Dear Client,
The Securities Commission of the Federation of BiH approved changes of the CSD Rulebook.
The most notable change is the definition of the process for transfer of securities for transactions executed on the OTC market. Such transactions have to be executed through a professional intermediary (brokerage house) and are based on a contract between the buyer and the seller of the securities concluded at the brokerage house. The transfer of the securities shall be done by the CSD based on an application submitted by the broker. The CSD is obliged to execute the transfer within three days from receipt of such application or can refuse its execution if the application is not completed properly and/or any supporting documentation, if applicable, is not presented.
In addition, the amendments extend the services of the CSD - it can now act as Paying Agent for issuers.
Impact on investors: FBiH now features a formalised way for the execution of OTC transfers at CSD level.
Related Newsflash: FBiH Rulebook on Securities Intermediation Services Amendments