory Commission (FRC).

1. International Bonds

• Definition: Debt instruments issued by the Government of Mongolia and private corporations on international capital markets.
• Face Value: 100 USD per unit. (Please note that the market price of international bonds fluctuates constantly based on various factors, including interest rate changes, inflation rates, supply and demand, the issuer's credit risk, and global economic conditions).
• Listing: Primarily traded on major international financial hubs such as the Singapore (SGX), Hong Kong (HKEX), and London (LSE) Stock Exchanges.
• Key Valuation Factors:
  • Credit Rating
  • Liquidity
  • Foreign Exchange (FX) Risk
  • Global Interest Rate Environment

2. Domestic Bonds

• Definition: Securities issued within the domestic capital market of Mongolia.
• Face Value: Typically ranges between 100,000 MNT and 1,000,000 MNT.
• Trading Channels: Traded via the Mongolian Stock Exchange (MSE) or the Over-the-Counter (OTC) market.

These shares of "Erdenes Tavantolgoi" JSC were initially distributed to approximately 2.5 million citizens following a 2011 Mongolian Government resolution. The primary objectives were to ensure that every citizen benefits from the nation’s natural resources and to enhance public financial literacy by encouraging participation in the securities and capital markets.

As of today, all citizens born before January 1, 2024, are holders of 1,072 shares.

If an organization intends to issue securities, please contact the Investment Banking Department of TDB Securities SC to receive detailed information or to schedule a consultation.

To ensure a productive meeting, we recommend preparing the following information in advance:

• Financial Statements (Financial information)
• Proposed Funding Amount (Estimated capital to be raised)
• Use of Proceeds (Allocation of the raised funds)

Contact Details:

• Phone: +976 7010 0261 (Monday–Friday, 09:00 AM – 05:00 PM)
• Email: info@tdbsecurities.mn

Securities Issuance Process and Timeline

The process and required timeline for issuing securities vary depending on the type of security and the issuer's state of preparation.

• Public Offering (Exchange-traded): Average of 3–6 months.
• Private Placement (Over-the-Counter / OTC): Average of 1–3 months.

The costs and expenses associated with issuing securities vary depending on the type of security, the issuance amount, and the specific exchange or trading platform where it is registered.

During the issuance process, commissions, fees, and service charges are payable to the following regulatory bodies:

• Financial Regulatory Commission (FRC)
• Trading Organization (Stock Exchange)
• Mongolian Securities Central Depository (MSCD)
• Key participants and service providers involved in the issuance process include:
  • Uderwriter (Lead manager)
  • Auditing Firm
  • Legal Counsel
  • Appraisal/Valuation Company (if required)
  • Credit Rating Agency (if required)

Detailed information regarding commissions and fees related to securities issuance is available in our dedicated handbook.

The following taxes apply to the income of taxpayers derived from securities in Mongolia:

1. Public Market (Primary & Secondary)

• Interest and Dividend Income: 5% Tax

2. Over-the-Counter (OTC) Market

• Interest and Dividend Income: 10% Tax

3. Capital Gains from the Sale of Securities

• A 10% tax is levied on income earned from the sale of securities on the public market.
• However, a tax incentive (exemption) is applicable until 2029.

Tax on income derived from the sale of debt instruments (bonds), stocks, and other securities traded openly on the domestic primary and secondary markets shall be calculated as follows:

• 2024–2026: A 90% tax discount is applied, resulting in an effective 1% tax rate on realized gains.
• 2027–2029: A 50% tax discount is applied, resulting in an effective 5% tax rate on realized gains.

The following types of income and instruments are exempt from official taxation:

• Government and Municipal Securities: Payments, interest, and penalties related to debt instruments (bonds) issued by the Government of Mongolia, the Capital City (Municipality), and the Development Bank of Mongolia.
• National Wealth Fund Dividends: Dividends as specified in Article 11.1.2 of the Law on the National Wealth Fund.
• Sovereign Wealth Funds: Income allocated from the state budget to the Future Heritage Fund, the Accumulation Fund, and the Development Fund, as well as any investment returns generated by these funds.
• Investment Fund Income: Operational and investment income earned by Investment Funds.
• Income of Persons with Disabilities: All personal income earned by an individual with a disability.

2nd Floor, Trade and Development Bank Headquarters, Peace Avenue 19, 1st Khoroo, Sukhbaatar District, Ulaanbaatar 14210, Mongolia

Monday-Friday:        09:00 AM – 05:00 PM
Saturday - Sunday:  Closed

Phone: +976 7010 0261, 7010 0263 (Monday–Friday, 9:00 AM - 5:00 PM)

Email: info@tdbsecurities.mn

Facebook: https://www.facebook.com/tdbsecurities

Instagram: https://www.instagram.com/tdb_securities/

X: https://x.com/TDB_Securities

Youtube: https://www.youtube.com/@tdbsecuritiessc6358/featured

LinkedIn: TDB Securuties

Wechat: TDB Securuties

To transfer your securities, please submit an official application to your designated brokerage firm. Upon receipt, the application will be forwarded to the Securities Central Depository (SCD) for verification. Once confirmed, your securities balance will be transferred to your account at the selected firm within 1–2 business days.