On 1 July, provisions of Federal Law № 210-FZ “On Amending Certain Enactments of the Russian Federation and Termination of Certain Provisions of Enactments of the Russian Federation” amending the Federal Laws “On Joint Stock Companies” and “On Capital Markets” went into effect.
Key provisions of the corporate actions reform stipulate the following crucial changes associated with corporate actions conducted by Russian issuers:
• NSD’s status as an official corporate information source;
• A different approach to drawing up the list of security holders;
• A new procedure for exercising security holders’ rights during the course of corporate actions in a centralized manner through the safekeeping system; and
• New methods of participating in general meetings of security holders, such as e-proxy voting through a securities depository, or e-voting via the web.
The corporate actions reform addresses strategic issues for Russia's economic development, including:
• Improving the investment climate in Russia;
• Protecting investors’ rights and legal interests;
• Increasing the level of shareholders’ involvement in corporate governance;
• Upgrading corporate governance quality;
• Raising the attractiveness of Russian assets for investment; and
• Expanding Russian companies’ opportunities to raise capital.
As an active participant in the reform, NSD looks to ensure that it will be as painless as possible for securities market participants. For updated information on reform progress and all changes, please visit the dedicated web portal corpactions.ru/en. The full text of the new law is available on the Official Legal Information Portal (in Russian).
Corporate Actions Center
The new law stipulates the status of NSD as a Corporate Actions Center.
The formation of the Corporate Actions Center ensures rights and legal interests in the most reliable, safe, and accessible way, irrespective of location.
The Corporate Actions Center allows clients to, inter alia:
• Switch to electronic data interchange, without using hard copy documents;
• Use reliable financial market infrastructure to process corporate actions;
• Implement unified modern information interchange standards related to corporate actions.
NSDirect, the WEB Office, is the Corporate Actions Center’s technological platform providing market participants with an opportunity to form and send electronic documents when processing corporate actions. NSDirect has an intuitive interface and allows data to be exchanged in real time via an Internet browser. NSDirect’s safety is guaranteed by the newest cryptographic and data encryption facilities.
Corporate Information Center (CIC)
The new law stipulates NSD’s status as the single source of verified information on corporate actions. This information will take priority over any other data. This will solve the problem of corporate actions data multiplicity and inconsistency, and reduce securities market participants’ labor costs and expenses to monitor and check information received from several sources.
Nsddata.ru, a web resource, will be a technical platform and a single point of access to the CIC’s information products.