Erste Bank JPMorgan Merrill Lynch International

THE PRAGUE STOCK EXCHANGE
The following information about the Prague Stock Exchange (also the “Exchange”) comes from
the Prague Stock Exchange, in particular from the website of the Prague Stock Exchange
(www.pse.cz) and from the website of UNIVYC, a.s. (www.univyc.cz). The website of the Prague
Stock Exchange contains more extensive information about the Prague Stock Exchange and provides
special services such as viewing securities prices and ad hoc notices from listed companies. The
information contained on that web site is not part of this Prospectus. The following discussion of the
provisions of Czech capital market law merely provides a summary of the most important Czech
provisions relating to the acquisition and trading of Wiener Städtische shares. This summary is not an
exhaustive description of all of the provisions of Czech capital market law, and investors should also
consult with their own legal advisors.
The Prague Stock Exchange is operated by Burza cenny´ch papíru˚ Praha, a. s., (“BCPP”) which
is organized in the form of a stock corporation (akciová společnost) pursuant to legislative mandate. In
addition to a securities exchange, BCPP also controls Energetická burza Praha, an operator of an
energy exchange. UNIVYC, a.s. (“UNIVYC”) is a wholly-owned subsidiary of BCPP providing settlement
services for exchange and OTC trading.
The Prague Stock Exchange is supervised by the Czech National Bank (Česká národní banka).
Under the National Bank Act (zákon č. 6/1993 Sb., o České národní bance), the Czech National Bank
is responsible for financial market supervision in the Czech Republic.
The main regulator of the capital markets in the Czech Republic used to be the Czech Securities
Commission. Pursuant to Act No. 57/2006 Coll., on the Amendment of Acts in connection with the
Integration of Financial Market Supervision, the Czech Securities Commission ceased to exist on
31 March 2006 and the role of the market regulator was transferred to the Czech National Bank (the
central bank of the Czech Republic) as of 1 April 2006.
The Czech National Bank has also taken over the activities of the Office for Supervision over
Insurance Companies and Pension Funds, previously established at the Ministry of Finance, and the
activities of the Office for Supervision over Credit Unions. As a result, the Czech National Bank now
has the role of an integrated regulator and supervisor in the areas of banking, foreign exchange
regulation, capital markets, insurance, pension funds and credit unions.
In its role as an integrated regulator, the Czech National Bank now issues bank licenses,
supervises compliance with applicable laws and regulations by banks and other financial market
professionals, governs Czech monetary policy and issues the respective licenses. It also supervises
insurers, pension funds and credit unions, and performs all the activities of the former Czech
Securities and Exchange. As the market and stock exchange supervisory authority, the Czech
National Bank is responsible for monitoring compliance with reporting obligations in respect of financial
instruments subject to mandatory reporting, supervising market participants, investigating and prosecuting
violations of the insider trading ban and the market manipulation ban, ensuring order and
fairness in securities trading, investigating and prosecuting price manipulation, supervising the
Exchange in accordance with the National Bank Act, and supervising issuers and stockholders in
respect of their disclosure obligations.
The markets of the Prague Stock Exchange
BCPP organizes the regulated securities market in the Czech Republic. Under the Capital Market
Trading Act (zákon č. 256/2004 Sb., o podnikání na kapitálovém trhu), the regulated market is divided
into two main markets: the Official Market and the Special Market for investment instruments other
than securities (e.g. futures). The Official Market further divides into the Main Market and the Official
Free Market.
In order for a company to have its equity securities admitted to an official market (including the
Prague Stock Exchange main market or official free market), the following principal criteria must
ordinarily, among other, be satisfied: (i) the securities to be admitted must be fully paid and must be
tradable without any restrictions; (ii) the minimum issue value must be at least EUR 1 million; (iii) the
minimum free float must be at least 25%; (iv) the issuer shall have published its financial statements
for at least three preceding years or, if shorter, the period of its existence; and (v) a prospectus
describing the business activities and financial standing of the issuer and approved by the Czech
National Bank or the respective EU member state regulator must be published.
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