Streamlined execution of rights

Fri, 29/04/2016

The corporate actions reform in the Russian securities market is moving ahead. By Yuliya Shibukova, Relationship Manager, GSS Russia
                                                                                    

New procedures and technologies related to rights associated with Russian securities will be coming in force as of 1 July, ensuring better protection of investor rights.

The following rights attached to Russian securities held in depositories can only be exercised via electronic interaction with depositaries:

  • pre-emptive rights to acquire securities;
  • buy-backs of securities;
  • repurchasing securities;
  • tender offers;
  • squeeze-outs.

The rights listed below can be exercised by owners of securities held in depositories either through independent interaction with an issuer or via electronic interaction with depositories:

  • adding items to the general meeting agenda;
  • nominating a joint stock company’s board of directors and other bodies or representative’s candidates of bondholders;
  • calling general meetings;
  • participating in general meetings and exercising voting rights;
  • exercising other rights related to securities.

Additionally, a power of attorney and legal documents may be required from investors for their participation in a market offer or in an exchange offer.