New rules

Thu, 01/10/2015

Investors in Bulgaria can now benefit from more detailed market claims and buyer protection regulations. By Borislav Hitov, Head of GSS Bulgaria                   

The Bulgarian Central Depository AD (CDAD)’s rules were amended in September. Here are the most important changes:

  • In case of delayed settlement, CDAD will inform the respective CDAD members for market claims and buyer protection situations.
  • Market claims proceeds will be automatically transferred to buyers unless the respective CDAD members have (i) indicated in their settlement instructions the non-implementation of market claim procedure or (ii) bilaterally cancelled the market claim procedure.
  • In case of pending voluntary corporate actions, the CDAD member on the buy side will be able to instruct the CDAD member on the sell side and the latter will be obliged to subsequently forward the instruction to the issuer or the CDAD member managing the respective voluntary corporate action, as applicable.