NSD will not charge commissions until the end of 2023 for transferring securities with a foreign depository within the chain

MOSCOW. June 26 (Interfax) - The National Settlement Depository (NSD) has extended until December 31, 2023, the marketing period during which no commissions and fees are charged for transferring the securities of Russian issuers with the transfer of ownership if they are recorded in a foreign depository, the NSD said in a statement.

In order to do this, the securities transfer under the counter orders of the sender depositor and the receiver depositor must be conducted in cashless settlements, with the mandatory indication in the "Additional information" section of the instruction: "Transfer of securities with transfer of ownership rights, whose rights are recorded in a foreign depository".

The NSD until the end of the year does not intend to charge commissions or fees for transferring Russian securities without the transfer of ownership rights if they are recorded in a foreign depository. The transfer must also be conducted in cashless settlements.

Moreover, the marketing period is extended until December 31, during which no commissions or fees are charged for receiving and withdrawing foreign securities from deposit, when utilizing the services of foreign depositories, except for countries of the Commonwealth of Independent States (CIS), on the terms of Free of Payment (FOP) and Delivery Versus Payment (DVP).

The NSD does not receive any economic benefits from servicing certain transactions, upon the introduction of the marketing period with zero payments, and the transactions become permissible under the European Union's current sanctions regime imposed against the depository on June 3, 2022. The NSD last summer began abolishing commissions and fees for transactions related to transferring securities.