Amended Book Entry Securities Act

The amendments to the Book Entry Securities Act were published in the Official Gazette on 3 February 2017 and are valid from 4 February 2017.  Main changes to the act are:

• Squeeze-out of the minority shareholders:

In the process of squeeze-out of the minority shareholders, the request of the main shareholder to transfer the shares of the minority shareholders is treated as matched if the two following conditions have been met :

1. Decision on the squeeze-out was entered into the court register.
2. The main shareholder paid to the CSD the cash compensation for the account of all minority shareholders.

• Multiple pledge of securities is forbidden and lien cannot be granted on securities that are already pledged.

Impact on investors:  Additional rules related to squeeze-out of minority shareholders and additional restrictions to the multiple pledge of securities.