NSD: Income Payment on Securities (Service Description)
Income Payment on Securities
General Information

NSD provides its depositors with services related to income payment on securities, which include:

  • compilation of a list of securities holders to receive income, redemption amounts and other payments on bonds of Russian issuers whose issuance (state registration) or assignment of identification number was carried out before 01.01.2012

  • transfer of income on securities to depositors' accounts;

  • informing depositors about upcoming income payments, redemption amounts and other payments;

  • providing depositors with additional information necessary for calculating tax amounts;

  • transfer (receipt) of income on securities or funds from securities redemption (hereinafter — payments) in a currency different from the payment currency.

Income Payment on Securities Recorded on Individual Accounts in ICSD

Actions necessary to ensure the Depositor receives income on securities in foreign currency are carried out by the Depository taking into account restrictions established in accordance with the legislation of the Russian Federation on currency regulation and currency control.

Income payments and other payments on securities in foreign currency are made to Depositors who have opened a special XE section for work in ICSD on the owner's/nominee holder's/trust manager's securities account to:

  • Special account at NSD in the currency serviced at NSD for settlements in ICSD;

  • bank account at an external bank, if a Special account was not previously registered in this currency.

To ensure receipt of income on securities in foreign currency, the Depositor must necessarily specify the Special account/accounts when submitting instruction 90/ECS to open a section or register bank details according to which funds should be transferred, by providing a depository instruction in form AF005 with an attachment of bank details notification in form GF088 in accordance with subparagraph 3.7 of the Procedure specifying:

  • Special account opened at NSD, provided that no other Special account opened at NSD by instruction 07 with purpose 06 was previously registered for the special XE section in the same currency;

  • special depository account opened at NSD, provided that no other Special account opened at NSD by instruction 07 with purpose 06 or purpose 10 was previously registered for the XE section in the same currency;

  • or a special brokerage account opened at NSD was registered by instruction 07 with purpose 10;

  • bank account at an external bank provided that no Special account was previously registered by instruction 07 with purpose 10 for the special XE section.

In the absence of instruction 07 with purpose 06 "For transfer of income and other payments on securities (permanent details)", payments are made according to bank details from registered instruction 07 with purpose 10 "For receipt/removal of securities on DVP terms" if available.

Registration of bank details by instruction 07 with purpose 07 for income payment "by cascade" on foreign securities is not allowed.

Form GF088 is provided in Appendix No. 1 to the Conditions for Carrying Out Depository Activities.

As a result of each transfer of income on securities in foreign currency, the Depositor is provided with a Notice of Payment and Transfer of Income in form GSCUR. (p.3.25.1.6 of the Procedure for Interaction between the Depository and Depositors)

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