NSD provides services with respect to all securities listed on Moscow Exchange and most securities that are most often dealt with in the OTC market.
NSD provides recordkeeping and safekeeping services for the following types of securities:
- Shares of Russian issuers;
- Bonds of Russian issuers (government, municipal, and corporate bonds), and non-Russian issuers' or international financial organizations' bonds listed in the Russian Federation;
- Units of Russian investment funds and mortgage participation certificates;
- Clearing participation certificates;
- Russian depositary receipts;
- Non-Russian securities (including stocks; units (shares) of investment funds (ETFs only); bonds and Eurobonds; and depositary receipts).
NSD provides services with respect to all securities listed on Moscow Exchange and most securities that are most often dealt with in the OTC market. The full list of securities serviced by NSD is available here.
Securities are accepted for servicing on the basis of documents submitted to NSD by the party requesting that NSD accept such securities for servicing and/or on the basis of documents available to NSD.*
* NSD may reject accepting securities for servicing without giving the reason of such rejection. For the detailed information regarding the rules in accordance with which NSD accepts securities for servicing, please refer to Section 4 of the Terms and Conditions of Depository Operations of National Settlement Depository.
The lists of documents to be submitted by an interested person for NSD to accept a particular type of securities for servicing are provided below.
Shares of Russian issuers
Documents required to identify the issue of shares, the issuer, and the registrar:
- An ISIN assignment application signed by an authorized person and bearing the corporate seal (required if the shares in question were not assigned an ISIN earlier);
- Legal Entity's Details Form (AA001) containing the issuer's details, signed by an authorized person, and bearing the corporate seal;
- A copy of the registered securities issuance resolution (if available);
- A copy of the registration authority's notification of the securities issue registration (if available);
- A copy of the registered issue prospectus (if available);
- A copy of the registered securities placement report (if available); and
- A copy of the registration authority's notification of the securities placement report registration (if available).
The documents must be submitted to NSD along with an accompanying letter that must contain a request to accept the securities issue in question for servicing and the name of the registrar maintaining the shareholder register. The letter prepared in any form must be signed by an authorized person and bear the company's corporate seal.
Please note that if not all of the documents are submitted, it may take a longer time to accept the shares for servicing. NSD reserves the right to request any missing documents.
NSD will not accept for servicing any securities issued by issuers who maintain shareholder registers themselves.
Bonds of Russian issuers, and non-Russian issuers' or international financial organizations' bonds listed in the Russian Federation
The rules of interaction between NSD and issuers, as well as the documents governing interaction between NSD and issuers in the course of a primary offering of bonds either through a trading system, or outside a trading system, as well as in the course of accepting such bonds for servicing, can be found here.
Units of Russian investment funds / Mortgage participation certificates
Documents required to identify the asset management company / mortgage pool manager:
- Legal Entity's Details Form (AA001) containing the asset management company's / mortgage pool manager's details, signed by an authorized person, and bearing the seal of the asset management company / mortgage pool manager;
- A copy of a professional securities market participant's licence to manage investment funds, unit investment trusts (UIT), and private pension funds, certified by the asset management company / mortgage pool manager.
Documents required to identify the UIT / mortgage participation certificates:
- A copy of the registered UIT Management Rules / Mortgage Pool Management Rules, certified by the asset management company / mortgage pool manager; and
- A copy of any registered amendments to the UIT Management Rules / Mortgage Pool Management Rules, certified by the asset management company / mortgage pool manager.
The documents must be submitted to NSD along with an accompanying letter that must contain a request to accept the UIT's investment units / mortgage participation certificates in question for servicing and the name of the registrar maintaining the register of investment unit / mortgage participation certificate holders. The letter prepared in any form must be signed by an authorized person and bear the company's corporate seal.
NSD reserves the right to request any further documents.
To enable NSD to accept non-Russian securities for servicing, a client who is willing to transfer the securities to a securities account held with NSD must send to NSD a free-form request by e-mail to . The request must state the securities ISINs and the expected transfer date and be accompanied by a scanned copy of the issue-related documents (if available).
Please note that if not all of the documents are submitted, it may take a longer time to accept the securities for servicing. NSD reserves the right to request any missing documents.
For non-Russian securities to be accepted by NSD for servicing, the following conditions must be met:
- The financial instruments in question must satisfy the criteria set out in the Directive of the Central Bank of the Russian Federation No. 4561-U dated 3 October 2017 "On the Procedure for Qualification of Foreign Financial Instruments as Securities" made available on the Bank of Russia's official web site on 10 April 2018.
- The financial instruments must be accepted for servicing by a foreign depository with which NSD holds a correspondent account.
- The financial instruments must not be defaulted.
NSD will not accept for servicing any debt instruments for which the issue-related documents provide for the accrual of financial instruments that do not satisfy the criteria set out in the Directive of the Central Bank of the Russian Federation No. 4561-U dated 3 October 2017 "On the Procedure for Qualification of Foreign Financial Instruments as Securities".
Please note that NSD retains the right not to accept securities for servicing where there is insufficient information available concerning the issue and the issuer, or the securities are to be redeemed within the period of less than 60 calendar days following the date of the request, or there is a potential risk that NSD would fail to perform its obligations to clients, foreign depositories, or regulatory authorities either of Russia or of the jurisdiction in which the issuer is domiciled.
Where a foreign financial instrument does not have an ISIN and/or CFI code, NSD is able to assist in allocating such codes. For more details, please refer to the section entitled "Services" at www.isin.ru.
The specific terms and conditions of transactions in non-Russian securities issued by CIS issuers are available here; and the specific terms and conditions of transactions in non-Russian securities serviced by ICSDs are available here.
The time limits for NSD to accept securities for servicing depend on the quantity of securities and may be one day or more, subject to the availability of all necessary information on the issuer and the issue. The time limits can be exceeded due to any reason beyond NSD's control.
NSD does not charge any fee for securities acceptance for servicing.
Securities acceptance for servicing may be initiated by the securities depository, a securities depository's client, the securities issuer, the register keeper, an asset management company, a securities market operator, a stock exchange, or a clearing house.
For Russian securities, trading can only be started after opening an account in the register. For non-Russian securities, trading can be started on the date when the securities are accepted for servicing, in accordance with the time schedules applicable to the execution of instructions in foreign securities depositories.
Information on securities acceptance for servicing by NSD is disclosed here. Information is also disclosed in DISC NSD and here.
- Rights to fractional shares held in securities accounts are recorded by NSD without rounding, as a common fraction, in accordance with clause 2.9 of the Guidelines on the Procedure for Interaction between the Depository and Clients in the Course of Performance under the Terms and Conditions of Depository Operations of National Settlement Depository.
- The depository code assigned by NSD to fractional shares differs from the depository code assigned to the whole shares of the same issue. The last two characters in the depository code of fractional shares are put after "/" (e.g., TECS/DR).
- In the details form for fractional shares, as made available on NSD's web site and in DISC NSD, in the data field "Numerator of fraction", the numerator of the fraction of the total number of shares issued by the issuer under the issuer's Articles of Association is indicated (if such information is available).
- In a securities balance statement issued to a client, information on a share issue with fractional shares is shown in the form of common fractions, in two lines: the first line shows the number of whole shares, while the second line shows the fractional shares. In the line showing the fractional shares, in the data field 'Security's short name', the security's short name is followed by 1/X, where X is the denominator of the fraction representing the fractional shares; and in the data field 'Balance of securities', the number of fractional shares held in the particular securities sub-account of the client is indicated.
|Securities sub-account||Security code||Security's short name||State registration number/Identification number||Balance of securities|
|00000000000000000 Principal sub-account||TECS/04||Inter RAO, PJSC os04||1-04-33498-Е||2,000|
|TECS/DR||Inter RAO, PJSC os04 1/100||1-04-33498-Е||3|
Accordingly, the Principal sub-account holds the following number of shares of Inter RAO, PJSC with state registration number 1-04-33498-Е: 2,000 whole shares and 3/100 fractional shares.