Ref. No. 19683 dated 22 June 2023
To NSD's clients
In accordance with the decision of NSD's Executive Board dated 19 June 2023, National Settlement Depository (NSD) announces the extension of its marketing periods during which no service fee is charged:
1. from 01 July 2023 to 31 December 2023 inclusive of the marketing period, during which no fee is charged for services related to the transfer of securities of Russian issuers with the transfer of ownership of the holder of such securities, the rights to which are recorded by a international securities depository (clause 4.1 of the NSD's Fees for Depository Services), for transactions made using Foreign Nominee Accounts opened with NSD, as well as Russian nominee accounts, for the transfer of Russian issuers' securities with the transfer of ownership rights of the holder of such securities, the rights for which are recorded by a foreign securities depository, and subject to the following condition:
- this is the transfer of securities under counter instructions of the Sending Client (or the securities account/sub-account operator) and the Receiving Client (or the securities account/sub-account operator) without cash settlement (Transaction Code 16 and 16/1), where "Transfer of Russian securities kept by the foreign depository, with transfer of ownership" must be specified in the Additional Information field of the instruction. Such a comment means an assurance by the client that there is a foreign nominee holder (a person who has the right under personal law to record rights to securities) in the chain of title.
The marketing period shall apply including to type "C" securities accounts, provided that transactions conducted in accordance with this clause, comply with legal requirements, including regulations of the Bank of Russia and decisions of the Board of Directors of the Bank of Russia, and official explanations of the Bank of Russia..
2. In particular, from 1 July 2023 through 31 December 2023, when no fee is charged for the transfer of Russian securities without the transfer of ownership to such securities recorded by a foreign depository ,(item 4.1 of NSD's Fee Schedule for Depository Services), if the following conditions are met at the same time:
- This is the transfer of securities between securities accounts on instruction of the sending client without confirmation of the receiving client (transaction code 10), or transfer within the same securities account on counter instructions from the client who holds the account and from the operator of the section of the same securities account without the cash settlement, or transfer on counter instructions from the sending client and the client receiving the securities without the cash settlement (transaction code 16 and 16/1);
The marketing period shall apply to the following transactions, including transactions in type "C" securities accounts, subject to compliance with legal requirements, including regulations of the Bank of Russia, also decisions of the Board of Directors of the Bank of Russia as well as official explanations of the Bank of Russia, and subject to the requirements set out below:
- transactions involving the submission by NSD's client of an instruction regarding to its nominee securities account to debit Russian securities to any type of securities account, if the Additional Information field of the instruction contains the following: "Transfer from an account opened with an international securities depository without a change of ownership of the securities".
- Transactions involving the submission by a foreign nominee client to NSD of an instruction in the client's securities account with NSD to debit securities of Russian issuers from such account for crediting to any securities account with "Transfer from an account opened with an international securities depository without a change of ownership of the securities" being indicated in the Additional Information field of the instruction..
- Transactions related to the submission of a securities instruction with respect to a holder account opened in the name of a non-resident to transfer securities to a nominee holder account with wording "Transfer from a foreign holder account to a securities account with another Russian securities depository without changing the ownership" indicated in the Additional Information field of the instruction.
The marketing period applies to transactions carried out using foreign nominee accounts and foreign holders' accounts opened with NSD, as well as Russian nominee accounts if there is an international depository in the chain of custody.
3. From 1 June 2023 to 31 December 2023 inclusive, during which no service fees will be charged for:
- acceptance of securities for safekeeping and/or recordkeeping through international securities depositories, other than CIS countries depositories, on FOP and DVP terms (paragraphs 12.1 and 12.2 of NSD's Fee Schedule for Depository Services);
- withdrawal of securities from safekeeping and/or recordkeeping registers through international securities depositories, other than CIS countries depositories, on FOP and DVP terms (paragraphs 13.2 and 13.3 of NSD's Fee Schedule for Depository Services).
4. From 1 June 2023 to 30 December 2023 inclusive, during which no fee is charged for transferring shares from/to the Securities Represented under Depositary Programs section of the securities account for their subsequent crediting to securities accounts on instruction of the client receiving the shares to its account.
If you have any enquiries regarding this communication, please contact your account managers at NSD by phone: +7 495 956-27-90, +7 495 956-27-91.