On 7 July 2016, National Settlement Depository (NSD), Russia’s central securities depository, held a webinar “Corporate Actions Reform. PRIO” for its clients. The depository’s representatives – Sergey Kuzmin, Head of Product Development and Support, and Galina Pavlova, Analyst of the Corporate Actions Center Development Unit, – outlined the process of exercising the preemptive right to acquire shares from 1 July 2016, demonstrated how NSDirect, the new Web Office, worked when processing this corporate action, and answered the webinar participants’ questions.
NSDirect is a part of the depository’s electronic document interchange system. It provides market participants with an opportunity to interact electronically during the corporate actions process by using its interface for data entry via NSD’s special browser. NSDirect has an intuitive interface and allows data to be exchanged in real time via an Internet browser. NSDirect’s safety is guaranteed by the newest cryptographic and data encryption facilities.
On 1 July 2016, legal framework for the corporate actions reform went into effect. In particular, a new procedure for exercising security holders’ rights during the course of corporate actions was introduced. Now, they are exercised in a centralized manner through the safekeeping system’s institutions. For updated information on the reform, please visit the dedicated web portal www.corpactions.ru/en.