In accordance with paragraph 7 of Article 5 of the Law “On the Central Securities Depository”, NSD has the Central Securities Depository Customer Committee (the “Committee”).
The Committee has 28 members elected by NSD’s Supervisory Board in accordance with the requirements set out in the Regulations on the Committee.
In order to elect new Committee members, NSD publishes a notification about launching the process of nominating candidates to the Committee on NSD’s website.
The Supervisory Board establishes an Interim Commission to review nominations and compile a list of candidates to the Committee for the Supervisory Board.
On 23 April 2024, in accordance with the Interim Commission’s recommendations, the Supervisory Board elected new members of the Committee pursuant to the requirements of the Regulations on the Committee for a term of one year, with effect from 24 April 2024.
To ensure fair representation of different client categories in the Committee, the Supervisory Board used the Methodology of NSD’s Clients (Securities Holders) Classification for the Purposes of Election of the Central Securities Depository Customer Committee, as set out in the appendix to the Regulations on the Committee approved by the Federal Antimonopoly Service of Russia and the Bank of Russia. The Methodology had also been used when electing the Committee in 2018-2023.
The Methodology is based on the following principles:
- clients are categorized into different groups depending on their securities balances at NSD and the scope of their transactions; and
- each client group has the right to be represented in the Committee.