DECISION OF THE NATIONAL COMMISSION ON SECURITIES AND STOCK MARKET OF UKRAINE

of November 14, 2019 No. 690

About modification of some regulatory legal acts of the National commission on securities and the stock market concerning implementation and the termination of activities in the stock market

According to Item 13 of article 8 of the Law of Ukraine "About state regulation of the security market in Ukraine", parts seven of Article 5 and part two of article 20 of the Law of Ukraine "About depositary system of Ukraine", to the Law of Ukraine of May 15, 2018 "About introduction of amendments to some laws of Ukraine concerning assistance to attraction of foreign investments" the National commission on securities and the stock market SOLVED No. 2418-VIII:

1. Make changes to Regulations on the termination of implementation of professional activity by depository institution in the stock market - depository activity, approved by the decision of the National commission on securities and the stock market of April 08, 2014 No. 431, registered on April 28, 2014 for No. 459/25236, having been reworded as follows it which is applied the Ministry of Justice of Ukraine.

2. Make to the section IV of the Provisions on clearing activities approved by the decision of the National commission on securities and the stock market of March 26, 2013 No. 429, registered in the Ministry of Justice of Ukraine on April 5, 2013 for No. 562/23094, the following changes:

the paragraph one of Item 8 to replace with three new paragraphs of such content:

"8. Person who performs clearing provides unblocking of obligations and/or the rights on delivery and/or receipts of securities (irrespective of the storage location of securities) and/or the means blocked for ensuring obligation fulfillment according to the bargains concluded on the stock exchange concerning securities with respect for the principle "delivery of securities against payment" on the corresponding clearing accounts and clearing sub-accounts and stops implementation of any transactions with these clearing accounts and clearing sub-accounts:

in day of obtaining from the Central depositary, but not earlier than completion of all agreement settlements concerning securities on which obligations were allowed to clearing, information on suspension action/cancellation of the license for implementation of professional activity in the stock market - depository activity of depository institution (except case of cancellation of the license according to the corresponding statement of the licensee) or information on opening in depository institution of the procedure concerning the termination of implementation of professional activity in the stock market - depository activity of depository institution in connection with its liquidation as legal entity under the resolution of economic court on recognition of the debtor by the bankrupt and opening of the liquidating procedure in the cases provided by the Code of Ukraine on insolvency proceedings;

before completion of the operational day preceding date of the termination of implementation of professional activity in the stock market - depository activity of depository institution, information on which is obtained from the Central depositary, but not earlier than completion of all agreement settlements concerning securities on which obligations were allowed to clearing, in case of adoption by authorized body of depository institution of the decision on the termination of implementation of professional activity in the stock market - depository activity of depository institution or the termination as legal entity, including owing to the termination of depository institution as legal entity by accession it to other legal entity.".

With respect thereto to consider paragraph two the paragraph the fourth.

3. Approve Changes in the Regulations on implementation of depository activity approved by the decision of the National commission on securities and the stock market of April 23, 2013 No. 735, registered in the Ministry of Justice of Ukraine on June 27, 2013 for No. 1084/23616, which are applied.

4. To department of methodology of regulation of professional participants of the security market () provide Kurochkin I.:

submission of this decision on state registration in the Ministry of Justice of Ukraine;

promulgation of this decision on the official website of the National commission on securities and the stock market.

5. This decision becomes effective from the date of its official publication.

6. To Central Securities Depository, depository institutions to bring the internal documents into accord with this decision no later than three months from the date of the introduction it in force.

7. Control over the implementation of this decision to assign to the member of the National commission on securities and the stock market Tarabakin D.

Approved by the Decision of the National commission on securities and the stock market of Ukraine of April 8, 2014 No. 431

(in edition of the Decision of the National commission on securities and the stock market of Ukraine of November 14, 2019 No. 690)

Regulations on the termination of implementation of professional activity by depository institution in the stock market - depository activity

I. General provisions

1. This Provision establishes requirements to actions of depository institutions, and also actions of legal entities which cancelled licenses for implementation of depository activity, stop implementation of professional activity by them in the stock market - depository activity (further - Depository institution), to the actions of other professional participants of the stock market connected with such termination and also procedure of the state control of actions of such persons during the termination of implementation of professional activity by Depository institution in the stock market - depository activity (further - Activities of depository institution).

2. In this Provision terms are used in such values:

databases - the arranged set of logically interconnected data of system of depositary accounting consisting of stored information also contains data on accounts in securities, their condition and information on the performed operations for each operational day;

date of opening of the liquidating procedure - acceptance date economic court of the resolution on recognition of the debtor by the bankrupt and opening of the liquidating procedure;

start date of the termination of activities - date since which the Depository institution begins the actions determined by this Provision connected with completion of depository activity of organization;

date of the termination of activities - the date established by this Provision since which the Depository institution stops implementation of depository operations on accounts in securities of depositors, nominee holders and owners of securities which accounts are serviced by Depository institution based on the contract with the issuer on opening/servicing of accounts in securities of owners except the transactions connected with preparation of information and the documents provided by this Provision and also stops payments of the means received following the results of repayment of securities, and/or payment of the income (dividends) for securities and since which the Central Securities Depository and the National Bank of Ukraine stop carrying out depository operations on the account in securities of Depository institution on its orders, except transfer operation of securities from the account of Depository institution into the account of depositary organization legal successor;

the depositary organization legal successor - the legal entity having the license for implementation of professional activity in the stock market - depository activity of depository institution (further - the License) which in the cases established by this Provision, the agreement on further accounting and servicing of the rights to securities of depositors, the owners who do not have the status of depositors, nominee holders in accordance with the established procedure did not close the accounts in securities in Depository institution (except case of adoption of the decision by authorized body of Depository institution about the terminations as legal entity as a result of accession it to other legal entity who has the License) (further - the Agreement) provides further accounting and servicing of securities, rights to securities of depositors, nominee holders which in accordance with the established procedure did not close the accounts in securities in Depository institution, and owners of securities, which accounts were serviced by Depository institution based on the contract with the issuer on opening/servicing of accounts in securities of owners and were not transferred by the issuer to new depository institution according to the procedure, established by the legislation, and also provides further payment of the means received from Depository institution, which arrived to them by results of repayment of securities and/or payment of the income (dividends) for securities and were not paid. In case of availability among depositors, nominee holders who in accordance with the established procedure did not close the accounts in securities in Depository institution of institutes of joint investment (further - ISI) on which accounts in securities the securities which are part of assets of ISI and with which service agreements are signed by the keeper of assets of ISI depositary organization legal successor are considered shall have respectively license for activities on storage of assets of ISI. In case of availability among depositors which in accordance with the established procedure did not close the accounts in securities in Depository institution of the pension funds (further - PF) on which accounts in securities the securities which are part of assets of PF and with which service agreements are signed by the keeper of assets of PF depositary organization legal successor are considered shall have respectively license for activities on storage of assets of PF;

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