EN
In accordance with the Resolution, the following procedure and deadlines for automatic conversion are established:
If the depositary program has been terminated, Russian issuers, starting from June 9, 2025, and until June 17, 2025, shall send a notification regarding the need to perform automatic conversion to the depository where the depositary program accounts are opened. If the depositary program is active as of the current date, such notification must be sent within 5 business days from the day following the termination date of the depositary program.
The depository where the depositary program accounts are opened shall, no later than the day of receipt of the automatic conversion notification, block shares on the depositary program accounts and, no later than 2 business days, send a request to the central depository for compiling a list of depositories carrying out accounting of rights to the foreign issuer's securities, specifying the date as of which the list must be compiled (hereinafter - Record Date). Such date is determined as the fourth business day from the date of sending the said request. The request must be sent as a Non-typed document with code NDC000ORK000, subject – request regarding DR, ISIN code and issuer name, attention to the Corporate Actions Department for International Securities.
NSD, on the day of receipt of the request to compile the list, shall publish information about the Record Date on the website in the "Client Notifications" section and, no later than 2 business days, shall send a request to depositories for collecting information to compile the list in the form of message CA311 - Corporate Actions OTHR.
A first-tier depository shall, based on the received request from NSD to compile the list, provide information in response in accordance with paragraph 2.6 of the Resolution in the form of Universal Instruction CA333 (operation code – 68/CAIR0). The instruction should include only depositary receipts that are accounted for in foreign depositories.
NSD shall provide the list containing the received information to the depository where the depositary program accounts are opened, no later than 4 business days from the Record Date.
In the instruction in form MF035 for transferring shares from a type "C" account opened for the depository where the depositary program accounts are opened, to the nominal holder account of the central depository in accordance with p.2.9 of the Resolution, it is recommended to use operation code TR39 – "OTHER" and additionally specify "p. 2.9 of the Resolution of the Board of Directors of the Bank of Russia dated 06.06.2025".
No later than 3 business days from the date of receipt of the list, the depository where the depositary program accounts are opened shall send instructions in form MF010 to NSD for debiting DR shares from DR sections and crediting them to the nominal holder accounts specified in the list. Shares will be credited to section 88 for the accounts specified in the list. Reason: "List containing information on NSD deposit accounts for crediting shares converted from DR to deposit accounts of NSD depositors".
A first-tier depository shall, no later than the business day on which it received the shares of the Russian issuer, send a Non-typed document with code NDC000ORK000 notifying of the crediting of securities of a foreign issuer to a nominal holder account of limited designation, specifying the information listed in the fourth paragraph of sub-paragraph 2.12 of the Resolution.
NSD shall, no later than three business days from the day of receiving notifications stipulated in the third and fourth paragraphs of sub-paragraph 2.12 of the Resolution, forward the received notifications to the depository where the depositary program accounts are opened.
The National Settlement Depository has carried out the automatic conversion of 37 issuances of depositary receipts into ordinary and preferred shares.
To conduct transactions with the received shares on the Moscow Exchange, it is necessary to ensure that the securities are on the trading section at NSD. Alternatively, investors must submit an instruction to their depository to transfer the securities. Depositories, in turn, must ensure the transfer of securities to their direct trading accounts at NSD.
Per the Bank of Russia's directive, restrictions apply to the sale of shares received upon redemption of depositary receipts for account holders and trustees (no more than 0.2-5% per day). Restrictions do not apply to shares credited to residents' accounts, provided the client was a holder of depositary receipts until March 1, 2022, inclusive.