MOSCOW - The National Depository Center (NDC), Russia’s only settlement depository servicing the full range of Russian securities, announced today that a meeting of the Board of Directors, held 18 July, approved a list of candidates for the new Board of Directors to be voted on at the forthcoming general meeting of NDC members. It also approved a proposed enlargement of NDC’s Audit Commission. The Board approved a plan of actions aimed at improvement of the company’s corporate governance system. The Board considered an update on progress NDC’s reorganization from not-for-profit partnership into a joint stock company and a report on NDC’s valuation.
The Board approved new tariffs for NDC services and brought the tariff for rapid settlement and ordering of securities within the framework of the Speedy Settlement System project with ING Eurasia. NDC’s fees to bond issuers are being reduced to optimize tariff policy, with ceilings set based on bond types. The Board recommended that NDC’s director make changes in the regulations governing the calculation of NDC fees for the safekeeping and servicing of securities and Unit Investment Trusts.
As a result of the changes, the nominal value of a bond should be based on market value. This should be done in order to calculate fees for the storage and registration of bonds which are paid for over time and are placed with international depositories and the central depositories of CIS countries. It has been decided that, since NDC has stopped rendering services to the trustees of the depositors’ accounts, NDC will collect payments directly from depositors in accordance with its tariffs.
NDC’s Board also:
· considered results of an operational audit held by Deloitte & Touche;
· considered the report of the Deputy Director – Controller and assigned NDC’s Director to take necessary measures for the fulfillment of recommendations contained in the report;
· recommended to the general meeting of NDC members that fees be paid in accordance with NDC’s Regulations on Fees and Remuneration for Members of the Board of Directors and Members of Audit Commission;
· reviewed progress in expanding the NDC client base by bring in new issuers;
· approved proposed changes in NDC’s budget for 2007 and recommended that NDC’s general meeting approve the budget for 2007 with the suggested wording;
· approved proposed changes in the Regulations on Management of Temporarily Spare Funds and recommended that NDC general meeting approve the Regulations with the suggested wording;
· reviewed the budget for Modernization of NDC’s Technical Platform for 2007;
· considered a report on the development of electronic document circulation between NDC and registrars and recommended continued work on this issue.
About NDC:
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond market of the Bank of Russia, 95% conducted in the corporate and regional bond markets, and 90% of stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. In 2006 the value of assets in storage was RUR 3.3 billion, turnover was RUR 30.7 billion, and the total number of operations 1.9 million. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, authorized to assign the international ISIN and CFI indexes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using a direct account at Clearstream Banking S.A.
Among NDC’s founders are Bank of Russia and MICEX CJSC. Members include Bank of Russia, MICEX CJSC, OJSC Bank of Moscow, Sberbank, International Moscow Bank, JP Morgan Bank International LLC, Vneshtorgbank OJSC, Bank Rossiysky Credit OJSC, Evrofinans Mosnarbank OJSC, Rosbank, Gazprombank CJSC, ING Bank Eurasia CJSC and Deutsche Bank LLC. Recently Vneshekonombank was approved as a new member. The Partnership also has a stake in CJSC Depositary Clearing Company (36.96 %) and in CJSC Settlement Depository Company (29%).
For further information about NDC: www.ndc.ru, or NDC press service: +7 495 232 0910, .