NSD notifies its clients (securities holders) of corporate actions through various communication channels, using the ISO 20022 and ISO 15022 standards. The technology used by NSD is based on the international standards and best global practices and allows NSD's clients to receive full information on corporate actions and benefit from using structured messages.

Types of securities for which notifications are given:

  • Shares of Russian issuers;
  • Shares of foreign issuers;
  • Bonds of Russian issuers;
  • Bonds of foreign issuers;
  • Russian and foreign UIT units;
  • Depositary receipts; and
  • Mortgage Participation Certificates.

NSD uses various schemes and message types when disseminates information about corporate actions according to different criteria:

  1. Type of security
  2. Type of corporate action (ISO code)

Corporate action event indicators and their description are published by NSMPG according to SWIFT RUS guidelines. The full list of corporate action types in international practice can be found at the SMPG website or in Global Grid document.

For the rules of notification and specifics for certain groups of corporate actions, please see the presentation "Corporate Actions Notification".

Advantages
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  • NSD provides structured and formatted information about corporate actions to its clients;
  • HTML format remains in use that is convenient for visual use and manual processing;
  • New XML format allows  straight-through processing of information about corporate actions;
  • Compliance with international standards contributes to the expansion of the investors base and service providers;
  • Notifications are sent for the client’s portfolio and in accordance with the established schedule for the upcoming corporate actions;
  • Every two hours, NSD monitors changes in securities balances, following which the client is sent information about the corporate action for the new securities in his portfolio.
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Corporate action types involving Russian securities for which notifications are given
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CA Type CA Name
BIDS Repurchase Offer / Issuer Bid / Reverse Rights
BMET Bond Holder Meeting
BONU Bonus Issue / Capitalisation Issue
BPUT Put Redemption
CAPG Capital Gains Distribution (UIT units/MPCs)
CHAN Change
CONV Conversion
DECR Decrease in Value
DSCL Disclosure
DVCA Cash Dividend
DVSE Stock Dividend
EXOF Exchange
INCR Increase in Value
INTR Interest Payment
LIQU Liquidation Dividend/Liquidation Payment
MCAL Advanced Repayment
MEET Annual General Meeting
MRGR Merger
OMET Ordinary General Meeting
OTHR Other event
PARI Pari-passu
PRED Partial Redemption Without Reduction of Nominal
PRIO Priority Issue
REDM Principal repayment / Preferred shares redemption / Redemption of an entire unit investment fund/MPCs
SOFF Spin-off
SPLF Stock Split / Change in Nominal Value / Subdivision
SPLR Reverse Stock Split / Change in nominal value
TEND Tender / Acquisition / Takeover / Purchase Offer / Buyback
XMET Extraordinary or Special General Meeting
WRTH Worthless
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Corporate action types involving foreign securities for which notifications are given
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CA Type CA Name
BIDS Repurchase Offer / Issuer Bid / Reverse Rights
BMET Bond Holder Meeting
BONU Bonus Issue / Capitalisation Issue
BPUT Put Redemption
BRUP Bankruptcy
CAPD Capital Distribution
CAPG Capital Gains Distribution (UIT units/MPCs)
CAPI Capitalisation
CERT Non-US TEFRA D Certification
CHAN Change
CLSA Class Action
CMET Court meeting
CONS  Consent
CONV Conversion
DECR Decrease in Value
DETI Detachment
DFLT  Bond Default
DLST Trading Status: Delisted
DRCA Cash Distribution from Non-Eligible Securities Sales
DRIP Dividend Reinvestment
DSCL Disclosure
DTCH Dutch Auction
DVCA Cash Dividend
DVOP Dividend Option
DVSE Stock Dividend
EXOF Exchange
EXRI Call on Intermediate Securities
EXTM Maturity Extension
EXWA Warrant Exercise
INCR Increase in Value
INFO Information
INTR Interest Payment
LIQU Liquidation Dividend/Liquidation Payment
MCAL Full Call / Early Redemption
MEET Annual General Meeting
MRGR Merger
NOOF Non-Official Offer
ODLT Odd Lot Sale/Purchase
OMET Ordinary General Meeting
OTHR Other event
PARI Pari-passu
PCAL Partial Redemption With Reduction of Nominal Value
PINK Pay In Kind
PRED Partial Redemption Without Reduction of Nominal
PRIO Priority Issue
REDM Final Maturity
RHDI Rights Distribution
SHPR Shares Premium Dividend
SOFF Spin-off
SPLF Stock Split / Change in Nominal Value / Subdivision
SPLR Reverse Stock Split / Change in nominal value
TEND Tender / Acquisition / Takeover / Purchase Offer / Buyback
TREC Tax Reclaim
WRTH Worthless
WTRC Withholding Tax Relief Certification
XMET Extraordinary or Special General Meeting
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Message types used
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ISO20022 ISO15022 HTML
  • MeetingNotification (CA012)
  • MeetingNotification (CA013)
  • MeetingNotification (CA014)
  • CorporateActionCancellationAdvice (CA391)
  • CorporateActionNotification (CA312)
  • CorporateActionNotification (CA311)
  • MeetingCancellation (CA021)
  • MeetingResultDissemination (CA082)
  • MT564 – Notification (NEWM, REPL, RMDR, WITH, CANC), Pre-advice (a preliminary notification on cash and/or securities movements for corporate actions / a notification with calculation of entitlements)
  • MT568 – Narrative
  • MT566 – Confirmation (a confirmation of cash and/or securities movements under corporate action)
  • Meeting Notification (CS012)
  • Meeting Notification (CS013)
  • Meeting Notification (CS014)
  • Meeting Result Dissemination (CS082)
  • Meeting Cancellation Advice (CS021)
  • Corporate Action Notification (CS311)
  • Corporate Action Reminder (CS312)
  • Corporate Action Cancellation Advice (CS391)
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List of all SWIFT FIN messages that can be sent by NSD to clients in connection with corporate actions involving Russian securities
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MT564 Notification MT564
Pre-advice
MT566 Confirmation (cash) MT566 Confirmation (securities) МТ568 Narrative
BIDS Repurchase Offer / Issuer Bid / Reverse Rights + + + + +
BONU Bonus Issue / Capitalisation Issue + - - + -
BPUT Put Redemption  + - + + +
CONV Conversion + - - + -
DECR Decrease in Value + - - + -
DRAW
PRED
Partial Redemption Without Reduction of Nominal + + + - -
DSCL Disclosure + -
DVCA Cash Dividend + + + - -
EXOF Exchange + - - + -
INCR Increase in Value + - - + -
INTR Interest Payment + + + - -
MCAL Advanced Repayment  + - - + -
MEET Annual General Meeting + +
MRGR Merger + - - + -
OTHR Other event + +
PARI Pari-passu + - - + -
PRIO Priority Issue + - - + +
REDM Principal repayment / Preferred shares redemption / Redemption of an entire unit investment fund/MPCs  + - - + -
SOFF Spin-off + - - + -
SPLF Stock Split / Change in Nominal Value / Subdivision + - - + -
SPLR Reverse Stock Split / Change in nominal value + - - + -
TEND Tender / Acquisition / Takeover / Purchase Offer / Buyback + + + + +
WRTH  Worthless + - - + -
XMET Extraordinary or Special General Meeting + +

MT564 Pre-advice is sent:

  • when cascade payments are made
  • after the record date

MT566 Confirmation is sent:

  • when cascade payments are made
  • after actual payment of income
  • after processing of debiting and crediting of securities

The cascade method is used for

  • Federal bonds (OFZ) income payment
  • payment of income on bonds registered after 2012
  • payment of dividend on shares
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Compliance with international standards
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MARKET STANDARDS FOR GENERAL MEETINGS, JWGGM, 2010, Standards 1.4 and 1.5.

As the central securities depository, NSD ensures that its clients (securities holders) are sent corporate action and meeting notifications, as well as materials and resolutions of general meetings, no later than one business day following the receipt of the relevant information from the issuer or a person authorized by the issuer. NSD applies the approaches described above to notification of any changes to corporate actions, meetings, and materials/resolutions of general meetings. Information is provided to clients in electronic format, using the ISO standards.

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Voluntary and mandatory corporate actions processed by NSD for its clients (securities holders) may require submission of instructions. By means of such instructions, persons exercising the rights attached to the securities may choose one of the options available for the corporate action. However, there is a deadline for submission of instructions, which is set either by the issuer or by a third party responsible for the corporate action. In addition, securities depositories along the chain also need time to process instructions of their clients, for which reason they may set shorter deadlines by which persons exercising the rights attached to the securities must give their instructions.

NSD makes it possible for its clients to receive Reminders of corporate actions for which instructions may be given. A Reminder is a shorter version of a Corporate Action Notification sent to the client three (3) business days (for Russian securities) or two (2) business days (for foreign securities) before the deadline for submission of CA Instructions. NSD uses the following three main formats to send Reminders to its clients:

  • ISO20022 (xml)
  • ISO15022 (SWIFT)
  • HTML

Similar to Notifications, Reminders are divided into two categories:

  • Meeting Reminders; and
  • Corporate Action Reminders
Report Type Instruction Type Report Name Communication Channel
CA013 67 Meeting Reminder (XML or MT 564) CA WEB-client
Web-service
SWIFT
CA312 67 Corporate Action Reminder (XML or MT 564) CA WEB-client
Web-service
SWIFT
CS013 67 Meeting Reminder (HTML) Web-service
CS312 67 Corporate Action Reminder (HTML) Web-service

Reminders (CA013, CS013) for general meetings of shareholders (MEET, XMET, OMET) holding Russian or foreign securities are sent through various channels using the ISO 20022 and ISO 15022 standards to all clients with a positive balance in their securities accounts either as at the record date or as at the messaging date. Reminders for Russian securities are sent to those clients who have failed to disclose the details of persons entitled to participate in the general meeting.

Clients may opt out from receiving CA013 type messages (either for the client's code altogether, or for a particular securities account) or CS013 type messages (for the client's code altogether) by giving an instruction to NSD for transaction with code 97. To opt out, the "don't send" option has to be ticked in the instruction for CA013 type reports (stating, if necessary, the number of the relevant securities account) and/or CS013 type reports. If there is a valid instruction for transaction with code 97 available for the report recipient, the earlier settings have to be repeated and new ones have to be added.

At the same time, the Corporate Action Reminder (CA312 and CS312) service remains optional. To sign up for the service, an instruction for a transaction with code 97 has to be given either for the client in general, or for particular accounts.

Fee

There is no separate fee for a Reminder message. However, SWIFT messages are charged in accordance with the EDI Fee Schedule.

Messaging Rules

A Reminder message (a message with qualifier RMDR) will be sent to clients as follows: a message is issued based on the corporate action details, provided that there is a deadline set for giving instructions for that corporate action. Therefore, for a Reminder to be issued, the initial Corporate Action Notification must contain the following fields:

Early Response Deadline Date/Time (EARD). The date and time set by NSD as the deadline for submission of instructions for the upcoming event, where early submission of instructions (i.e., before the deadline) may allow the securities holder to enjoy additional privileges or bonuses. The time so specified is Moscow time, unless a different time zone is specified in the initial Corporate Action Notification,

Or

Response Deadline Date/Time (RDDT). The date and time set by NSD as the deadline for submission of instructions for the upcoming event. The time so specified is Moscow time, unless a different time zone is specified in the initial Corporate Action Notification.

Reminders (RMDR) will be sent to clients one (1) (BPUT type Corporate Action) or three (3) business days (BIDS, TEND or PRIO type Corporate Action) before the RDDT or EARD date for Russian securities or two (2) business days before the RDDT or EARD date for foreign securities, as the case may be.. If the corporate action event involves two or more RDDT/EARD dates, clients will be sent two or more messages, respectively. Messages will be sent on business days. Where the next scheduled Reminder date is a non-business day, the Reminder will be sent on the immediately preceding business day.

Reminders will not contain links to any documents relating to the relevant corporate action; and, for SWIFT messages, no MT 568 message with additional information will be issued. For the documents and the full narrative regarding the corporate action, the most recent Notification (NEWM or REPL) should be consulted.

Reminders will be sent to clients with a positive balance in their securities accounts either as at the record date or as at the messaging date.

Exception

Reminders sent in connection with the disclosure of a list of holders of Russian securities (DSCL). Such Reminders will be sent either as a GS036 Form report/statement or an MT 564 (RMDR) message, provided that the client has failed to submit a list of persons exercising the rights attached to the securities for the full quantity of securities specified in the initial request. Such Reminders are issued automatically at 4.00 a.m. (Moscow time) on the deadline date for submission of information on securities owners, as well as at other times at NSD's discretion.

Advantages

A message is sent as a Reminder of the upcoming event to inform the client of the need to give an instruction for the relevant voluntary corporate action or mandatory corporate action with options.

Corporate action notifications using the ISO 20022 standard are sent to all clients of NSD via the CA Web-client and Web-service.  Corporate action notifications using the ISO 15022 standard are sent via SWIFT to those clients in whose EDI Details Form SWIFT is specified either as the primary or backup channel for communication with NSD, but with an option of a copy of reports/statements being sent via the backup channel.

Standard / File Format CA WEB-client Web-service SWIFT LUCH
ISO 20022 (xml) + +    
ISO 15022       +  
HTML   +   +

NSD allows its clients to manage the receipt of reports/statements and notifications relating to corporate actions either for the particular client, or for a particular securities account. By sending an instruction for transaction 97, clients may select either the HTML or XML format, as well as to opt-in/out for SWIFT notifications. Guidelines for managing corporate action and meeting notifications.

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