In 2005, NSD opened a foreign nominee securities account with Central Securities Depository JSC, Republic of Kazakhstan (KACD). KACD keeps records of government, municipal, and corporate securities and, as authorized depository, provides services with respect to securities issued by the Ministry of Finance and the 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.
Currently, NSD provides services with respect to zero-coupon government bonds of the Republic of Kazakhstan. Requests for services with respect to fixed or floating-rate government bonds, shares, or corporate bonds of Kazakhstani issuers are considered on a case-by-case basis.
Kazakhstani securities may be held at NSD in owner securities accounts, trustee securities accounts, nominee securities accounts, or foreign nominee securities accounts.
The following transactions are available for Kazakhstani securities: securities transfers (both within a single securities account and between different securities accounts), and acceptance of securities for and/or withdrawal of securities from safekeeping and/or recordkeeping, subject to any restrictions set out in the securities account agreement. Transactions are available either on the FOP or DVP basis.
NSD supports settlements in the following currencies:
DVP – 12:00 SD
FOP – 14:30 SD
Moscow time. SD means Settlement Date. A Settlement Date must be either the then current or a future date, as KACD rejects instructions with a past Settlement Date. For DVP/FOP settlements, the mandatory fields in an instruction are transaction amount, transaction currency, and price per security.
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.
The laws do not provide for an issuer's obligation to ensure the conduct of CAs through registrars or securities depositories.
There is no 'cascade' scheme in place to enable the exercise of rights attached to securities.
- NSD only notifies of a CA upon receipt of information regarding the CA from KACD.
- Income payment
Income payable on securities is paid by Kazakhstani issuers directly to securities holders' bank accounts the details of which were provided at the time of disclosure of information on securities holders.
The amount of income or redemption proceeds in Kazakhstani tenge (KZT) is not converted into RUB or any other foreign currency.
Where cash funds required to pay income on securities are credited to NSD's account, NSD makes payments to its clients (securities holders) only if the information received from KACD is sufficient for unconditional and unambiguous determination of the applicable payment method.
- Lists of securities holders
Clients and NSD may exchange electronic documents relating to foreign currency transactions subject to foreign exchange controls ("Foreign Exchange Control Documents") via NSD's Electronic Data Interchange (EDI) System.
List of Foreign Exchange Control Documents to Be Submitted by Russian Resident Clients (Other Than Credit Institutions) to Enable NSD to Perform Its Foreign Exchange Control Duties in the Course of Securities Settlements
EDI Participants interchange Foreign Exchange Control Documents via the NSD EDI System in accordance with NSD's Electronic Data Interchange Rules. To interchange Foreign Exchange Control Documents, the NSD EDI System’s Local Interface (LUCH software) is used.
Electronic data interchange implies transmission (receipt) of transit untyped electronic documents using the 'open envelope' schema in accordance with the NSD EDI System’s Local Interface User Manual (for LUCH software).
For the purposes of interchanging transit documents, it is required to use the JPG format and to indicate, as the recipient, NSD's identifier: NDC000DDR000.
For FOP transactions:
- Open an owner securities account, trustee securities account, nominee securities account, or foreign nominee securities account with NSD.
- Have the bank account details registered for income receipt purposes, by giving an Instruction for Registration of Bank Account Details (Form AF005) to NSD, accompanied by a Notice of Bank Account Details (Form GF088) (transaction code – 07, code of the purpose of bank account details – 06).
For DVP transactions:
- Open an owner securities account, trustee securities account, nominee securities account, or foreign nominee securities account with NSD
- Open a bank account
- Sign a Bank Account Registration Application
- Have the bank account details registered, by giving an Instruction for Registration of Bank Account Details (Form AF005) to NSD, accompanied by a Notice of Bank Account Details (Form GF088) (transaction code – 07, code of the purpose of bank account details – 10).
For DVP transactions, it is not required to open any special sub-accounts in an owner securities account, trustee securities account, or nominee securities account. Securities may be transferred to/from any sub-accounts of such securities accounts held with NSD, unless this is inconsistent with the operating rules applicable to sub-accounts of a particular type.
The description of how to work via a securities account/sub-account operator is available on NSD's web site, in the User Guidelines "Working via an Account Operator".