The Association of Eurasian XIII International Central Securities Depositories AECSD Conference

Fall 2016 (date TBA), Georgia AECSD PROFILE Hosted by: Georgian Central Securities Depository

AECSD SECRETARIAT National Settlement Depository (NSD)

Postal address: 12, Spartakovskaya St. Moscow 105066, Russia Telephone: +7 495 232 0513 Fax: +7 495 956 0938 E-mail: [email protected] Web-site: www.aecsd.org

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CONTENTS

Highlights of the 2014 5

Key developments in the CIS post-trade industry in 2014 5

About AECSD 7

Republic of Armenia Central Depository of Armenia 12

Republic of Azerbaijan The National Depository Center 14

Republic of Belarus Republican Central Securities Depository 16

Georgia Georgian Central Securities Depository 18

Republic of Kazakhstan Central Securities Depository 20

Kyrgyz Republic Central Depository 22

Russian Federation National Settlement Depository 24

Ukraine Settlement Center The National Depository of Ukraine 26

Republic of Uzbekistan State enterprise Central Securities Depository 29

List of member organizations 30

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HIGHLIGHTS OF THE 2014 • The CSD began providing central clearing RUSSIA and settlement services the same day when • Corporate action reform was launched. transactions concluded at the exchange. • The total value of securities held at AECSD • The great majority of Eurasian CSDs (6 out of 10) • E-proxy voting was launched. members reached over USD 0.6 trillion as of act as national numbering agencies (NNAs), which KAZAKHSTAN end 2014 (48% is equities, 41% is government, means that they are responsible for allocating ISIN • Euroclear and Clearstream entered the corporate • All pension funds were merged into a sole municipal and corporate bonds, 6% is securities and municipal debt market, and then – the equity codes to new securities. governmental pension fund. of foreign issuers, and 4% other type of securities). market. • In a half of Eurasian CSDs, end accounts • The CSD conducted a self-assessment • AECSD members collectively processed • Technical preparation of the project of repo are maintained at the level of the CSD. Not all of observance of CPSS-IOSCO principles for FMI over 3.1 million delivery instructions valued almost transactions with the Federal Treasury with NSD’s these CSDs operate a pure “direct holding” model, in accordance with Kazakhstan’s National ’s USD 5 trillion. collateral management services was completed. and many also offer the possibility to use omnibus initiative. • CSDs accept a wide variety of financial instruments accounts. • The project of e-matching for OTC transactions • The Financial Sector Assessment Program was held for settlement. All Eurasian CSDs settle equities was launched. • There is a variety of ownership models, by the World Bank and IMF. and corporate bonds. A vast m ajority of CSDs with 30% of Eurasian CSDs being State-owned, • The NSD correspondent network was expanded, • The CSD began providing trade repository services. also settle government securities (government 30% exchange-owned, and 20% userowned. the company established correspondent relations bonds and Treasury bills). In those markets where The remaining 20% CSDs present a hybrid • Thomas Murray upgraded the CSD’s rating with HSBC and ICBC. government securities are not settled by the CSD, ownership structure. from А to А+. it is usually because there is a dedicated securities • NSD opened foreign nominee accounts for CSDs settlement system for such securities operated • As of December 2014, Eurasian CSDs collectively • The CSD began assigning IDRs to rights of claim of Armenia and Kyrgyzstan. by the central bank. employed close to 850 people across Eurasia. to issuers’ liabilities on equity securities with an • MoU with Turkey’s CSD was signed. expired circulation term which were not repaid by the issuer. • NSD as a Substitute Numbering Agency began assigning ISINs and CFIs to securities KEY DEVELOPMENTS IN THE CIS KYRGYZSTAN of Uzbekistan’s issuers. POST-TRADE INDUSTRY IN 2014 • The agreement for opening a foreign nominee • NSD was registered with the US IRS in compliance account with Russia’s CSD (NSD) was concluded. with the FATCA requirements. The bilateral interaction channel was launched. AZERBAIJAN BELARUS • NSD acted as a withholding agent for payment • The CSD was connected to the EDI system of of income on equity securities. • Cooperation memorandum with Merkezi Kayıt • The draft law “On Securities Market” was adopted Russian CSD (NSD). Kuruluşu, Turkey’s CSD, was signed. by the Chamber of Representatives of the National UZBEKISTAN Assembly of Belarus and approved by the Council • The software for interactions and information • Agreement for using new electronic services with of the Republic of Belarus. exchange between information systems of the CSD • A new version of the Law “On Joint one of the leading brokerages was concluded. and the National Bank of the Kyrgyz Republic as a Companies and Shareholder Rights Protection” • The CSD’s proposals to simplify the procedure • The CSD switched to the new method of part of the project aimed at transfer and placement came into effect. of Belarusian securities transfer to foreign settlements on securities in the formal market. of governmental securities to the Kyrgyz Stock depositories’ depository accounts were accepted • of shares changed. The par value cannot Exchange. • Resolution on using SWIFT for message exchange by the regulator, approved and will be included exceed UZS5,000 (the previous law established the between infrastructural organizations was taken. in the current legislation in H1 2015. • The CSD purchased equipment and developed minimal par value at not less than UZS100). software for the arrangement of the EDI system for • The CSD began providing clearing operations and • The CSD was connected to NSD’s LUCH software. • Public subscription for shares should be held only the Kyrgyz participants. settlements on derivatives. in on-exchange and formal OTC securities markets. GEORGIA MOLDOVA • Acts regulating the activities in securities market ARMENIA • Trading sessions at GSE now are held daily instead were amended. • An opportunity to switch to Т+0 on one type of • Contribution pension system was launched. of three times per week. The length of sessions transactions held at Moldova’s Sock Exchange was • A norm establishing the order of concluding and increased, GSE added trading sessions for securities • Cooperation memorandum with NSD, Russia’s CSD, provided registering transactions with securities denominated in foreign currency, in particular, was signed. A foreign nominee account in on-exchange and OTC securities markets in US dollars. • Government of the Republic of Moldova amended in the electronic form without using paper was opened with NSD. the Law “On ”; according to the • The process of integration of registrars continues documents was adopted. amendments, the National Bank and the Ministry • A foreign nominee account was opened (two major registrar remained). with Clearstream. of Justice of Moldova received a status of central • Quotas and a procedure of admitting to placing • An EDI system for interactions between the CSD securities depository and circulating securities issued by non-residents • The CSD received a status of a full member and registrars, broker firms and EDI system’s in the territory of Uzbekistan and by residents - • Restrictions related to local professional of the Association of National Numbering Agencies members was implemented. beyond the territory of Uzbekistan were participants in the shareholder structure were (ANNA). established. • Terms of transmitting instructions to the depository lifted. An opportunity to discuss correspondent in the course of a trading session were simplified. relations with international CSDs emerged. • A section of corporate securities with special

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placement terms was opened in the Toshkent stock • Procedures of paying income/redemption sums GENERAL INFORMATION exchange. in cash via the CSD and Settlement Center were improved. ABOUT THE ASSOCIATION • The CSD began interactions with NSD, Russia’s CSD, Substitute Numbering Agency in the CIS countries, • The process of payment via the National to assign international codes to securities issued by Depository of Ukraine was changed. The Association of Eurasian Central Securities countries’ central depositories were exchanging Uzbekistan’s issuers. Depositories (AECSD) unites the central depositories opinions on key issues. Year by year the scale of the • Regulations on establishing the characteristics of the CIS countries. The Association’s mission is to event became larger. The international conference of a fictitious nature of securities issuers and on UKRAINE develop and enhance CSDs operations, to create a focused on interaction of the CIS countries’ central including these issuers in the list of issuers with common depository environment, and to integrate depositories held in Moscow in 2004 represented • Final provisions of the Law “On Depository System fictitious characteristics was put into effect. of Ukraine” came into effect. the central depositories of the CIS countries into a new stage in the history of the meetings. The • Thomas Murray assigned the private rating to the a global securities settlement system. conference revealed that despite difference in • Work on amending the Law “On Joint Stock National Depository of Ukraine for the first time. levels of development of the stock markets in Discussion of the issues of interactions between Companies” with regard to decreasing the quorum various CIS countries an issue of market integration • The CSD switched to new versions of information central depositories of the CIS countries began of general shareholder meetings from 60 to 50% was very important, that there was a real interest processing system software in 2001 in Tashkent at the international seminar was done. in harmonization of the countries’ legal acts and “Integration of Depository Systems as the Basis • The process of limitation of rights of shareholders, in establishing of inter-depository relations. The • The regulator made a decision on a procedure for Efficient Interaction on International Securities which did not conclude contracts with depositories participants of the conference made decision on of issuing and circulating bonds by international Markets.” At the event the professional participants was automated. formation of the Association of Eurasian Central financial organizations, on a competitive selection of securities market were able for the first time Securities Depositories (AECSD). by the regulator of a for • Issuers received a right to receive shareholder to get acquainted with the level of development placing and circulating these financial instruments. register via an EDI system of a depository of the settlement systems and stock markets of On 22 December, 2004 the first (foundation) authorized to receive registers on behalf of issuers. the neighbor countries and to find ways of future conference of the AECSD was carried out. It was • An Order of protecting the interests of owners cooperation. At that time many participants of the organized by the Not-for-Profit Partnership “The of inscribed securities in case of absence of • Principles of servicing foreign issuers’ securities seminar pointed out the felt need in establishing National Depository Center” (Russia) and Closed Joint documents of the system of register of owners were enhanced. the partner relations between organizations, in Stock Company "Depository Clearing Company". The of inscribed securities of a certain issue was • A service of safe storage of backup copies integrating efforts aimed at improvement and conference’s goals included signing the resolution on approved. of depository databases was provided. harmonization of securities market legislation and the AECSD establishment, formation of its governing • Approaches to the financial monitoring systems in building efficient interactions between stock bodies and development of its working programs. were brought into conformance with international markets in general. The members of the Association include its founders norms. Later on, such seminars were held on an annual and other participants joining the Association basis. In 2002 the meetings were held in Almaty, in compliance with the procedure provided Kazakhstan, and Bishkek, Kyrgyzstan, in 2003 by the Clause 5 of the Resolution. the seminar was carried out in Baku, Azerbaijan. At the meetings the representatives of the CIS

AECSD OBJECTIVES

In accordance with the Resolution the main objective transaction processing, and rules and regulations of the Association of Eurasian Central Securities governing the depositories' activities; Depositories is establishment of a common • adoption of international messaging standards “depository environment”, including: for depository transactions and their use in the • harmonization of the regulatory framework; national practice; • development of an optimal model for the • development of Electronic Document Interchange recordkeeping system to be used in the securities (EDI); market of the member countries; • development of harmonized standards for • establishment of depository links among the depository recordkeeping and reporting; members to support cross-border securities • supporting a coordinated process to enable the transactions; Association members to integrate into the global • standardization of the technologies for the post-trade infrastructure. depository operation, procedures for depository

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THE MEMBERS OF THE ASSOCIATION INCLUDE AECSD’S GOVERNING BODIES THE FOLLOWING ORGANIZATIONS • General Meeting of the Association performing ongoing management of the Association in the period between the General • Chairman Meetings of the Participants of the Association and Armenia Central Depository of Armenia Open Joint-Stock Company GENERAL MEETING OF AECSD MEMBERS providing implementation of the Association's goals, Resolution and decisions by the General Meetings. The General Meeting of the Association's Members Azerbaijan ZAO “The National Depository Center of the Azerbaijan Republic” is a primary AECSD's governing body; it is called The Chairman is re-elected annually in accordance annually. A Participant of the AECSD acting with the AECSD Charter. Gaioz Sanadzee Gaioz in the country where the General Meeting is held Sanadze, General Director of the Georgian Central Belarus Republican unitary entity “Republican Central Securities Depository” is the Organizer of the General Meeting. The General Securities Depository, currently occupies the . Meeting's decisions are made by majority vote of the THE CHAIRMAN OF THE ASSOCIATION'S meeting's Participants. Each Participant has one vote. Georgia Georgian Central Securities Depository FUNCTIONS GENERAL MEETING'S FUNCTIONS • Management of the Association's activities, India Central Depository Services Limited (CDSL) 1. Making decisions obligatory for the AECSD coordination of the actions of the Association's Participants Participants National Securities Depository Limited (NSDL) 2. Approval of the AECSD annual activities report • Provision of organization of coordinating events necessary for preparation of the General Meeting 3. Amending of the Resolution of the Association's Participants, development Kazakhstan Joint-Stock Company “Central Securities Depository” 4. Selection of the Organization-AECSD Participant of the Meeting's agenda acting as the AECSD Secretariat • Chairing the General Meeting Kyrgyzstan Closed Joint-Stock Company “Central Depository” Kyrgyz Republic 5. Formation of the AECSD Working Groups and • Signing of the protocol of the General Meeting appointment of the chiefs of the Working Groups of the Association's Participants jointly Moldova National Securities Depository of Republic of Moldova 6. Setting of tasks for the AECSD Working Groups with the Association's Secretary 7. Acceptance of the AECSD Working Group's reports • Calling of Extraordinary General Meeting Russia National Settlement Depository (NSD) and approval/disapproval of the reports of the Association's Participants 8. Stopping of the AECSD Working Group's activities • Provision of the observation of the Resolution Turkey Merkezi Kayit Kurulusu A.S. (MKK) 9. Discussion of the issuers of the Participants' • Coordinating the Working Groups' activities common interest • Official representation of the Association, building the cooperation and partner relations with Ukraine Public Joint-Stock Company “Settlement Center“ 10. Setting the venue and date of the AECSD's next international and foreign associations on behalf AGM of the Association PJSC “The National Depository of Ukraine“ (NDU) 11. Implementation of other appropriate functions • Representation of the Association's interests corresponding with the AECSD's goals. in its interactions with third parties Uzbekistan State enterprise “Central Securities Depository“ (UzCSD) In 2015 the 12th Annual General Meeting of AECSD • Implementation of other necessary functions in the members took place in Almaty (Kazakhstan). In 2016 period between the General Meetings the 13th Annual General Meeting of AECSD members of the Participants of the Association will take place in Georgia. National Depository of the Republic of Uzbekistan “VAQT” joined the Association as an observer Recordkeeping is being held by the Association's th More information about previous and upcoming at the 5 AECSD conference held in Almaty in October 2008. ROSBANK (OJSC JSCB) joined the Association Secretariat (NSD, the Russian Federation), a New general meetings is available in “The Materials at the annual general meeting of AECSD members held in Minsk in September 2010 as an observer. Participant of the Association selected and approved of the General Meetings” Section on the web-site. In September 2015 two new companies – Clearstream Banking (Luxemburg) and specialized depository by the General Meeting of the Participants INFINITUM (Russia) – joined the Association at the annual general meeting in Almaty as observers. The Chairman of the Association is an executive body of the Association.

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THE ASSOCIATION COMPRISES AECSD takes a proactive part in the regular meetings TABLE. AECSD MEMBERS’ CORRESPONDENT RELATIONS 3 WORKING GROUPS of the World Forum of CSDs, where representatives of all central depositories’ associations discuss post- Cross-border links: 1. CSD Legal Issues Working Group trading environment and its development, Outbound: 15 2. Depository Services Working Group in international conferences such as SIBOS and NeMa, Inbound: 15 in order to share experience and exchange opinions, Bilateral: 12 3. Administration of the Association's Web-site to coordinate industry initiatives, and to form its position in a dialog with the regulators and other AECSD members’ correspondent relations organizations coordinating the development are represented in the Table. of the and its infrastructure INBOUND 15 all over the world. COUNTRY ARM AZE BLR GEO KAZ KGS MDA RUS UKR UZB THE ROLE OF CSDS AS MARKET INFRASTRUCTURES Armenia - - - √ - - √ - - 2

A Central Securities Depository (CSD) is an entity SETTLEMENT which provides a central point for depositing Azerbaijan ------0 CSDs operate technical platforms allowing for the financial instruments (securities) such as bonds settlement of securities transactions. In practice they and shares. CSDs’ clients are financial institutions reduce risk for the buyer and the seller of securities (custodian and brokers), rather than individual Belarus ------√ - - by offering simultaneous “delivery versus payment” 1 . (DVP), so that the cash is only paid to the seller once CSDs typically perform three main functions: the securities are delivered to the buyer. Georgia ------0 ISSUANCE SAFEKEEPING CSDs constitute the first entry point for newly issued CSDs also provide securities accounts to their securities. Following the creation of new securities participants and manage the rights and obligations Kazakhstan - - - - √ - √ - - 2 by issuers, they record the initial deposit. They linked to securities holdings. For example, they typically also act as guardians of the integrity process dividend and interest payments based OUTBOUND of the issue, making sure that at any point in time on the information received from the issuer. Kyrgyzstan - - - - √ - √ - - 2 the number of securities initially created equals the total number of securities in circulation. Moldova ------0

Russia √ √ √ - √ √ - √ - 6

Ukraine - - √ - - - - √ - 2

Uzbekistan ------0

15 1 1 2 0 3 2 0 5 0 0

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• Value of assets under custody held on behalf • Bonds: CORPORATE ACTIONS of customers, USD bln: 3.0 • On-exchange: T+0 • All corporate actions entitlements are based • Number of securities transactions settled, • OTC: T+n on the settled position as of the record date. in thousands: 1.4 MARKET CUT-OFF TIMES • There is no ex-date concept. • Value of securities transactions settled, USD bln: 1.0 Government bonds, corporate securities: • Information on corporate events can be made mass available by the CSD on demand of company, but • Pre-open session: 10.50 – 10.59 • Country’s Ratings: for the listed companies publication of corporate • Moody’s: Ba3 • Auction: 11.00 – 15.00 events is obligated. BASIC INFORMATION • Fitch: B+ • Post-trade (closing session): 15.00 – 15.05 • For corporate event with a record date the issuer 13 employees (number of full time equivalents • Depository Rating: Credit market (7 days): acquires the register of shareholders for such a working for the CSD) date via its registrar. The registrar then requests • Thomas Murray: BB– • Trading session: 11.00-13.00 Banking license nominee holders to disclose final beneficial owners • Post-trade (closing session): 13.00 – 13.10 to determine the full list of shareholders. + NNA MAJOR MARKET PARTICIPANTS (INFRASTRUCTURE) REPO, currency swaps: PROXY VOTING LOU for LEI • Regulators: Central bank of Armenia, • Trading session: 11.00 – 15.00 The shareholders can exercise their voting right BIS SETTLEMENT MODEL www.cba.am by proxy voting except the AGM and other meetings FX market: Model 1 • Self-regulated organizations: None settled by the low. • Trading session: 11.00 – 15.00 + Model 2 (OTC: corp. securities) • : “ OMX Armenia” OJSC, TAXATION www.nasdaqomx.am • Post-trade (closing session): 15.00 – 15.05 + Model 3 (On-exchange: corp. securities) INCOME TAX: Overnight • The functions of a centralized custodian, centralized SECURITIES ACCOUNTS • Withholding tax on interest income is 10% both registry and settlement system operator of • Trading session: 11.00-15.00 for resident and foreign individual investors. Total: 103,016 securities performs Central Depository: • Post-trade (closing session): 15.00 – 15.05 • There is no withholding tax on dividend income Legal entities: 1,841 “Central Depository of Armenia” OJSC, www.nasdaqomx.am OTC trades: and interest income on government bonds both Individuals: 101,175 for resident and foreign individual investors. MARKET SPECIFICS • FoP: 09.00 – 17.00 SECURITIES TRANSACTIONS • There is no capital gains tax both for resident • DvP: 09.30 – 15.30 • Time zone: Value of deliveries, USD mln and foreign individual investors. • GMT + 4h INVESTOR DISCLOSURE REQUIREMENTS PROFIT TAX: Number of deliveries, pcs • Local currencies: • Shares traded on stock exchange: 5%, 10%, 20%, • There is no withholding tax on dividend income 1 574 • Armenian Dram (AMD) 50%, 75% and more. 1 360 for residents (legal entities). 1 150 • Number system: • Shares of financial institutions: 10% and more. • Withholding tax for foreign investors (legal entities) • ISIN; local registration number; registration • All companies: 100% on dividend income is 10%. number for government securities • Government bonds and corporate bonds are taxed NOMINEE CONCEPT 638 594 1 049 All Armenian equity and debt securities are issued at 20% for residents (legal entities) and 10% in dematerialized form and are held by “Central The custodian system of corporate securities in for foreign investors (legal entities). 2012 2013 2014 Depository of Armenia” OJSC if there is an appropriate the RA is two-level. The Central Depository acts • There is no capital gains tax for residents (legal custodial service contract between Depository and as the first level (centralized custodian), while the * entities). KEY MARKET FIGURES the client. custodians act as the second level. Nominee accounts in the Central Depository can be opened both for • Realized capital gains tax is 10% for foreign • , USD mln: 169.2 CDA is a centralized custodian and a registrar, clients resident and non-resident custodians. investors (legal entities). • Average Daily Trading Volume, are serviced via Account Managers that carry out all The custodian system of government bonds slightly In order to benefit from tax rates as provided USD mln: 56.16 operations, except for clearing and netting, in a single CDA system. differs from corporate bonds custodian system. by the DTT, foreign investors have to provide a tax • Listed Companies: 15 Central Bank of Armenia acts as first level custodian certificate (certificate of residence) confirming SETTLEMENT CYCLES for government bonds in this system. The Armenian their tax residency to the Armenian tax agent • Financial Instruments: Equities, Bonds, law prohibits non-resident institutions to act as sub- for the current year. Units of Pension Funds • : custodians for government bonds. • On-exchange: T+0 * as of 31.12.2014 • OTC: T+n

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• Number of securities transactions settled, MARKET CUT-OFF TIMES in thousands: 6.6 On-exchange trades: • Value of securities transactions settled, • 10.00 – 16.00 USD bln: 7.5 OTC trades: • Country’s Ratings: • Moody’s: Baa3 • FoP: 09.00 – 18.00 • Fitch: BBB– BASIC INFORMATION • DVP: 09.00 – 18.00 • S&P: BBB– 56 employees (number of full time equivalents INVESTOR DISCLOSURE REQUIREMENTS • Depository Rating: working for the CSD) The information can be disclosured only • Thomas Murray: BBB Banking license to the securities owners or their authorized MAJOR MARKET PARTICIPANTS representatives and in cases stipulated by + NNA the legislation by the request of notary and court. (INFRASTRUCTURE) LOU for LEI • Regulators: State Committee of Securities, NOMINEE CONCEPT BIS SETTLEMENT MODEL www.scs.gov.az Beneficial ownership structure at CSD level. Model 1 • Self-Regulated organizations: AFBIA, CORPORATE ACTIONS + Model 2 www.afbia.az Conducting of meetings, issuing (paying) Model 3 • Stock Exchange: , of , rights issue, secondary , www.bfb.az SECURITIES ACCOUNTS consolidation, conversion and splitting of securities. • Settlement Depositories: National Depository Total: 104,837 Center (NDC), www.mdm.az PROXY VOTING Legal entities: 736 • Clearing House: National Depository Center (NDC), Presence of the representative with the power Individuals: 104,101 www.mdm.az of attorney is required. SECURITIES TRANSACTIONS • Registrars: National Depository Center (NDC), TAXATION www.mdm.az Value of deliveries, USD mln • For investors: 10% from dividends and interest income. Number of deliveries, pcs MARKET SPECIFICS • Time zone: • For Service providers: provision of financial services is exempted from VAT. Financial service 6 624 • GMT + 4h (winter) is any transaction connected with the circulation • GMT + 3h (summer) 4 693 of shares, bonds, certificates, bills, checks or • Local currencies: other securities. Services on safekeeping of bills, • Manat (AZN) securities and other valuables are not qualified 2 351 7 452 as financial services. • Number system: 2013 2014 • ISIN, local registration number KEY MARKET FIGURES* 99% of securities are held in book-entry form. • Market Capitalization, SETTLEMENT CYCLES USD mln: 26.8 • Stocks: • Average Daily Trading Volume, • On-exchange: T+1 USD mln: 36 • OTC: T+3 • Listed Companies: 1 • Bonds: • Financial Instruments: Equities, Bonds, Notes, • On-exchange: T+0 , T+1 Housing certificates • OTC: T+3 • Value of assets under custody held on behalf of customers, USD bln: 20.0

* as of 31.12.2014

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settlement bank), and the Ministry of Finance of the Securities upon reduction of the number of shares in PROXY VOTING Republic of Belarus (stock market regulator, acting the company. Similar requirements apply where the A shareholder may vote either in person, through its Securities Department) owner of a large stake in the company has acquired by personally attending an annual general meeting each further five per cent (5%) of ordinary shares • Self-regulatory organizations: None; there is the of shareholders, or through a proxy acting under Association of Securities Market Participants in the company. a notarized power of attorney. In addition, a trustee holding assets in trust may take any legal and practical • Stock exchange: OJSC Belarus Currency-Stock NOMINEE CONCEPT steps with respect to such assets on behalf of the trust Exchange, www.bcse.by There is no concept of a “nominee” in the Belarusian settlor or beneficiaries in accordance with the trust BASIC INFORMATION • Settlement depositories: the Republican Unitary law. The Republic of Belarus has a two-level depository agreement. Where the form and type of trust provides 23 employees (number of full time equivalents Enterprise “Republican Central Securities system, with sub-depositories holding correspondent that a shareholder’s rights, including the right working for the CSD) Depository” (RUE RCSD) (stock exchange’s LORO securities accounts with the CSD. Such accounts to attend general meetings of shareholders with the settlement depository), www.centraldepo.by are being used to hold securities (in aggregate, broken right to vote on any matters reserved to the general Banking license • Clearing (settlement) house: No down by issue) rights to which are recorded in owner’s meeting (if the shareholder is a holder of ordinary + NNA securities accounts held with the relevant sub- shares), or with the right to vote (if the shareholder is • Registrars: No; there is a two-level depository depositories. a holder of preferred shares), the right to vote LOU for LEI system, which includes the central securities at general meetings of shareholders may be delegated BIS SETTLEMENT MODEL depository and 33 sub-depositories CORPORATE EVENTS to the trustee. Model 1 MARKET SPECIFICS • The Law on Depository Activities defines a register TAXATION of securities owners as a set of data concerning Model 2 • Time zone: • Income tax is imposed on gross profit from owners of the same-type securities issued • GMT +3h transactions with securities, as well as dividends + Model 3 (On-exchange) by a particular issuer, as kept by a professional and equivalent income accrued by Belarusian • Local currencies: market participant authorized to keep a register SECURITIES ACCOUNTS organizations. • Belarussian ruble (BYR) under an agreement entered into with the issuer. Total: 21,016 • The following are not treated as dividends: payments • Number system: • In accordance with the law, a register is kept Legal entities: 1,423 made to an organization’s member upon liquidation • Identification code by an issuer’s depository on the basis of information of the organization or member’s withdrawal from Individuals: 19,593 concerning the status of securities accounts • ISIN; CFI – are assigned on voluntary basis upon the organization, provided that the amount paid held with the issuer’s depository and/or other does not exceed the member’s contribution to the * an interested party’s request KEY MARKET FIGURES depositories that record rights to securities issued organization’s ; and distributions made • Market Capitalization, USD bln: 31.0 SETTLEMENT CYCLES by the issuer. to an organization’s members (shareholders) in the form of shares (units) in the organization, or in the • Average Daily Trading Volume, USD mln: 19.0 • Stocks: • Registers of bond owners are drawn up for the purpose of principal and income payment form of an increase in the nominal value of a share • On-exchange: T+0, T+n, NS, S-REPO (unit), provided that such distributions are made by • Listed Companies: 2,424 as at the dates prescribed by the prospectus • OTC: T+n the organization using its own resources, and further • Financial Instruments: Equities, Bonds, Non- and the resolution to issue such bonds. provided that such distributions do not result in documentary mortgage securities • Bonds: • A list of shareholders entitled to receive dividends is a change in any of the members’ (shareholders’) • On-exchange: T+0, T+n, NS, S-REPO • Value of assets under custody held on behalf drawn up on the basis of the same register interest in the organization’s share capital, or of customers, USD bln: 30.8 • OTC: T+n of shareholders that was used to draw up a list a change in such interest is less than 0.01%. of persons entitled to attend the general meeting • Number of securities transactions settled, MARKET CUT-OFF TIMES • The income tax rate is 18%. The rate decreased of shareholders at which the resolution to pay such in thousands: 86.5 by 50% applies to profits from the sale of all or some On-exchange trades: dividends was passed. of the shares (units) in an organization domiciled • Value of securities transactions settled, • 09.00 – 16.50 in the Republic of Belarus. The income tax rate USD bln: N/A • A list of persons entitled to attend a general meeting of shareholders is drawn up on the basis applicable to dividends is 12%. INVESTOR DISCLOSURE REQUIREMENTS • Country’s Ratings: of the data recorded in the register of shareholders • The income tax rate applicable to foreign • Moody’s: An owner of a large stake in a company (5% of the as at the date determined by a company’s organizations that do not operate in the Republic • S&P: В–/В company’s share capital) is required to disclose its authorized management body. of Belarus through a permanent establishment shareholding to the Securities Department, the is 10% (for income on securities the terms and • As there is no concept of a “nominee” MAJOR MARKET PARTICIPANTS stock exchange (if the company is listed on the conditions of issuance of which provide in the Belarusian law, a non-resident may only be (INFRASTRUCTURE) stock exchange), and the company itself within five for the payment of income in the form of interest included on the list either as a securities owner or business days following the date when the shares (discount)), or 12% (for dividends or equivalent • Regulators: the National Bank of the Republic as a person holding securities under an agreement are credited to the owner’s securities account, or income). of Belarus (payment system, stock exchange’s within thirty calendar days following the date when (e.g. as a pledgee). • The individual income tax rate applicable * as of 31.12.2014 relevant changes are made in the Public Register of to dividends is 12%.

www.aecsd.org www.aecsd.org 18 GEORGIA | GEORGIAN CENTRAL SECURITIES DEPOSITORY GEORGIA | GEORGIAN CENTRAL SECURITIES DEPOSITORY 19

• Value of securities transactions settled, INVESTOR DISCLOSURE REQUIREMENTS USD bln: 0.022 Didn't exist • Country’s Ratings: • Moody’s: Ba3 NOMINEE CONCEPT • Fitch: BB– Nominee accounts can be opened in the name • S&P: BB– of licensed (in any countries) brokerage companies, banks, custodians or depositories. BASIC INFORMATION MAJOR MARKET PARTICIPANTS 4 employees (number of full time equivalents (INFRASTRUCTURE) CORPORATE ACTIONS working for the CSD) • All corporate actions entitlements are based • Regulators: National Bank of Georgia, on the settled position as of the record date. Banking license www.nbg.gov.ge • There is no ex-date concept. NNA • Self-Regulated organizations: GSE, GCSD, LOU for LEI www.gcsd.ge, www.gse.ge • There is no single source of corporate action information. Information on corporate events • Stock Exchange: Georgian Stock Exchange (GSE), BIS SETTLEMENT MODEL is available in mass media, at the web sites www.gse.ge + Model 1 (for all types of transactions) of the issuers, registrars, CSD and other sources • Settlement Depositories: Georgian Central such as databases of information agencies, etc. Model 2 Securities Depository (GCSD), www.gcsd.ge • For corporate event that requires a record date Model 3 • Registrars: 3 the issuer acquires the register of shareholders SECURITIES ACCOUNTS for such a date via its registrar. The registrar MARKET SPECIFICS then requests nominee holders to disclose final Total: No • Time zone: beneficial owners to determine the full list of shareholders. Legal entities: No • GMT +3h Individuals: No • Local currencies: PROXY VOTING SECURITIES TRANSACTIONS • Lari (GEL) The shareholder can exercise their voting rights Value of deliveries, USD mln • Number system: by attending the AGM personally. • ISIN; local registration number Number of deliveries, pcs TAXATION All Georgian equities are issued in dematerialized • Residents and nonresidents taxed similar registered form and are held by independent licensed • State and corporative bonds are taxed at 20% 500 500 companies, registrars. 400 • Withholding tax for investors on interest income SETTLEMENT CYCLES and on dividend income is 5% • Stocks: 25 30 22 • Capital gains tax is 15% • On-exchange: T+1 2012 2013 2014 • OTC: T+n KEY MARKET FIGURES* • Bonds: • On-exchange: T+1 • Market Capitalization, USD bln: 1.0 • OTC: T+n • Average Daily Trading Volume, USD thousands: 291 (with fixing) MARKET CUT-OFF TIMES • Listed Companies: 129 On-exchange trades: • Financial Instruments: Equities • 12.00 – 14.30 • Value of assets under custody held on behalf OTC trades: of customers, USD bln: 0.01 • FoP: 09.00 – 16.30 • Number of securities transactions settled, • DVP: 10.00 – 16.30 in thousands: 0.4

* as of 31.12.2014

www.aecsd.org www.aecsd.org 20 KAZAKHSTAN | CENTRAL SECURITIES DEPOSITORY KAZAKHSTAN | CENTRAL SECURITIES DEPOSITORY 21

• Value of securities transactions settled, INVESTOR DISCLOSURE REQUIREMENTS CORPORATE ACTIONS USD bln: 1,588.9 According to the legislation of the Republic • Information on corporate events is available • Country’s Ratings: of Kazakhstan at acquisition of ten or more percent in mass media, at the web sites of the Kazakhstan • Moody’s: Baa2 placed (minus exclusive and redeemed by society) stock exchange and The Depository of financial • Fitch: BBB+ bank or the insurance (reinsurance) company shares, statements. the physical or legal entity has to receive a consent • For corporate event that requires a record date • S&P: BBB of authorized body (National Bank of the Republic BASIC INFORMATION the issuer acquires the register of shareholders of Kazakhstan) to receiving the status of the large • Depository Rating: for such a date via The Integrated Securities 62 employees (number of full time equivalents participant of the relevant organization. For receiving • Thomas Murray: A+ Registrar. working for the CSD) a consent the person, wishing to become the large participant of bank or insurance (reinsurance) + Banking license MAJOR MARKET PARTICIPANTS PROXY VOTING (INFRASTRUCTURE) company, is obliged to present to authorized body + NNA the statement for acquisition of the status The shareholder can exercise their voting rights: • Regulators: The National Bank of Kazakhstan, by attending the AGM personally or by proxy. LOU for LEI of the large participant of bank with attached www.nationalbank.kz documents and the data determined by TAXATION BIS SETTLEMENT MODEL • Stock Exchange: Kazakhstan Stock Exchange, the legislation of the Republic of Kazakhstan. • State bonds and municipal bonds aren't taxed. + Model 1 www.kase.kz Besides that, the person independently or in Model 2 • Settlement Depositories: Central Securities common with the affiliated persons, having intention • Withholding tax for foreign investors on interest Depository, www.kacd.kz to get on secondary securities market thirty or more income and dividend income is 15% for shares. Model 3 percent of voting shares of joint-stock company • Foreign investors have the right to use DTT • Clearing House: None or other number of voting shares, who in result of SECURITIES ACCOUNTS regulations • Registrars: The Integrated Securities Registrar, such acquisition will belong thirty or more percent Total: 58 www.tisr.kz of voting shares of joint-stock company, is obliged • In order to benefit from tax rates as provided Legal entities: 58 to send the notice of it to this joint-stock company by the DTT. MARKET SPECIFICS and to authorized body. The notice has to contain Individuals: No • Time zone: information about number of the acquired shares, SECURITIES TRANSACTIONS the estimated buying price and other information • GMT +5h (summer) determined by regulations of authorized body. Value of deliveries, USD mln • GMT +6h (winter) In the other cases the duty of disclosure of Number of deliveries, pcs • Local currencies: information on the transaction is assigned to the • Tenge (KZT) issuer. For example, the issuer is obliged to open 134 288 information before authorized body and shareholders • Number system: of securities about change of structure of the 100 309 • ISIN; CFI; National identification number shareholders owning ten and more percent of its 81 548 voting shares. SETTLEMENT CYCLES 799 662 656 007 1 588 875 • Stocks: NOMINEE CONCEPT • On-exchange: T+0 CSD opens securities accounts on the name of: 2012 2013 2014 • OTC: T+0, Т+n • professional participants of securities market of the KEY MARKET FIGURES* • Bonds: Republic of Kazakhstan, who are nominee holders for securities (custodians or brokers who have the • Market Capitalization, USD bln: 25.0 • On-exchange: T+0 right to maintain clients' accounts as nominee • Average Daily Trading Volume, USD bln: 1.1 • OTC: T+0, Т+n holders); • Listed Companies: 134 MARKET CUT-OFF TIMES • organizations, that implement dealer activity based • Financial Instruments: Equities, Bonds, Eurobonds, on the license of authorized body or according to On-exchange trades: Notes, Euronotes, Units, Depository Receipts the legislation of the Republic of Kazakhstan; • 11.30 – 17.30 • Value of assets under custody held on behalf • National Bank of the Republic of Kazakhstan (if it of customers, USD bln: 88.9 OTC trades: doesn't under the effect of two above subitems); • Number of securities transactions settled, • FoP: 09.30 – 18.30 • foreign depositories; in thousands: 134.3 • DVP: 09.30 – 17.30 • foreign custodians.

* as of 31.12.2014

www.aecsd.org www.aecsd.org 22 KYRGYZSTAN | CENTRAL DEPOSITORY KYRGYZSTAN | CENTRAL DEPOSITORY 23

• Value of securities transactions settled, NOMINEE CONCEPT • The central securities depository acts as a nominee USD bln: 0.000022 holder of securities and may not attend general • The central securities depository holds its clients’ meetings of shareholders, unless a CSD’s client • Country’s Ratings: – securities as a nominee under agreements entered issues a power of attorney in the form approved into with such clients. • Depository Rating: – by the Kyrgyz laws to authorize the CSD to • The central securities depository transfers securities represent the client at such general meetings. MAJOR MARKET PARTICIPANTS to and from securities accounts; registers transfers (INFRASTRUCTURE) of rights to securities as a result of trades; acts TAXATION • Regulators: the State Service for the Financial as a paying agent; and keeps separate records • The tax rate on income from government or BASIC INFORMATION Market Regulation and Supervision, the of securities owned by its clients and clients’ municipal bonds is 10% (for residents) or 0% 5 employees (number of full time equivalents Government of the Kyrgyz Republic, www.fsa.kg customers. (for foreign investors). working for the CSD) • Self-regulatory organizations: None CORPORATE EVENTS • For non-residents, the income tax rate applicable Banking license to interest income is 20%, and the income tax rate • Association of Independent Registrars and • The central securities depository gives notice applicable to dividend income is 10%. NNA Depositories of annual or extraordinary general meetings of shareholders to issuers (whose shares are held • Interest and capital gain on securities listed, as LOU for LEI • Stock exchanges: Kyrgyz Stock Exchange, by the CSD acting as a nominee). at the sale date, on a stock exchange in the highest www.kse.kg BIS SETTLEMENT MODEL or next-to-the-highest category are exempt • The central securities depository sends written • Depositories: Central Depository of the Kyrgyz from the income tax. + Model 1 (OTC, On-exchange) notifications (in electronic format and by mail) Republic CJSC, www.cds.kg + Model 2 (On-exchange: corp. securities) of the time, place, and form of general meetings. • Clearing houses: Central Depository of the Kyrgyz • Independent registrars request nominees + Model 3 (On-exchange: corp. securities) Republic CJSC acts as a clearing house, to disclose ultimate owners for the purpose www.cds.kg SECURITIES ACCOUNTS of drawing up a full list of shareholders. • Registrars: 20 companies Total: 572 PROXY VOTING Legal entities: 551 MARKET SPECIFICS • A shareholder may attend general meetings Individuals: 21 • Time zone: of shareholders and has the number of votes equal to the number of shares held by the shareholder. SECURITIES TRANSACTIONS • GMT +6h A shareholder may also vote through a proxy acting • National currency: KEY MARKET FIGURES* under a power of attorney issued by • Kyrgyz som (KGS) the shareholder. • Market Capitalization, USD mln: 154.47 • Number system: • Average Daily Trading Volume, USD mln: 109.8 • ISIN; local registration number

Value of deliveries, USD mln SETTLEMENT CYCLES

Number of deliveries, pcs 8 431 • Shares • On-exchange: T+0, T+3 • Bonds 4 269 • On-exchange: T+0, T+3 2 949 MARKET CUT-OFF TIMES 0,023 0,025 0,022 On-exchange trades: 10.30 – 15.00

2012 2013 2014 INVESTOR DISCLOSURE REQUIREMENTS A shareholder holding at least 5% in a strategically • Listed Companies: 21 important company (open joint-stock company) is • Value of assets under custody held on behalf required to disclose such shareholding. of customers, USD bln: 0.015 • Number of securities transactions settled, in thousands: 8.4

* as of 31.12.2014

www.aecsd.org www.aecsd.org 24 RUSSIA | NATIONAL SETTLEMENT DEPOSITORY RUSSIA | NATIONAL SETTLEMENT DEPOSITORY 25

• Number of securities transactions settled, MARKET CUT-OFF TIMES CORPORATE ACTIONS in thousands: 2,512.1 On-exchange trades: • The majority of corporate actions entitlements are • Value of securities transactions settled, based on the settled position as of the record date. • 09.45 – 19.00 USD bln: 3,698.5 In some corporate actions there is no exact record OTC trades: date, but there is a special period for execution • Country’s Ratings: of shareholders rights (tender offer, conversion • FoP: 09.00 – 20.00 • Moody’s: Baa2 and etc.). • DVP: 09.00 – 20.00 BASIC INFORMATION • Fitch: BBB • There is no ex-date concept. • S&P: BBB 492 employees (number of full time equivalents INVESTOR DISCLOSURE REQUIREMENTS • There is no single source of corporate action working for the CSD) • Depository Rating: • Normal shares: over 25% information. Information on corporate events is available in mass media, at the web sites of the + Banking license • Thomas Murray: AA– • Banks: over 1% issuers, registrars, CSD and other sources such + NNA MAJOR MARKET PARTICIPANTS • Insurance companies: over 49% as databases of information agencies, etc. + LOU for LEI (INFRASTRUCTURE) • Strategic companies: over 5% • For corporate event that requires a record date the issuer acquires the register of shareholders BIS SETTLEMENT MODEL • Regulators: Central Bank of Russia, www.cbr.ru Most types of investments in Russia’s financial market for such a date via its registrar. The registrar + Model 1 (OTC, On-exchange) • Self-Regulated organizations: NAUFOR, NFA, NLU are freely available to foreign investors. then requests nominee holders to disclose final beneficial owners to determine the full list + Model 2 (On-exchange) • Stock Exchange: , The activity of foreign investors is regulated by the Federal law “On Foreign Investments of shareholders. + Model 3 (On-exchange) www.moex.ru in the Russian Federation”, which sets out the general PROXY VOTING SECURITIES ACCOUNTS • Settlement Depositories: National Settlement guarantees of the rights of foreign investors Depository (NSD), www.nsd.ru with regards to investments and receiving income. The shareholder can exercise their voting rights: Total: 897 by attending the AGM personally or by proxy (POA • Clearing House: National Clearing Center (NCC), Under this law, all types of investors, whenever is required) or by posting the voting bulletin (only Legal entities: 897 individuals or entities, both foreign and local, must www.nkcbank.com issuers which have more than 1000 shareholders secure the approval of the Federal Antimonopoly Individuals: No as of record date). • Registrars: 39 registrars Service (FAS) if they are going to acquire over 25% of the voting equity of a Russian company. As of Aug 2014 electronic proxy voting is allowed. SECURITIES TRANSACTIONS MARKET SPECIFICS Custodian of shareholder is entitiled to submit There are also several limitations with regard a voting document via Custodian chain to Issuer / Value of deliveries, USD mln • Time zone: to acquiring enough shares to have a vote, Registrar. And no PoA is required if there specific • GMT +3h when investing in banks, insurance companies Number of deliveries, pcs powers are provided by SLA between shareholder and strategic enterprises set out in the Russian laws • Local currencies: and custodian. 2 625 692 and acts issued by other government authorities. • Ruble (RUB) 2 512 069 It should be taken into consideration that if a foreign TAXATION • Number system: ISIN; CFI; local registration number 2 340 214 investor is operating on the Russian securities • Government bonds, sub-federal and municipal All Russian equities are issued in dematerialized market via an omnibus account holder (a nominee bonds are taxed at 15% for residents (legal holder), the investor and the issuer of securities are registered form and are held by independent licensed entities), and 0% for foreign investors and Russian responsible for monitoring thresholds for ownership 4 330 438 5 301 763 3 698 485 companies, registrars. Russian debt securities are held individuals. of securities in accordance with the applicable in global certificate form. 2012 2013 2014 legislation of the Russian Federation. Nominee • Withholding tax for foreign investors on corporate holders are responsible for disclosing the owners bonds interest income is 20% for foreign legal SETTLEMENT CYCLES entities and 30% for foreign individuals; on KEY MARKET FIGURES* of the securities at the issuer’s request, but they • Stocks are not responsible for reporting on the thresholds dividend income tax rate 15% for foreign investors. • Market Capitalization, USD bln: 422.5 • On-exchange: T+2 of their clients. • Capital gains tax for foreigners is 20% only for listed • Average Daily Trading Volume, USD bln: 0.73 • OTC: T+n For more details please see part 5 “Restrictions equities of Russian issuers over 50% of whose assets on foreign investment” of the Market Profile RUSSIA consist of immoveable property situated on the • Number of Listed Companies: 720 • Bonds which is published on the English version of NSD territory of the Russia. • Financial Instruments: Equities, Bonds, Promissory • On-exchange: T+0, T+1 web-site. In order to benefit from reduced tax rates as provided Notes, Units, Eurobonds, Depository Receipts, • OTC: T+n NOMINEE CONCEPT by the Double taxation treaty (DTT), foreign investors Warrants have to provide a tax certificate (certificate of Starting from July 1, 2012 eligible foreign institutions residence) confirming their tax residency to the • Value of assets under custody held on behalf are allowed to establish foreign nominee accounts, Russian tax agent for the current year. DTT agreement of customers, USD bln: 446.6 foreign trustee accounts and depositary program is signed with 86 countries. * as of 31.12.2014 accounts in accordance with applicable procedures.

www.aecsd.org www.aecsd.org 26 UKRAINE UKRAINE 27

certificates, Eurobonds, Foreign securities • Clearing House: Settlement Center, NOMINEE CONCEPT www.ausd.com.ua • Value of assets under custody held on behalf There is a two-level depositary system in Ukraine, of customers, USD bln: 70.2 • Registrars: N/A which means that CSD opens & maintains nominee securities accounts in the name of licensed Ukrainian • Number of securities transactions settled, MARKET SPECIFICS in thousands: 479.4 custodians (depository institutions). Custodians, • Time zone in their turn, open and maintain securities accounts • Value of securities transactions settled, in the name of beneficial owners. Custodians open BASIC INFORMATION • GMT +2h (in winter) USD bln: 26.9 securities accounts with CSD to jointly keep • GMT +3h (in summer) 128 employees (number of full time equivalents • Country’s Ratings: in custody custodians’ own and clients’ assets. working for the CSD) • Moody’s: Caa3 • Local currencies: CSD also opens nominee securities accounts in the Banking license • Fitch: CCC • Hryvnia (UAH) name of foreign (I)CSDs. The securities credited to the foreign depository’s ‘nominee account’ opened with + NNA • S&P: CCC– • Number system: CSD belong to clients of the nominee account holder; • ISIN; CFI LOU for LEI MAJOR MARKET PARTICIPANTS the nominee account holder is obliged to maintain BIS SETTLEMENT MODEL (INFRASTRUCTURE) All Ukrainian securities are issued in book-entry accounts on his own books in respect of the securities form. CSD services all eligible securities except credited to the nominee account. The nominee + Model 1 (OTC) • Regulators: for those serviced by the National Bank of Ukraine account holder keeps records of the securities Model 2 • National Securities and Stock Market (government and municipal bonds). according to legislation of the country, where Commission (NSSMC), www.nssmc.gov.ua it is doing business. + Model 3 (On-exchange) • National Bank of Ukraine – currency regulation, SETTLEMENT CYCLES CORPORATE ACTIONS SECURITIES ACCOUNTS www.bank.gov.ua • Stocks According to Ukrainian legal and regulatory acts, Total: 11,138 • Self-regulated organizations: • On-exchange: T+0, T+3, T+n (depends on terms an issuer is obliged to make information on its of a contract) Legal entities: 11,138 • Association of Ukrainian Stock Traders (AUST), upcoming corporate events publicly available www.aust.com.ua • OTC: T+n Individuals: No by publishing information in the specific sources • Professional Association of Registrars and • Bonds (NSSMC official publications, company’s web-site etc.) SECURITIES TRANSACTIONS Depositories (PARD), www.pard.ua within specifically set timeframe. • On-exchange: T+0, T+3, T+n (depends on terms • The Ukrainian Association of Investment Business of a contract) Processing of corporate actions (coupon, dividend Value of deliveries, USD mln (UAIB), www.uaib.com.ua • OTC: T+n payment, General Meeting etc.) is as follows: Number of deliveries, pcs • Stock Exchange: there are 10 stock exchanges • at least three days prior to GM/proceeds an issuer in Ukraine MARKET CUT-OFF TIMES 479 393 instructs CSD to disclose beneficial owners • Perspektyva Stock Exchange, www.fbp.com.ua On-exchange trades: on Record Date (RD); 310 000 • Ukrainian Exchange, www.ux.ua • 10.00 – 17.30 • CSD instructs custodians/foreign (I)CSDs to disclose • Ukrainian International Stock Exchange, beneficial owners on RD; OTC trades: 57 000 www.uise.com.ua • based on information received from custodians/ • Kyiv International Stock Exchange, • FoP: 09.00 – 18.00 28 462 1 111 421 26 934 foreign (I)CSDs CSD draws up a consolidated list www.kise.com.ua 2012 2013 2014 • DVP: 10.0 – 17.30 of beneficial owners (RD+2) and provides it • PFTS Stock Exchange, www.pfts.ua to the issuer. * • Pridneprovsk Stock Exchange, INVESTOR DISCLOSURE REQUIREMENTS KEY MARKET FIGURES • In case of proceeds issuer: www.pse.com.ua Investor disclosure is mandatory under applicable • Market Capitalization, USD bln: 29.0 (for listed • either remits funds directly to beneficial owners • East-European Stock Exchange, Ukrainian law. The share issuing company and/or companies only) on Payment Date (PD) (beneficial owners list www.eese.com.ua state authorities (the Regulator) are entitled to obtain provided by CSD contains investors’ bank • Average Daily Trading Volume, USD mln: 159.0 information on the identity of beneficial owners of • Ukrainian Stock Exchange, www.ukrse.com.ua account details) Ukrainian equities. Upon request CSD customers • Listed Companies: 378 • “Innex” Stock Exchange, www.innex-group.com holding Ukrainian equities provide information on • or remits funds to CSD cash account with the • Ukrainian Interbank Currency Exchange, • Financial Instruments: Equities, Bonds, Investment the beneficial ownership of such holdings. Settlement Center and instructs CSD to remit certificates, Certificates of FREO (FON), Mortgage- www.uice.com.ua funds to beneficial owners on PD (centralized The issuer is obliged to report on any acquisition that income payment via CSD). backed Bonds, Mortgage certificates, Option • Settlement Depositories: National Depository causes the holding of the company’s voting shares of Ukraine (Ukrainian CSD), www.csd.ua to reach, exceed or fall below 10%. * as of 31.12.2014

www.aecsd.org www.aecsd.org 28 UKRAINE UZBEKISTAN | STATE ENTERPRISE CENTRAL SECURITIES DEPOSITORY 29

PROXY VOTING • 15% for foreign companies (18% is applied MAJOR MARKET PARTICIPANTS to proceeds from an interest-free (discount) Shareholders may exercise their voting rights (INFRASTRUCTURE) bonds or treasury bonds); by attending the General Meeting in person • Regulators: Center for coordination and control • 20% for foreign individuals (5% is applied or by proxy. over securities market www.csm.gov.uz to dividends distributed by an issuer – income TAXATION taxpayer). • Stock Exchange: Republican Stock Exchange “Tashkent”, www.uzse.uz The Tax Code of Ukraine establishes the following • Coupon payments received by a foreign entity/ • Central Depository: State enterprise “Central principles with respect to taxation of foreign legal individual on domestic/municipal government BASIC INFORMATION entities/individuals: bonds and foreign government bonds, which Securities Depository” (UzCSD), www.deponet.uz have been sold to/placed among foreign entities/ 57 employees (number of full time equivalents • Income derived from sources within the territory • Central Clearing: Republican Stock Exchange individuals outside the territory of Ukraine, are not working for the CSD) “Tashkent”, LLC Clearing and Settlement house of Ukraine by foreign entities (which are not subject to a withholding tax. “Elsis-Kliring“ engaged in commercial activities on the territory Banking license of Ukraine through a permanent establishment) or NNA • Registrars: State enterprise “Central Securities foreign individuals are taxed at the time of income Depository” (UzCSD), www.deponet.uz LOU for LEI remittance to such foreign entities; taxes are withheld from the sums remitted. BIS SETTLEMENT MODEL MARKET SPECIFICS Unless an applicable bilateral double taxation + Model 1 (On-exchange) • Time zone: GMT +5h treaty provides relief with respect to withholding, • Local currencies: SUM (UZS) the tax is: + Model 2 (OTC) Model 3 • Number system: • Local registration number, ISIN, CFI. SECURITIES ACCOUNTS All Uzbekistan equities are issued in dematerialized Total: 56,474 registered form and safekept in UzCSD. Legal entities: 5,271 SETTLEMENT CYCLES Individuals: 51,203 • Stocks SECURITIES TRANSACTIONS • On-exchange: T+0, T+5, T+10; OTC: T+0 Value of deliveries, USD mln • Bonds Number of deliveries, pcs • On-exchange: T+5; OTC: T+0

2 309 MARKET CUT-OFF TIMES 2 210 1 826 On-exchange trades: • 10.30 – 15.30 OTC trades: 898 246 481 • FoP: 09.00 – 18.00; DVP: 17.00 – 17.30 2012 2013 2014 NOMINEE CONCEPT KEY MARKET FIGURES* Nominee accounts can be opened in the name • Market Capitalization, USD bln: 5.0 of depository licensed by Regulator. • Average Daily Trading Volume, USD mln: 2.0 CORPORATE ACTIONS • Number of Listed Companies: 134 • There is a single source of corporate action • Financial Instruments: Equities, Bonds information. Issuers may disclose information at newspaper “BIRJA” and in other media sources. • Value of assets under custody held on behalf of customers, USD bln: 5.4 • For corporate event that requires a record date the issuer acquires the register of shareholders for • Number of securities transactions settled, particular date via UzCSD. The UzCSD then requests in thousands: 2.2 depositories to disclose final beneficial owners list • Value of securities transactions settled, USD bln: 0.5 to determine the full list of shareholders.

* as of 31.12.2014

www.aecsd.org www.aecsd.org 30 THE ASSOCIATION OF EURASIAN CENTRAL SECURITIES DEPOSITORIES THE ASSOCIATION OF EURASIAN CENTRAL SECURITIES DEPOSITORIES

LIST OF MEMBER ORGANIZATIONS

National Depository Center Central Depository of Armenia Republican unitary entity Georgian Central Securities Central Depository Services National Securities Depository of the Azerbaijan Republic Open Joint-Stock Company “Republican Central Depository (India) Limited (CDSL) Limited (NSDL) Securities Depository” 19 Bul Bul Avenue, Baku, 5b, Mher Mkrtchyan Str, 0010, 74a Chavchavadze Ave., 17th floor, P J Towers, Dalal Trade World, A wing, 4th & 5th Az1000 Azerbaijan Republic Yerevan, Republic of Armenia 220004, Republic Belarus, Minsk, 0162 Tbilisi, Georgia Street, – 400001 Floors, Kamala Mills Compound, Melnikayte St 2, (4th floor) Lower Parel, Mumbai – 400013 www.mdm.az www.nasdaqomx.am www.gcsd.ge www.cdslindia.com www.centraldepo.by www.nsdl.co.in

Joint-stock company Closed Joint-Stock Company National Securities Depository National Settlement Depository Merkezi Kayit Kurulusu A.S. Public Joint-Stock Company “Central Securities Depository” “Central Depository” of Republic of Moldova (NSD) (MKK) “Settlement Center” Kyrgyz Republic 28, microdistrict Samal-1, Almaty, Stefan cel Mare 73, oficiu 352, 12, Spartakovskaya St., Moscow, Askerocağı Cad. Süzer Plz. No:15 7-G Tropinina Str., 04107 Kyiv, 050051, Republic of Kazakhstan 172 Moscovskaya St., Bishkek Chisinau, MD2001, 105066, Russia Kat:3, 34367 Elmadağ-Şişli Ukraine www.kacd.kz 720010, Kyrgyz Republic Republica Moldova www.nsd.ru İstanbul, Turkey www.ausd.com.ua www.cds.kg www.moldse.md www.mkk.com.tr

PJSC “National Depository State enterprise of Ukraine” (NDU) “Central Securities Depository“ (UzCSD) 3 Grinchenko St. Kiev 01001, Ukraine 10 Bukhoro St., Tashkent 100000, www.csd.ua Republic of Uzbekistan www.deponet.uz

www.aecsd.org www.aecsd.org The Association of Eurasian XIII International Central Securities Depositories AECSD Conference

Fall 2016 (date TBA), Georgia AECSD PROFILE Hosted by: Georgian Central Securities Depository

AECSD SECRETARIAT National Settlement Depository (NSD)

Postal address: 12, Spartakovskaya St. Moscow 105066, Russia Telephone: +7 495 232 0513 Fax: +7 495 956 0938 E-mail: [email protected] Web-site: www.aecsd.org

www.aecsd.org 2015