NDC Holds General Meeting of Shareholders

13 December 2006
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MOSCOW - The National Depository Center (NDC), Russia’s only settlement depository servicing the full range of Russian securities, held a general meeting of shareholders on 12 Dec. The meeting’s agenda included issues related to NDC's financial results, the budget for 2007, a report on modernization of NDC's technological platform, electronic documents circulation between NDC and registrars, membership in relevant business associations and other matters. After reviewing NDC's expected financial results for 2006, the shareholders approved NDC's budget for 2007, an estimate of income and expenditures for 2007, and a budget of capital expenditures and investments for 2007.

Nikolai Egorov, Director, NDC, told a media briefing, "The macroeconomic situation on the Russian stock market for the first nine months of 2006 was favourable for NDC's business. NDC's real business performance corresponded or even exceeded the forecasts used for the preparation of NDC's budget for 2006. The fact that income exceeded planned figures can be explained by balanced tariff policy, high levels of servicing and the favourable situation in the stock market." Mr. Egorov also discussed new services which are being developed currently. "The switch to a new technological platform will allow us to offer the newest and value-added services to clients, and the level of such services should correspond with those offered by the leading international depositories. In particular, according to the timetable of the switch to the new platform, NDC will start providing its clients with direct Internet access to their accounts and operations from 15 Dec. We are also working jointly with a major European clearing bank on another important issue – delivery against payment in foreign currency, and are also paying special attention to acceleration of settlement between depositors."

Konstantin Korischenko, Chairman of the Board, NDC, spoke of plans related to the formation of a central depository on the basis of NDC: "A future central depository should be founded on the basis of structural interaction with all self-regulated organizations uniting not only the infrastuctural community but also market players. Based on this, the general meeting decided to join the National Stock Association (NFA) and National Association of Stock Market Participants (NAUFOR) on grounds of successful long term cooperation with these organizations. The tasks which are being accomplished by NDC in cooperation with NFA and NAUFOR are aimed at further development of Russia's stock market," he said. Among the positive examples of NDC's cooperation with these associations he cited were discussion and preparation of amendments to the legislation related to the formation of the central depository, taxation of REPO deals, Russian depository receipts, and improvement in IPO procedures.

NDC's income structure for 2003-2006 follows a trend towards income diversification. In particular, there is a decrease in income from securities on deposit (from 72% in 2003 to 64% for the first nine months of 2006) and a rise in income from operations (from 13% in 2003 to 17% for the first nine months of 2006). Moreover it was pointed out that income from shares on deposit rose from 21.1% in 2005 to 29.4% for the first nine months of 2006. This indicator is close to the 2003 level (31%), when the process of phased tariff reductions had not yet begun. The value of shares on deposit is more than the planned value by 101% because of increased flows of shares to NDC. This is attributable to rising liquidity within the MICEX Group, the improved quality of servicing by NDC and decreased costs of custodial services.

The general shareholders meeting considered reports on electronic document circulation between NDC and registrars, and a report on modernization of NDC's technological platform. The meeting voted to nominate Nikolai Egorov, NDC's Director, and Eddie Astanin, Deputy Director, as candidates for the Board of Directors of RDK, an NDC subsidiary.

About NDC

Not-for-Profit Partnership “The National Depository Center” (NDC)  is a settlement depository of MICEX Group, and is Russia’s largest settlement and safekeeping provider in terms of assets held and the only national securities settlement system handling the full range of Russian issue-grade securities. NDC is an authorized depository for most issues of state, corporate, municipal and sub-federal bonds. It services 100% of deals conducted in the state bonds market and, during the most recent three months, more than 95% of turnover in corporate shares and bonds, and sub-federal and municipal bonds.

Among NDC’s founders are Bank of Russia and MICEX CJSC. The members of Non-Commercial Partnership National Depository Center include Bank of Russia, MICEX CJSC, 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.


You can receive the additional information in Press-service NDC by phone (495) 232-09-10 or e-mail: .

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