Amended KDD Rules

UniCredit Bank Slovenija d.d.
Summary: 
The Slovenian CSD, KDD, amended its rules related to T2S CA details implementation.
Thu, 12/05/2016

The amendments to KDD rules were published in the official gazette on 29th April 2016 and will be valid from 14th May 2016.  The main changes are related to the implementation of CA standards following the migration to T2S:

  • Corporate actions (CA) are actions by member-issuer of dematerialized securities, executed through KDD – CSD or of which a member-issuer is obliged to notify the CSD.
  • A member-issuer is obliged to immediately notify KDD on the following CAs:
  1. CAs that involve a change or no change to the number of securities on the securities accounts at the CSD.
  2. The convocation of a general meeting of shareholders, extending the agenda of the meeting, resolutions adopted in the GM.
  3. Distributions to holders of securities.
  • Important days are more clearly defined:
  1. Record Date (RD): Day according to which persons involved in a particular CA are determined. Holdings as of RD are determined based on the holdings of the closure of KDD information system (CRVP).
  2. Last trading day: RD - 2
  3. Ex-date: RD-1
  4. Pay date (PD): RD+1
  5. Market deadline (MD): PD-1 (The last day to communicate the choice in a particular CA is one working day before the publication date of the outcome and the PD)
  6. Start of election period: MD – 10 (The first day to communicate the choice in a particular CA is 10 working days before the last day to communicate the  choice)
  7. Guaranteed participation date: MD – 3
  • When the transfer of securities against payment or against receipt of other securities is done in the process of a takeover bid, such a transfer is considered to be a corporate action, which is carried out through KDD.
  • According to the Takeover Act, in a cash bid, the KDD shall notify the acquirer of the amount that must be deposited prior to the publication of the takeover bid.

The legal basis for the amendments to KDD rules related to corporate actions processes are found in the amended Book Entry Securities Act effective as of 23 October 2015.

The amended rules are published on the KDD’s web page in the Slovenian: http://www.kdd.si/pravila_in_tarifa/pravila

 

Impact on investors:  Compliance and harmonisation of the Slovenian securities market with EU regulations on corporate actions and international CA standards due to T2S implementation.