O/Ref. No. НРД-И-2024-19657 as of 27 December 2024
Attn.: NSD clients
Pursuant to the decision of NSD's Executive Board dated 26 December 2024, NSD announces the extension of the marketing periods (i.e. that no service fees will be charged) for the following services from 1 January 2025 to 30 June 2025:
- Participation of a person exercising rights on securities in corporate actions, in accordance with clauses 5.2-5.5 of the NSD Fees for Depository Services, provided that the following conditions are simultaneously met:
- Trades in securities are executed 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;
- Trades in securities have been authorised by the Government Commission for Supervision of Foreign Investments in the Russian Federation issued for the purpose of implementing additional temporary measures of economic nature to ensure the financial stability of the Russian Federation and other authorisations provided for by certain decrees of the President of the Russian Federation (the "authorisation of the Government Commission"), and/or have been authorised on the basis of a dedicated decision of the President of the Russian Federation issued in accordance with the decrees of the President of the Russian Federation (the "dedicated decision of the President of the Russian Federation");
- The client provides NSD, at the latest on the last business day of the reporting month, with a list of the corporate action instructions ("CA") that fall within the marketing period, including the following information:
- The number and date of the CA instruction,
- CA Reference,
- Date of the authorisation of the Government Commission and/or the date of the dedicated decision of the President of the Russian Federation
- 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 securities 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.
- 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 simultaneously met:
- 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);
- 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, with the Additional Information field of the instruction containing the following: "Transfer from an account opened with an international securities depository without a change of ownership of the securities".
- Transactions in which a foreign nominee client submits to NSD an instruction in the client's securities account with NSD to debit securities of Russian issuers from such account for credit to any securities account where "Transfer from an account opened with the international securities depository without a change of ownership of the securities" must be 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 where "Transfer from a foreign holder account to a securities account with another Russian securities depository without changing the ownership" must be indicated in the Additional Information field of the instruction.
- 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)
- 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).
- 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). - 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:
- This is a transfer of securities of Russian and (or) foreign issuers as a result of trades authorised by the Government Commission in order to implement additional temporary measures of an economic nature to ensure the financial stability of the Russian Federation and other permissions provided for by separate Decrees of the President of the Russian Federation, and (or) on the basis of a dedicated decision of the President of the Russian Federation.
- This is a transfer of securities without cash settlement (Transaction Code 16 and 16/1) based on 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 authorisation of the Government Commission and the following mandatory wording in the Additional Information field of each instruction: "Transfer based on the authorisation of the Government Commission dated (date)" and "Transfer based on the decision of the President of the Russian Federation dated (date)". Such a comment means an assurance by the client that it has the authorisation of the Government Commission* and/or a dedicated decision of the President of the Russian Federation to carry out trades in these securities.
and/or - Securities are transferred within one securities account on the client's instruction (Transaction Code 20) and the following wording must be included in the 'Additional information' field of the instruction: "Transfer based on the authorisation of the Government Commission dated (date)" and "Transfer based on the of the President of the Russian Federation dated (date)". Such a comment means an assurance by the client that it has the authorisation of the Government Commission and/or a dedicated decision of the President of the Russian Federation to carry out trades in these securities.
- 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.
- This is a transfer of securities without cash settlement (Transaction Code 16 and 16/1) based on 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 authorisation of the Government Commission and the following mandatory wording in the Additional Information field of each instruction: "Transfer of international securities with settlement under Russian law"
These marketing periods shall apply provided that the transactions 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 NSD account managers by phone at +7 495 956-27-90, +7 495 956-27-91.