On 9 February 2006 Director of the National Depository Center Nikolai Egorov and Alexander Smolin acting General Director of the State Central securities depository of Republic Uzbekistan signed a memorandum of cooperation. The parties are guided by the necessity to develop efficient system for cross-border settlement, prospects for integration of stock markets in Russia and Republic Uzbekistan, as well as a strive to establish, develop and strengthen mutually beneficial relationship.
During the signing ceremony Nikolai Egorov noted that “Russian investors show great interest in buying securities of Uzbek issuers and as a result development of depository services and cross-border settlements becomes the barest necessity today”. The parties plan to solve the following top-priority issues:
- preparation of depository technology for listing and inclusion in quotation lists of Uzbek issuers’ securities on MICEX;
- preparation of depository technology to be able to support simultaneous IPO on MICEX and RSE “Toshkent”;
- preparation to establish correspondet relations between the Depositories;
- exploring possibilities to use depository technologies for trades on commodity exchanges;
- organization of mutual training programs and experience exchange between specialists of the Depositories;
- development of joint EDI technology based on international message standards;
- preparation of proposals on improving legislative framework.
Reference:
State Central Securities Depository of Republic Uzbekistan according to the clause 10 of the Law of Republic Uzbekistan “On depository activities on securities market” and Ministry of Republic Uzbekistan Resolution of 21 May 1999 #263 “On issues of organization and activities of a Central Securities Depository” is assigned with exclusive functions:
- safekeeping of dematerialized securities issues;
- safekeeping before redemption of bearer securities of privatized units;
- registration of government rights on bearer and registered securities;
- management of depositories’ correspondent account;
- confirmation of availability and genuineness of securities of on-exchange and OTC trading participants before trading;
- settlement of on-exchange and OTC trades;
- safekeeping of documents which verify issuance and circulation of bearer and registered securities;
- recordkeeping on the territory of Republic Uzbekistan of securities issued by foreigners and on foreign stock exchanges of securities issued by residents of Republic Uzbekistan;
- collection and systematization of information on securities movement in the system of depositories;
- provision of consultation services to public companies on corporate actions and preparation of issue documents;
- provision of services to investment funds on safekeeping, maintaining the holders register of securities, issued and owned by those funds.
Along with the above exclusive functions State Central Securities Depository does the following functions concerned with functionality of domestic stock market which include register maintenance for holders of securities, issued and owned by privatization and investment funds, provision of consultation services to public companies on corporate actions procedures and preparation of issue documents, as well as provision of services to investment funs on safekeeping, maintaining the holders register of securities, issued and owned by those funds.
Central Securities Depository clients include state represented by State Property Committee of Republic Uzbekistan, holdings, corporations, associations, UITs and other professional market participants. As of 1 January 2006 the Central securities depository maintained issues records of 2,114 public companies, 633 of which have state assets in their capital, established correspondent relations with 35 second level depositories, serviced 4 privatization investment funds and 1 investment fund.