CBR determines procedure for depositories to return Russian securities from abroad
MOSCOW. March 21 (Interfax) - The Bank of Russia has determined the procedure for depositories to return Russian securities accounted for in their clients' accounts abroad to the Russian accounting infrastructure, the regulator said in a statement.
Depositories must submit transfer applications to the National Settlement Depository, a part of the Moscow Exchange Group, after which the securities will be credited to their nominee depo accounts opened with the central depository. This opportunity is being offered only once, the Central Bank said.
This will make it possible to exclude foreign organizations from the Russian securities accounting chain and protect the interests and rights of investors, the report says.
Russia's Central Bank has also announced that, from January 1, 2023, the owners of securities who have transferred them under an agreement for safekeeping to a foreign organization with the right to use can apply to the Russian depository for the forced transfer of the assets to the domestic infrastructure. If the overseas organization submits a valid objection to the write-off two days prior to the expiration date specified in the notice, an additional 30 business days will be given to resolve the issues.
These decisions were made by the Russian Central Bank Board of Directors in connection with law 519-FZ, which provides holders of securities of Russian companies that own them through foreign structures to transfer them to the Russian accounting infrastructure. To do this, they will have the right to apply to the Russian depository with a transfer application through May 1, 2023. There is also an automatic procedure for the transfer of accounting without the owners' request, which will take place in cases where securities are "registered" in a foreign infrastructure on the accounts of Russian (client) depositories acting as nominal holders and include all the necessary information about the owners. In this case, the client depository will have to start the procedure for replacing securities accounting by May 1, 2023.