The Decision of the Board of Directors of the Bank of Russia dated March 17, 2023, titled "On Establishing the Procedure for a Client Depository to Submit Instructions for the Forced Transfer of Accounting for Rights to Transferred Securities, as well as the procedure and terms for a Russian depository (Russian registrar) to carry out operations aimed valuable," sets the guidelines for the return of Russian securities that are held on client accounts overseas.
Depositories are required to send instructions for the forced transfer of accounting for rights to transferred securities to the Russian depository (central depository) where the foreign nominal holder's depo account is opened or to the Russian registrar of an international company if the transferred securities are shares of an international company.
As a general rule, orders must be submitted in electronic format and must include the following information:
- Name, type, and category of the securities to be transferred, the depositary code of the securities to be transferred assigned by the central depository, and any other information available that allows for the identification of the securities to be transferred.
- Information on the number of transferred securities.
- Name of the foreign organization that is a registrar in accordance with its personal law, as well as, if available, details of a depo account opened with a Russian depository/personal account of a foreign registrar/personal account of a foreign nominee holder.
- Details of the depo account of the nominee holder of the client depository opened with the central depository/details of the personal account of the nominee holder of the central depository.
- Information available to the client depository under the circumstances about all organizations known to the client depository, in which the rights to transferred securities are taken into account.
The securities will be credited to nominee securities accounts opened with the central depository. If the number of securities to be transferred in the instructions submitted by client depositories exceeds the number of such securities accounted for in the depo account of a foreign nominee holder (personal account of a foreign nominee holder, personal account of a foreign registrar), operations aimed at the forced transfer of accounting for rights to transferred securities, are not carried out.
Nadmitov, Ivanov & Partners Law Firm advises on obtaining permission from the Government Commission on Monitoring Foreign Investment, sanctions, countersanctions, corporate law.
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