The NSD presented first results of the Corporate Action reform in Russia. By Ksenia Liskina, Relationship Manager, GSS Russia.
Significant improvements in Russian Corporate Actions practices are designed to bring Russia’s financial market infrastructure closer to the best international standards. The National Settlement Depository (NSD), which became the official corporate action centre in Russia, has processed its first corporate actions in accordance with recent legislative amendments which had become effective as of July.
The new process of corporate actions processing envisages a standardised document interchange, usage of e-technology, simplification of disclosure and documentation requirements for participation in corporate actions.
Since the legislation has changed, 10 shareholder and 5 bondholder meetings were held. All Corporate Actions were processed in an electronic format with ISO 20022 international standards gradually becoming the basic CSD and market practice.
The new legal framework for corporate actions processing has standardised and simplified corporate actions execution and made it more convenient and efficient for investors to participate. Due to the Corporate Actions reform, risks related to the processing of paper based documents are expected to be gradually eliminated and the gaps existing in the process so far can mainly be attributed to the transition period required by the issuers and registrars to adapt to the new market requirements.