The General Meeting of the partners of the Not-for-Profit Partnership "The National Depository Center" (NDC) was held on December 22, 2005.
The General Meeting decided to increase NDC's capital to 50 million dollars USD by January 1, 2010, which is in line with the average amount of capital of European CSDs. By the end of 2005 NDC’s capital will reach RUB 616 million from RUB 419 million, net profit will increase to RUB 191 million from RUB 147 million.
The Partnership members approved NDC budget for 2006 and new fee schedule.
According to their decision NDC fees for safekeeping of the government, municipal and corporate bonds will be reduced by 15%.
In order to reduce market participants' costs for safekeeping and settlement of shares of Russian issuers the following is planned from the beginning of 2006:
- reduction by 20% of fees for safekeeping and settlement of shares with a possibility of further reduction during the year. This reductions will apply to all lines of the regressive fee scale except for the lowest range which concerns fees for the first RUB 100 million of assets in safekeeping;
- establishment of sub-accounts especially for safekeeping of shares that are not traded on an exchange. Safekeeping of those shares in those sub-accounts will allow to reduce time necessary for transfer of shares for exchange trading in comparison with the current procedure of transfer of shares from registrars.
In order to reduce costs for bond issuers the decision was taken to replace from January 01, 2006 fees for maintenance of bond issues with fees for NDC services for bond placements while converting issues already safekept at NDC when the issuer is reorganized.
Aiming at increasing efficiency and further democratization of Partnership management the General meeting decided to broaden the authority of NDC Board of Directors. In particular, NDC Board of Directors is delegated functions of approving the fees for NDC services, choosing an auditor, forming NDC consultation bodies. The relevant changes will be made in the Charter of NDC and the By-laws.
The partnership members have approved the functional model of NDC's new technological model developed jointly with one of the world leading consultancy firms – Accenture. The analysis of the basic NDC functional model carried out by Accenture confirmed that NDC's business model complies with the standard practice of national and international CSDs. Switch to a new technological platform will allow to be technologically prepared to provide new services as soon as regulations and market requirements change without disruption of NDC business.