Ref. No. 29766 dated 7 December 2023
To NSD's clients
Pursuant to the decision of NSD's Executive Board dated 6 November 2023, NSD announces the extension of marketing periods (i.e. that no service fees are charged) for the following services until 31 December 2024:
1. participation of a person exercising rights on securities in corporate actions, in accordance with clauses 5.2-5.5. NSD Fees for Depository Services, provided that the following conditions are simultaneously met:
- securities transactions are concluded with non-resident investors who will be entitled to sell the securities of Russian issuers as part of an offer to purchase them by a resident issuer;
- securities transactions have been authorised by the Government Commission;
- the client provided NSD, not later than the last business day of the reporting month, with a list of corporate action instructions ("CA") falling within the marketing period, where the following information must be indicated:
- the number and date of the CA instruction;
- CA Reference;
- Government Commission authorisation date.
2. services related to the transfer of securities of Russian issuers with the transfer of ownership of the holder of such securities kept by an international securities depository (clause 4.1 of the NSD Fees for Depository Services), for transactions made using Foreign Nominee Securities 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 kept by an international 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.
3. transfer of Russian securities without the transfer of ownership to such securities kept by an international securities depository (clause 4.1 of NSD Fees 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 and 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 the 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 shall apply to transactions carried out using foreign nominee securities accounts and foreign holders' accounts opened with NSD, as well as Russian nominee securities accounts if there is an international depository in the chain of custody.
4. Acceptance of international securities for safekeeping and/or recordkeeping through international securities depositories, other than CIS countries depositories, on FOP and DVP terms (clauses 12.1 and 12.2 of NSD Fees for Depository Services)
5. Withdrawal of international securities from safekeeping and/or recordkeeping through international securities depositories, other than CIS countries depositories, on FOP and DVP terms (clauses 13.2 and 13.3 of NSD Fees for Depository Services).
6. Transfers of shares to/from a sub-account "Securities represented under depositary receipts programs" of the securities account for their subsequent crediting to securities accounts on the instruction of the client to whose securities account the shares are to be credited (clause 4.8 of NSD Fees for Depository Services).
7. Transfer of securities of Russian and/or foreign issuers involving the transfer of ownership, arising from trades between a resident and a non-resident (clauses 4.1. and/or 15.1 of NSD Fees for Depository Services), provided that the following conditions are met:
- transfer of securities of Russian and/or foreign issuers arising from trades authorised by the Government Commission.
- 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), (including for type "C" securities account transactions), subject to the approval of the Government Commission authorisation and the following wording in the "Additional Information" field in the instruction "Transfer based on the authorisation of the Government Commission dated (date)".
and/or
- securities are transferred within one securities account at the direction of the client (Transaction Code 20) with the following wording specified in the "Additional Information" field in the instruction: "Transfer based on the authorisation of the Government Commission dated (date)".
8. Transfer of securities of foreign issuers, the settlement procedure for which is governed by the laws of the Russian Federation, including regulations of the Bank of Russia and resolutions of the Board of Directors of the Bank of Russia, official explanations of the Bank of Russia (clause 15.1 of NSD Fees for Depository Services) under trades in such securities between a CFC, a Friendly Non-Resident, on the one hand, and a Non-Friendly Non-Resident, on the other hand.
Transfers are made 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), (including for type "C" securities account transactions), provided that the following wording is specified in the Additional Information field of the instruction: "Transfer of international securities with settlement under Russian law"
These marketing periods shall apply provided that the transactions conducted under this notice comply with the requirements of the legislation of the Russian Federation, regulations of the Bank of Russia and the Board of Directors of the Bank of Russia, and official explanations of the Bank of Russia.
If you have any enquiries regarding this notice, please contact your account managers at NSD by phone on +7 495 956-27-90, +7 495 956-27-91.