Foreign issuers’ corporate events (income payment) Print

 

The Central Depository receives all the information on corporate actions on securities issued or placed outside of Ukraine from a foreign state depository or an international depositary institution. The Central Depository transmits information to depositary institutions, which perform the relevant securities record keeping at their accounts in the Central Depository, at the time of that information receipt.

In case a corporate event includes the provision on mandatory or optional submission of information by securities owner (for example, a corporate event instruction, voting, etc.), the Central Depository receives relevant instruction from a depositary institution and acts in accordance with it and with the information from a foreign state depositary or an international depositary institution.
 

Interest payment

This process includes the following stages:

1) The Central Depository receives from a foreign state depository or an international depositary institution preliminary information on corporate actions (for example, interest payment) using SWIFT system.

2) The Central Depository sends preliminary information on corporate actions to the depositary institution, that has relevant securities on its account in the Central Depository at the moment of such information receipt, via IPS.

3) The Central Depository receives corporate actions performance confirmation from a foreign state depository or an international depositary institution via SWIFT system. Cash funds intended for interest payment are credited to the Central Depository cash account in a foreign state depository or an international depositary institution. 

4) The Central Depository sends corporate actions performance confirmation (interest payment, 
redemption) via IPS to the depositary institution, which clients are entitled to receive income (amounts of redemption) in accordance with the securities issue prospectus, according to which the relevant payment is made.

5) The depositary institution provides to the Central Depository an instruction for income (amount of redemption) transfer. (The Application form #15 is located under the link "Annexes to Regulations for depositary institutions", Application No. 15).

! We pay your attention to the fact that the instruction must be signed by one of the securities account managers of the depositary institution specified in the signature and seal samples card form.

6) Using an account opened at the Settlement Center the Central Depository transfers the cash funds to the beneficiary's account in accordance with the requisites specified in the instruction. The depositary institution is responsible for the correctness of filling out the bank details in the instruction and reimburses the expenses related to incorrect bank transfer carried out by the Central Depository on the basis of the depositary institution instructions.

For additional information, please contact us:

Cross-border transactions
CUSTOMERS’ SERVICE DEPARTMENT

(044) 591-04-13

 

dmbr_dep@csd.ua