An important change introduced with the new operating rules is that the procedure of enforced sale will be applied to all shares, even if they are registered with the pledge account. According to the new operating rules, in the event of an enforced sale of shares registered with the pledge account, the CSD will make payments based on the enforced sale of these shares to the account of the member who initiated the enforced sale procedure, at the request of the pledgee.
Another option in the case of an enforced sale of shares registered with the pledge account, and to which the pledgee did not initiate the enforced sale procedure, will be for the CSD to make the payment based on the enforced sale of those (pledged) shares to the account of the member who is safekeeping the pledger’s securities account.
Impact on investors: In case of a squeeze out event, an investor’s shares that have been pledged cannot be excluded. These changes are effective immediately.