Bank of Russia establishes procedure for depositories to return Russian securities from abroad
The Bank of Russia has established a procedure for depositories to return Russian securities that are recorded in their clients' accounts abroad. Thus, foreign institutions will be excluded from the safekeeping of Russian securities, which will help protect investors’ rights and interests.
According to the new procedure, depositories should apply to the National Settlement Depository for the transfer, after which securities will be credited to their nominal holders’ depository accounts opened with the central depository. They may use this option only once.
In addition, beginning on 1 January 2023, the holders of securities who entrusted them to the custody of a foreign institution with the right to use these securities may apply to the Russian depository for their forced transfer to the domestic infrastructure. Furthermore, the Bank of Russia has set a period for which this procedure may be extended. If a foreign institution provides its justified objections to the debiting two days before the expiry of the period specified in the notice, the parties will have 30 more business days to settle the issues.
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