Transactions at Central Securities Depository of Kazakhstan (KACD)
In 2005, NSD opened an omnibus securities account with Central Securities Depository JSC, Republic of Kazakhstan (KACD). Thanks to NSD's account with KACD, NSD' clients may use their accounts with NSD to hold Kazakh securities.
KACD keeps records of government, municipal, and corporate securities and, as authorized depository, services securities issued by the Ministry of Finance and National Bank of the Republic of Kazakhstan. KACD acts as nominee holder of financial instruments on behalf of its clients and their customers. KACD opens accounts for its clients to keep records of financial instruments held by them and to register transactions in such financial instruments. The positions of NSD's clients are recorded in NSD's account with KACD on an aggregate basis.
Kazakh securities may be held at NSD in owner securities accounts, trustee securities accounts, or omnibus securities accounts.
KACD has three main types of orders: a trade order, an order for securities transfer, and an order to accept/withdraw financial instruments for/from nominee holding by KACD. The first type always involves cash transfer, while the second and third types involve delivery on a FOP basis.
On the basis of clients' matching instructions, KACD registers OTC trades between customers of KACD's clients or between a KACD's client and a customer of KACD's another client.
A single order is needed to register transactions for acceptance/withdrawal of financial instruments for/from nominee holding by KACD, or transactions in sub-accounts in the same account (between customers of the same client of KACD, or between a KACD's client and its customer).
Income payable on securities is paid by Kazakh issuers directly to securities holders' bank accounts the details of which were provided at the time of disclosure of information on securities holders.
The tax rate for dividend income is 15%. Income is paid in the amount due, less tax withheld by the issuer. To benefit from the Double Taxation Convention between the Russian Federation and the Republic of Kazakhstan, it is required to provide a document certifying that the income beneficiary is a Russian resident.
The amount of income or redemption proceeds in Kazakhstani tenge (KZT) is not converted into RUB or any other foreign currency.
The detailed information on transactions, instruction completion guidelines, and procedure for submission and execution of instructions is available in the Manual for Kazakhstan's CSD.
Transactions at Republican Unitary Enterprise “Republican Central Securities Depository”, Republic of Belarus (RCSD)
Belarusian securities may be held at NSD in owner securities accounts only.
There are two types of transfers available at RCSD: intra-depository and inter-depository transfers. The essence of such transfers is different from how these types of transfers are interpreted under the Russian laws. The first type is a transfer from an account of NSD's client to an account of NSD's another client, while the second type is a transfer (debit/credit) from NSD's account with RCSD to an account of another depository with RCSD (or vice versa). Currently, only FOP instructions may be used to make transactions in NSD's account with RCSD.
Please note that:
- An instruction to debit securities must contain the name of the depository to whose correspondent LORO securities account/sub-account with RCSD the securities are to be transferred (the "transferee depository"), the number of the transferee depository's correspondent LORO securities account, the name of the transferee depository's client to the benefit of whom the securities are to be transferred (the "transferee"), and the number of his securities account/sub-account with the transferee depository.
- To have Belarusian securities credited to a securities account with NSD, transaction code 35 must be indicated in the instruction to accept the securities for safekeeping and/or record keeping (Form MF035), in the 'Transaction code' field.
Income on Belarusian securities is paid by issuers directly to securities holders.
Clients' bank account details intended for payment of income on Belarusian securities are registered by NSD in accordance with the applicable procedure for registration of bank account details for payment of income in a foreign currency.
Further information is available on the web site of Republican Unitary Enterprise “Republican Central Securities Depository” at www.centraldepo.by.
Transactions at Central Depository of Armenia (CDA)
NSD holds a nominee account with CDA. The nominee account is intended for holding government and corporate bonds, as well as shares of Armenian issuers. The positions of NSD's clients are recorded in NSD's account with CDA on an aggregate basis.
Armenian securities may be held at NSD in owner securities accounts, trustee securities accounts, or omnibus securities accounts.
NSD's account with CDA may be used to make OTC transactions for acceptance/withdrawal of securities for/from servicing, either on a FOP basis or DVP basis.
In accordance with the laws of the Republic of Armenia, securities listed on Armenia Securities Exchange (AMX) may not be settled in the OTC market, except for NCBO (No Change of Beneficial Ownership) transfers. This restriction does not apply to transactions in government securities of the Republic of Armenia.
The list of securities listed on AMX is available at https://amx.am/en/
The maximum time for execution of CDA's instructions is three business days.
Income on government securities of the Republic of Armenia is remitted by CDA in Armenian drams (AMD) to NSD's correspondent account with Interstate Bank; afterwards, NSD distributes such income to its clients holding the relevant securities.
Income on corporate securities is paid directly by Armenian issuers to securities holders' bank accounts the details of which were provided at the time of disclosure of information on securities holders.
Therefore, bondholders and their authorized persons (including nominee holders) who are NSD's clients must provide NSD with necessary information in a timely fashion. All financial risks resulting from failure to provide, or to provide in due time, information requested by CDA are borne directly by NSD's clients and their customers.
The amount of income or redemption proceeds in AMD is not converted into RUB or any other foreign currency.
Income is paid in the amount due, less tax withheld by the issuer.
NSD's clients may open an AMD account with NSD to receive income on Armenian securities.
For transactions in Armenian securities on a DVP basis, payments are made through CDA's trading account with the Central Bank of the Republic of Armenia.
To purchase Armenian securities on a DVP basis, with CDA acting as the place of settlement, NSD's client must remit the necessary amount in AMD to NSD's account no later than day T-1 (where T is the expected settlement date), using the following details:
- Beneficiary: NSD (SWIFT: MICURUMMXXX)
- Account No. 30109051500000000045 with Interstate Bank, Moscow (SWIFT: INEARUMMXXX, Account No. 103002700054 with the Central Bank of the Republic of Armenia)
Services provided with respect to securities of certain Armenian issuers
Please note that, if you decide to hold securities of the following Armenian issuers in securities accounts with NSD, you acknowledge and agree that the rights attached to such securities are to be exercised directly via those issuers:
- “International Energy Corporation” CJSC (ISIN: AMINPCS10ER3)
- METSAMORENERGOATOM CJSC (ISIN: AMMCMRS10ER3)
Transactions at Central Depository of the Kyrgyz Republic
NSD opened a securities account with Central Depository of the Kyrgyz Republic in 2013. Thanks to NSD's account with Kyrgyz CSD, NSD' clients may use their accounts with NSD to hold corporate bonds and shares of Kyrgyz issuers. The positions of NSD's clients are recorded in NSD's account with Kyrgyz CSD on an aggregate basis. CSD's functions for government securities are performed by the National Bank of the Kyrgyz Republic. Currently, NSD does not provide services with respect to government securities of the Kyrgyz Republic.
In accordance with the current laws of the Kyrgyz Republic, securities transactions are made in the OTC market on a FOP basis only, with No Change of Beneficial Ownership (NCBO). For a transaction to be settled, documents confirming that there will be no change of beneficial ownership of the relevant securities have to be provided to Kyrgyz CSD beforehand.
Income payable on securities by Kyrgyz issuers is paid directly to securities holders' bank accounts the details of which were provided at the time of disclosure of information on securities holders, within three business days. If so agreed with Kyrgyz CSD, income payments may be converted from Kyrgyzstani som (KGS) into USD.