family psychology 

Storage of securities. Storage of securities in a bank

Securities are popular with many bank customers. Based on this, banking organizations began to offer their services for the storage, accounting, transfer and withdrawal of these documents from the accounts. Each security - a share, a bond, a bill, etc. - has a certain amount of money under it, which must be saved so that it does not fall into the wrong hands. You can, of course, use a home safe, but the risk is too great. It can also be attributed to a specialized company that deals with such matters, but who will guarantee that the company will not “run away” with all the values ​​​​accepted for storage. Therefore, the bank remains the most optimal and reliable option for storing securities. It has several degrees of protection, and all conditions and actions between the client and the bank are drawn up in writing. This guarantees increased security of securities storage.

Why does a bank hold securities?

The activity of storing securities is called depository. To engage in it, you need to obtain the appropriate permit and license. Most banks are qualified to engage in this type of business.

The question arises, why should a bank store securities? It's all about profit. For its services as a depositary, the bank charges a good commission, which increases its income in the aggregate.

Banks can store securities (c/b):

  • In cash, as a value.
  • In non-cash form, if the paper does not have a physical form, but exists non-cash.

Storage of securities in physical form is carried out when they are placed in safe boxes or a special bank vault that meets the standard requirements for storage and the procedure for organizing work with them. The client can determine the retention periods independently.

CBs are accepted for storage at the conclusion of a special agreement, which specifies all the conditions for the provision of such a service, and an act of acceptance of the transfer, in which the data of the values ​​​​given are registered and which performs the function of a registered safe document. Usually, one type of securities is accepted under one agreement: shares, bills, bonds, certificates, etc. The number of accounts for storing securities is not limited. During the acceptance process, the documents are checked for authenticity.

The customer pays a fee for this service. Its size may vary depending on the bank, the terms of the contract, individual agreements. The amount of the commission can be fixed or depend on the denomination of the stored certificates.

It is worth noting that the storage and maintenance of securities in cash implies higher costs than non-cash storage on accounts, therefore non-cash turnover is several times higher than the turnover in physical form.

Storage of securities in accounts.

Securities kept by the bank in a non-cash form are reflected in special accounts, which are called "depot". The management of securities on this account does not differ from the management of funds on current accounts. Some banks provide customers with a remote service system with a fairly convenient interface so that they can conduct transactions with their securities.

Securities of the same issue and the same depositary operations are accounted for on one depo account.

The coding of the depo account is determined by the bank independently.

Depo account encoding example.

The account structure has 15 characters grouped into sections: AABBBBBBBBVYYYYY, where

AA - type of depo account. Its possible values ​​are:

40 is the owner's account.

50 is the broker's account.

90 - transit account, etc.

BBBBBBBB is the code of the bank's client.

B is the check digit.

YYYYY - serial number of the account of this type for a specific client.

Consider the structure of the Sberbank depo account.

It adopted a 12-digit encoding: 0002 AAAAAAA 01, where

002 - depo account,

AAAAAAA - investor section and contract code:

100000 - main partition,

210000 - section of securities out of circulation,

220000 - c / b at the auction,

280000 - c / b out of circulation, etc.

01 - share code, i.e. whose shares are held in the account

How to transfer or withdraw securities from the account?

The transfer of certificates may be related to the payment of a monetary transaction or for independent reasons. To transfer securities between accounts, you need to fill out an instruction for the transfer of securities. It indicates the type of security, quantity, details of the recipient and other mandatory data. The order is filled in the branch or via the Internet bank. The bank, having received such an order, writes off the securities from the account of their owner and credits them to the specified details. This operation is similar to a money transfer.

If the client transfers securities stored in cash in the bank, then in this case only the owner changes, and the certificates themselves remain in the vault.

To withdraw securities from the account, the client must draw up a withdrawal order. The certificate of acceptance and transfer serves as evidence of the issuance of securities to the client from the account. A report on the execution of the client's order to withdraw securities from the depo account is an extract. Withdrawn non-cash securities are transferred to the client's account in another depository. It is impossible to receive non-cash securities in cash.

Suppose you have (or will have) securities in a certain amount. However, you are not a competent specialist in the field of managing them.

And you will agree that it is tempting to place them in a depository, which will save both papers from damage and theft, and protect the interests of the depositor, that is, yours.

Custody activity is a complex of services for ensuring the safety of securities, maintaining their accounting and performing settlements on transactions with these securities.

Most often, banking institutions take on the role of depository.

In itself, storing papers in physical form is not a professional service; anyone can do it just in a safe.

So, with the development of computerization and the growth in the issuance of securities in non-documentary form, the role of the depository is not in storage as such, but in the operational accounting of the transfer of rights to securities, the calculation and payment of income and taxes. More about this in the article.

Depository activity is the storage and accounting of securities, settlements on them

First you need to understand what, in fact, is called a depository. Any securities market has its participants. It is customary to call a depositary a market participant who operates on a professional basis. It's all about legal entities. This participant conducts depositary activities.


The essence of depositary activity is that the majority of participants in this market keep their assets with the help of a depository. In addition, with the help of a depository, they can buy and sell, transfer and assign rights to all types of securities that are stored in the depository.

Main functions

I would like to clarify that the direct owner remains the right holder of the securities deposited. By accepting assets for safekeeping, the depository does not acquire any rights to them. He simply performs the functions of trust management of the assets entrusted to him.

Even in the event of financial insolvency or bankruptcy of a credit institution, the rights to the retained securities cannot in any way be transferred to possible creditors or third parties.

Only professional market participants who have a license to carry out such functions have the right to engage in depository activities. The bank's depository activities are somewhat broader and more multifaceted than it might seem at first glance.

The activities of a bank depository include the following range of services:

  1. The most common type of service is ensuring the safety of entrusted documents in kind, issuing certificates and maintaining a register of securities holders in electronic form.
  2. The bank does not just accept deposit. The bank's activity provides for the regular accrual and payment of dividends, which are due to the owners at the end of each reporting period. The frequency of payments is specified in the deposit agreement.
  3. In addition, it is possible to transfer the relevant taxes that arise in the course of assistance to the bank and the client (for example, income tax).
  4. The Bank carries out settlements on transactions carried out on the stock exchange.
  5. In addition, the duties of the depository include lending through securities.

It should be noted that financial and credit institutions have the right to engage in activities related to the performance of the functions of a depository:

  • Activities in the field of asset management.
    This type of activity is possible only upon conclusion of a trust management agreement. Such management implies conducting and securing transactions, both legal and actual, with property entrusted to the bank. Naturally, the actions of the manager should not be associated with possible financial losses.
  • Applicable to the function of trust management of the bank's depository activities is not only the safety of assets, but also the observance of the interests of the trusting person.
    The order does not mean the transfer of ownership to the bank. In fact, by assuming the duties of a trustee, the bank acquires obligations to the client.
  • Dealer activity means that the bank assumes the obligation to sell and buy entrusted securities.
  • Brokerage is self-explanatory.
    It includes all purchase and sale transactions. It differs from the dealership in that it does not require the fulfillment of special obligations, which are in public announcements of future transactions.
  • The depositary activity of the bank has something in common with clearing.
    Clearing is an activity designed to determine the mutual obligations of the parties. Roughly speaking, in this case, the bank acts as an arbitrator. For example, there are two parties that have entered into a sale and purchase agreement, and in order to maintain the purity of the transaction and guarantee the fulfillment of obligations, a bank is involved as a kind of intermediary.

How is it carried out

Under the depository activity is understood not only the implementation of certain types of financial activities permitted by licenses issued by the Central Bank of Russia. The list of activities is quite simple. But the algorithm of the depository's work remains unclear for many.

As already mentioned, the main task of the depository is to ensure the safety of securities. But why is all this necessary?

  1. First of all, for safety.
  2. Secondly, to ensure convenience in transactions.

Agree, it is much more convenient to place valuable assets in a depository for safety and issue a power of attorney to the organization to manage them, rather than making transactions on your own, without being a competent participant in the securities market.

In addition, the depository reliably protects entrusted documents from possible theft, damage or destruction.

The work process of the depositary includes a number of actions:

  • The first step towards cooperation with the depository is the conclusion of an agreement on maintaining a depo account.

The terms of the agreement provide for both storage and issuance of a certificate and servicing of securities accepted by the bank. Simply put, the certificate issued to the owner serves as confirmation that the asset is currently in the depositary and the owner has the right to receive it at any time.

The depo agreement may also include a clause on the transfer of rights to a third party (naturally, at the order of the copyright holder). The transfer of rights is accompanied by a process of re-registration, which is also carried out by the depositary.

  • The algorithm for re-registration of rights resembles the process of a money transfer.

The owner (client) gives the bank appropriate orders to transfer the right. Since at this moment the securities are reflected on the balance sheet of the bank, they are simply debited from the debit account of the previous owner and credited to the new owner on the credit account.

There is nothing complicated in this wiring. In fact, they still remain in the depository, just the appropriate entries are made in the register of copyright holders about the changes made.

Clients are given credit and debit orders, which are confirmation of the transaction (debiting and crediting from one account to another).

  • In addition, the depositary activity of the bank provides for another procedure for transferring rights to retained assets, that is, through the actual transfer of assets.

To do this, it is necessary to terminate the agreement with the previous owner, close the current depository account, hand over the papers to the owner. After that, the new owner concludes a storage agreement with the bank with automatic opening of a depositary account and deposits his acquisition for storage.

In fact, during this operation, the names of the owners change, the balance sheet of the bank actually remains unchanged.

  • Settlements between the parties to the transaction.

Are carried out as follows. It is clear that a share cannot be sold at par. For example, when opening a depo account, the contract specifies both the nominal value of the asset (for example, 1 ruble) and its actual (market) price.

The nominal value is reflected in the off-balance sheet accounts of the bank (where the material assets held in the depository are reflected), the actual value is reflected in the balance sheet accounts.

To conduct a purchase and sale transaction, the seller and the buyer open settlement accounts. The buyer deposits an amount corresponding to the market value of the acquired assets to his account, and the bank transfers funds to the seller's settlement account.

At the same time, new data is entered into the register of securities holders. The seller hands over his certificate, and the buyer receives a package of documents confirming the payment and the transaction, including a certificate in his name.

  • Also, the depository has the right to perform the necessary actions both in cash and non-cash storage format.

With cash storage, everything is clear. A client came, say, with a block of shares. He concluded a deposit agreement, transferred his material assets in kind to a bank employee for storage, received a certificate, and the depository is now obliged to store his shares.

In addition, the bank's depositary activities provide for a non-cash storage option. Formally, a depository account is opened with a bank, in fact, shares are deposited with another financial and credit institution with which the bank has an agreement.

Source: "prostoinvesticii.com"

The concept of depository activity

Custody activity is the provision of services for the storage of securities certificates or accounting for the rights to use these securities. Keeping securities in documentary form, as an independent activity, is not professional in the securities market, i.e. any other market participant can carry out this activity. You can store certificates and various valuables in safes, commercial banks, law offices, etc.

In today's environment, when most of the assets are issued in non-documentary form, depositories play an even more significant role in the introduction of accounting for these securities.

The depositary can be described as a participant in the secondary market, in contrast to the same registrars that are participants in the primary market.

The bottom line is that the registrar only monitors the process of relations between the issuer and the investor, and this applies more to the primary market. The depository, on the contrary, fixes the relationship between investors. And the whole task is to promptly transfer the rights of a security from one entity to another.

Basics of activity

The objects of depositary activity are securities that were admitted to circulation on the stock market. The subjects of depository activity are, first of all, the central depository and depositors.

Transfer of securities to the depository is carried out:

  1. When transferring a security to a depository for safekeeping.
    In this case, the non-documentary method of granting rights to a security replaces the documentary method.
  2. At the moment when the depository becomes a nominal holder of securities in the registry system.
    In this case, there is a simple transfer of accounting for the relevant securities from the registrar.

The depository renders its services on the basis of the depositary agreement, which they conclude with their depositors (persons using the services of the depositary).

According to the agreement:

  • the depository does not have the right to use and dispose of securities, only on behalf of the client
  • the securities of their clients cannot be foreclosed
  • the depositary is solely responsible for storing the certificates

The agreement or depository account shall indicate:

  1. subject of the contract (storage or accounting)
  2. direct conditions for the implementation of activities
  3. period of the contract
  4. information transfer procedure
  5. payment procedure for the services provided
  6. procedure for providing information

Depending on the objectives of the activity, the following types of depositories can be distinguished:

  • Settlement - this type of depository serves only professional participants in the securities market
  • Client - a depository capable of providing and providing a wide range of services to asset owners.
    The activities of client depositories may be directed to a specific security.

The functions of this type of activity are distinguished:

  1. participation in transactions for the supply and acceptance of securities;
  2. storage and accounting in two main forms (open storage, closed storage),
  3. payment of income
  4. managing the tax payments of their clients.

Development trends

World practice shows that over time the structure of the market changes in such a way that the boundaries between depositories and registrars are almost completely erased. The reasons are as follows: an increase in the issuance of securities in non-documentary form and an increasingly computerized process in the markets.

Modern technologies allow you to simultaneously keep records of securities, both issuers and investors. Depositories of this kind already exist in many European countries, and in the US they are already replacing registrar institutions.

Source: "investr-pro.ru"

Implementation of depository activities

Custody activity - provision of services for the storage of securities certificates and / or accounting and transfer of rights to securities, i.e. depositories perform in relation to securities functions similar to banking in relation to cash. Storage and accounting of rights to securities involves the provision of services such as collection and verification of the authenticity of these securities.

The equity capital of the depository must be at least 75,000 minimum wages. The license for depositary activities is issued by the Federal Securities Commission of the Russian Federation for a period of three years. A depositary can only be a legal entity that has a license as a professional participant in the securities market to carry out depository activities and is a member of a self-regulatory organization of professional participants in the securities market.

In order to record and certify rights to securities, a depositary account is opened for a client of the depository, i.e. a system for recording all information on the client's securities accepted for safekeeping by the depository. The client's right to securities is now certified not on the basis of a certificate, but by means of an entry on a depo account.

When securities are transferred from the register maintenance system by a shareholder to a depository that is a nominal holder of securities, the certification of rights by means of an entry on a personal account in the shareholders' register system is replaced by the certification of rights by an entry on a depo account opened with the depository.

A person who uses the services of a depository for recording rights to securities (and in whose name a depo account is opened) is called a depositor.

The depository's depositors may be legal entities and individuals who are:

  • securities holders,
  • pledge holders of securities,
  • trustees, as well as other depositories.

If the depositary's client is another depository, then the depository-depositor performs the functions of a nominal holder of the securities of its clients. At the same time, the depository-depositor is liable to the client for the actions of the main depository as for his own, except in cases where the agreement with another depository is concluded on the basis of a direct written instruction from the client.

The depositor may transfer the authority to dispose of securities and exercise rights under securities to another person - the account custodian.

An agreement must be concluded between the account custodian and the depository establishing their mutual rights and obligations and regulating the procedure for their interaction.

Custody activities can be combined with activities as a trade organizer and clearing, as well as with the activities of a broker, dealer and trustee.

Custody activities, subject to any combination, must be carried out by a separate subdivision of a legal entity for which this activity is exclusive. In addition, the specified legal entity must comply with procedures that prevent the use of information obtained in connection with the implementation of depository activities for purposes unrelated to it.

In the case of combining depository activities in the securities market, the depository must notify its clients of such a combination before concluding a depository agreement. The object of depositary activity is equity and non-equity securities issued by residents of the Russian Federation, in compliance with the form and procedure established by law.

Custody activities are carried out in accordance with the depository agreement (depo account agreement) concluded with the client. The deposit agreement is concluded in writing and contains the conditions for the implementation of depository activities. All changes to these (opium) customers are notified no later than 10 days before the date of their entry into force.

The depositor also fills out a client questionnaire (with information about himself) and a depo account questionnaire, where all the parameters of this account, as well as its trustees, are indicated. The subject of the depository agreement is the provision by the depository to the client of services for accounting and certification of rights to securities.

In the event that securities are issued in documentary form, the depository provides additional services for the storage of securities certificates. When concluding a depository agreement, the client is not required to immediately deposit securities.

Terms

The deposit agreement is concluded in a simple written form and must contain the following essential conditions:

  1. subject of the contract;
  2. the procedure for the client to send instructions for the disposal of deposited securities;
  3. the procedure for providing depositary services;
  4. the obligations of the depository to fulfill the client's instructions, the deadlines for their implementation, the procedure and form of the depository's reporting to the client;
  5. the term of the contract, the grounds and procedure for its change, termination and termination;
  6. the amount and procedure for payment for the services of the depositary and the conditions for the implementation of depository activities.

Conditions for the implementation of depository activities are developed and approved by the depository.

They must contain:

  • a list of operations performed, the grounds for their implementation. the procedure and terms for performing operations and the procedure for reporting on them;
  • samples of documents that make up the external document flow;
  • tariffs for depository services.

The conditions for the implementation of depository activities should be open and provided at the request of any interested parties.

A depository operation is a set of actions performed by a depository with accounting registers, as well as securities certificates and other materials of depository accounting stored in the depository.

The basis for the execution of a depositary operation is an instruction - a document in paper form, signed by the initiator of the operation and transferred to the depository.

There are three main classes of depository operations:

  1. inventory operations that change the balances of securities on personal accounts with a depository (for example, the transfer of securities between accounts following the results of a purchase and sale transaction);
  2. administrative operations leading to changes in the questionnaires of custody accounts, as well as the contents of other accounting registers of depositories (for example, changes in the details of a legal entity in the questionnaires of depositors);
  3. information operations related to the preparation of reports on the status of depo accounts, personal accounts and other accounting registers of the depository.

Depending on the initiator of the transaction, the following types of instructions can be distinguished:

  • client - the initiator is the depositor or account custodian;
  • official - the initiator is the officials of the depository;
  • official - the initiators are authorized state bodies (for example, the court);
  • global - the initiator, as a rule, is the issuer or the registrar on behalf of the issuer (for example, if a share split or consolidation is performed).

The rights to securities, which are recorded in the depositary, are considered transferred from the moment the depositary makes the corresponding entry in the client's depo account.

The depositary operation ends with the transfer of the report to the initiator of the operation. The report on the execution by the depository of the transaction on the depo account is the basis for making transactions in the accounting systems of the recipient of the report.

Securities held by a depository and owned by its customers are accounted outside of the main balance sheet. Depositary accounting of securities is carried out in pieces.

Securities in the depository are accounted for:

  1. once on the customer's depo account;
  2. the second time - on the account of the place of storage (principle of double entry).

In this case, accounting of clients' securities can be carried out in the following ways:

  • open method of accounting (securities are accounted for by their quantity without specifying individual characteristics, i.e. numbers, series, category);
  • closed accounting method (accounting is carried out for each specific paper that has individual characteristics, i.e. number, series, category);
  • marked accounting method (securities are accounted for by quantity and by groups, which are determined by the terms of issue, accounting features, etc., for example, pledged securities - separately; intended for sale - separately, etc.).

There are also safe and linked storage methods:

  1. With a safe storage method, the depository does not maintain contact with issuers and is only a repository, i.e. safe, for securities.
  2. With a linked method of storage, the depository, in addition to its main functions (storage and accounting), provides the issuer with information and related services:
    • informs about holding meetings of shareholders, payment of income on securities,
    • acts as a paying agent, transfer agent, etc.

Depository records include:

  • instructions serving as the basis for the execution of custody operations;
  • accounting registers;
  • documents containing information on the results of the execution of instructions.

The professional functions of the depository include:

  1. ensuring, on behalf of the client, the transfer of securities to the punished depo accounts both in this and any other depository or to a personal account in the register of securities holders;
  2. ensuring the acceptance of securities transferred to customer accounts from other depositories or from the registrar.
    When accepting securities certificates for safekeeping, the depository must ensure:
    • verification of the authenticity of certificates accepted for storage,
    • as well as ensuring that deposited certificates are not declared invalid, stolen, wanted or included in stop lists by issuers or government agencies;
  3. ensuring segregated storage of clients' securities. Being a nominal holder of clients' securities in the register of holders of registered securities, the depository ensures the separation of accounts by opening a separate depo account for each client;
  4. ensuring the transfer of information and documents from the holders of the register to the holders of securities and from the holders of registered securities to the holders of registers.

The depositary is obliged to immediately, at the first request of the client, transfer securities to him by re-registration of registered securities in the name of the owner in the register of shareholders or depositary indicated by the client, or by returning certificates of documentary securities.

The depositary is not entitled to:

  • condition the conclusion of a depository agreement with a depositor by the client's refusal from any of his rights secured by securities;
  • dispose of securities without a written order from the depositor or account custodian;
  • determine, control or restrict the client's rights to dispose of securities at its own discretion;
  • meet the client's securities for its own obligations.

The depository bears civil liability for the safety of securities certificates deposited with it.

The depositary is obliged to reimburse the client for losses caused to him in the event of non-performance or improper performance of his professional duties, unless he proves that the losses arose as a result of force majeure, intent or gross negligence of the client.

Any agreement between the depositary and the depositor limiting the liability of the depositary shall be null and void.

Securities of depositors may not be levied on the obligations of the depository. In case of bankruptcy of the depository, the clients' securities are not included in the bankruptcy estate.

At present, the work of depositories on the Russian stock market is based on various technologies for carrying out depositary operations in compliance with the following basic principles:

  1. high reliability and quality of services provided;
  2. availability of a modern technical base using high technologies;
  3. availability of a developed risk management system;
  4. creation and development of a network of regional representative offices; assistance in the entry of regional depositories into the all-Russian stock market;
  5. availability of trained highly qualified personnel;
  6. openness to new members;
  7. the flexibility of the technologies used, allowing to interact with external structures.

Now there is a pronounced trend of concentration of the majority of actively traded instruments of the securities market on the accounts of the largest depositories:

  • Created with the participation of MICEX and the Bank of Russia, the National Depository Center is the MICEX settlement depository.
  • The depository clearing company services operations in the Russian trading system.
  • The Depository and Settlement Union services operations on the Moscow Stock Exchange.
  • A unique depository system was created by Gazprombank.

Source: "monographies.ru"

Depositary services

Custody activity is the provision of services for the storage of securities certificates and / or accounting and transfer of rights to securities. Storage of certificates of securities, or securities in documentary form, as an independent activity, is not a professional activity in the securities market and can be carried out by other participants.

The depositary is more of a participant in the secondary securities market, in contrast to the registrar, which is primarily a participant in the primary market. The registrar is responsible for fixing the relationship between the issuer and investors, maintaining and updating it, which is included in the circle of relations in the primary securities market.

The depository, on the contrary, fixes the relationship between investors when changing ownership of securities, which takes place in the secondary market. Its task is to provide a fast and cheap way to transfer the rights to a security from one market participant to another.

A user of depository services is called a depositor, and an account opened for him with a depository is called a depo account.

Changing the method of certification of rights to securities in the depository. The transfer of securities accounting to the depository is carried out:

  1. when the security certificate is deposited with the depositary.
    In this case, the documentary method of certifying rights to a security is replaced by a non-documentary method, i.e., transactions with these securities are subsequently recorded in the form of entries on depo accounts without issuing new certificates.

    There are different options for this situation, depending on the conditions for issuing a documentary security:

    • whether it involves the issuance of certificates to private holders of securities
    • or there is only a certificate for the issue of this security as a whole.
  2. when the depository becomes a nominal holder of securities in the registry system of their owners. In this case, there is a simple transfer of accounting for the relevant securities from the registrar (ie, from the personal accounts of their owners) to the depository (ie, to the depo accounts of the same owners).

Similarly, a depository may be a depositor of another depository or have other depositories as its depositors.

The depositary provides its services on the basis of a depository agreement concluded with its depositors. Under this agreement:

  • the depository may not dispose of the securities of depositors, except for the execution of their instructions regarding these securities;
  • securities of depositors may not be levied for the obligations of the depository;
  • The depository is responsible for keeping the certificates of securities transferred to it.

Source: "k2x2.info"

Rights and obligations of the depositary

Custody activity is the provision of services for the storage of securities certificates and / or accounting and transfer of rights to securities issued in documentary and non-documentary forms. Depository activities can only be carried out by legal entities on the basis of a license and being members of a self-regulatory organization of professional participants in the securities market.

A professional participant in the securities market engaged in depository activities in the securities market is called a depository. The depositary is obliged to approve the conditions for carrying out depositary activities by him, which are an integral part of the concluded depository agreement.

The functions of a depository can be performed by commercial banks and specialized depositories, for which depository activities are exclusive. The regulation of the activities of depositories, along with the Law "On the Securities Market", is carried out on the basis of the "Temporary Regulations on Activities in the Securities Market of the Russian Federation and the Procedure for Its Licensing".

A special self-regulatory organization, the Professional Association of Registrars, Transfer Agents and Depositories (PARTAD), certifies software for depositories.

A person who uses the services of a depository for safekeeping of securities and (or) accounting for and transfer of rights to securities is referred to as a depositor.

An agreement between a depository and a depositor that regulates their relations in the process of depository activities is called a depository agreement (depo account agreement), which must be concluded in writing.

The contract must set out:

  1. the subject matter of the contract
  2. contract time,
  3. the procedure for the depositor to transfer to the depository information on the disposal of the depositor's securities deposited with the depository,
  4. the amount and procedure for paying for the services of the depositary,
  5. the form and frequency of reporting by the depository to the depositor,
  6. responsibilities of the depository.

The depositary opens a depo account for each depositor, where the depositor's securities are recorded and their movement is traced.

The conclusion of a depositary agreement does not entail the transfer to the depository of the ownership of the depositor's securities.

The depository shall not have the right to dispose of the depositor's securities, to manage them or to carry out any actions with securities on behalf of the depositor, except for those carried out on the instructions of the depositor in cases stipulated by the depositary agreement.

Securities of depositors may not be levied on the obligations of the depository.

The depository bears civil liability for the safety of securities certificates deposited with it, for non-fulfillment or improper fulfillment of its obligations to record rights to securities, including for the completeness and correctness of records on depo accounts.

The depository, in accordance with the depositary agreement, has the right to receive income from securities held for the purpose of transferring to the depositor's account to its account.

The responsibilities of the depositary include:

  • storage of securities certificates, if the securities are issued in documentary form. Storage of securities in a depository can be carried out in two ways - in a collective and separate form;
  • registration of facts of encumbrance of the depositor's securities with obligations (collateral, resource provision, etc.);
  • maintenance of a separate deposit account of a depositor, indicating the date and reason for each transaction on the account;
  • transfer to the depositor of all information about securities received by the depository from the issuer or the holder of the register of securities owners;
  • verification of securities certificates for authenticity;
  • collection and transportation of securities;
  • acting as an intermediary between the issuer and the investor.

The depositary has the right to register in the system of maintaining the register of securities owners or with another depository as a nominal holder in accordance with the depository agreement.

It also has the right, on the basis of an agreement with other depositories, to involve them in the performance of its obligations to store securities certificates and (or) record the rights to securities of depositors (i.e., become a depositor of another depository or accept another depository as a depositor), if this is not expressly prohibited by the deposit agreement.

If the depositor of one depository is another depository, then the depository agreement between them must provide for the procedure for obtaining, in the cases provided for by the legislation of the Russian Federation, information about the owners of securities recorded in the depository-depositor, as well as in its depositories-depositors.

Source: "fxbum.ru"

Depository activities of banks

Custody activity is the provision of services for the storage of securities, accounting for the ownership of rights with securities and ensuring settlements for transactions with securities held in a depository. A bank depository is a structural subdivision within a bank that is engaged in depository activities.

Depository activities are carried out by the National Bank and commercial banks.

The depository provides services to issuers on the basis of a depository service agreement, under which the depository undertakes to provide services for the registration of rights to securities, their storage, settlements on securities, and the formation of a register of holders of the issuer's securities for a fee for a certain date.

The Central Bank Depository performs the following functions:

  1. acceptance for storage of issues of securities that have passed state registration and assignment of an identification code to each issue;
  2. storage of global certificates, decisions on the issue of securities;
  3. exercising control over the total number of securities of each issue stored in the central depository;
  4. maintenance of correspondent depo accounts of depositories;
  5. maintenance of unified directories and catalogs of the depository system;
  6. regulation of the functioning of the depository system;
  7. ensuring settlements on transactions with securities between depositors of different depositories by transferring securities to correspondent depo accounts of depositories;
  8. ensuring interaction between depositories;
  9. ensuring the safety and reliability of the functioning of the depository system;
  10. exercising control over the activities of depositories;
  11. ensuring accounting of securities exported outside the country;
  12. development of a methodological base for depository activities;
  13. provision of consulting and methodological assistance on the organization of depository activities.

The depository of commercial banks is obliged:

  • keep records of ownership of securities;
  • carry out storage of securities;
  • inform the depositor about the current state of his/her depo accounts; conduct accounting and settlements on securities;
  • take other actions on behalf of the depositor.

The bank depository also has the right to:

  1. subscribe for securities;
  2. transfer information related to the owner of securities from the issuer to the depositors and vice versa;
  3. maintain a register of shareholders;
  4. issue (sell) forms of securities, verify their authenticity;
  5. carry out collection and transportation of securities, etc.

The information contained in the depositary is strictly confidential.

This type of service is used by clients who own securities issued in documentary form. In order not to store forms at home or in the office, which is fraught with the loss of these securities, the investor transfers them to the depository for storage. Historically, modern depositories have grown out of organizations providing securities custody services.

Services for recording rights to securities

This function is a logical continuation of the previous one. If an investor sells securities, then without the services of a depository, the transaction looks like this: the investor takes his securities from the depository, transfers them to the buyer, who pays the money. However, the transaction can be performed differently, given that the buyer will again deposit the securities in the same depository. In this case, the securities may not be taken from the depository, and the owner of the securities issues a written instruction to the depository to transfer them to the buyer. This greatly simplifies the transaction and reduces the risks associated with the transfer of securities from hand to hand.

The function of accounting for rights to securities began to be used to the fullest extent during the transition to the issue of non-documentary securities. In this case, a special account called "depot" is opened for the investor in the depository. On the “depo” account, the depositor's securities are recorded and records are made of all transactions made by the depositor with securities. The fact that the securities (the rights to securities) have been transferred to the custody of the depositary shall be confirmed by an extract from the depo account. The statement itself is not a security and cannot serve as a subject of purchase and sale.

The relationship between the depository and the depositor is regulated by an agreement, which should reflect:

1. The Subject of the Agreement;

2. term of the contract;

3. the procedure for the depositor to transfer securities for safekeeping, and if the securities are issued in non-documentary form, the procedure for the depositor to transfer information about the rights to securities;



4. the procedure for accounting for rights to securities and the procedure for re-registration of the transfer of rights to securities from one person to another;

5. the amount and procedure for paying for the services of the depositary;

6. the procedure for reporting by the depository to the depositor.

The transfer of securities for safekeeping to a depository does not mean the transfer of ownership of these securities to the depository. The main task of the depository is to ensure the safety of securities or rights to securities and to act solely in the interests of the depositor. The depositary shall not have the right to dispose of the securities, manage them or perform any transactions with them. Due to the fact that the securities kept by the depository are not its property, they cannot be levied on its obligations.

In the process of carrying out its activities, the depository is entrusted with the following functions:

· storage of certificates of securities, if securities are issued in documentary form;

· registration of the encumbrance of the depositor's securities with any obligations (collateral, resource provision, etc.);

· maintenance of depo accounts reflecting in them the number and type of securities of all operations carried out by the depositor;

· transfer to the depositor of information received by the depository from the issuer and the registrar;

verification of securities certificates for authenticity;

collection and transportation of securities.

The depository may perform the functions of a nominal holder, that is, hold securities on its own behalf, without being the owner of the securities. As a nominal holder, a depository may exercise the rights attached to a security only if it receives the appropriate authority from their real owner.

Comparison of depositary and registrar

The activities of the registrar and the depositary have many common features. Both open accounts for holders of securities, take into account the number and type of securities on investors' accounts, reflect all the client's transactions with securities, etc. However, each of them performs a certain amount of work on the market and they complement each other. Table 1 provides a description of depositories and registrars according to their main distinguishing features.

Table 1. Differences between a registrar and a depository

sign Registrar Depository
Contractual relationship Agreement with the issuer for maintaining the register Agreement with a client for custody services
Service object Issuer Securities holders
Accounting function Included in the register of securities holders of one issuer Takes into account investor-owned securities of various issuers
Account type personal account Depo account
Payment for services Mainly paid by the issuer Paid by the owner of the securities
Competitive environment Competes with other registrars for the issuer Competes with other depositories for securities holders

The registrar is mainly focused on the issuer with which he has a contractual relationship for maintaining the register and from which he receives the main amount of remuneration. The depositary is not tied to a specific issuer, it is focused on investors who can store (take into account the rights) securities of various issuers with it. It is more convenient for an investor who owns shares of various issuers to be served in a depository and register all their transactions there than to communicate with various registrars.

If the issuer pays for the registrar's work, the investor pays for the services of the depositary. For clients who have opened a depo account with CJSC "ALOR INVEST", the following tariffs for payment for services of depositories are established:
- Opening a depo account is free of charge,
- A commission of 100 rubles is charged for maintaining an account. per month.
- If no transactions were made within a month, no commission is taken.

Example

As stated earlier, registrars and custodians are very closely related. On fig. 1 shows the interaction of registrars and depositories.

Rice. 1. Interaction between the registrar and depositories

The figure shows that the issuer's shares are owned by 6 persons. Two of them (Sidorov and Ivanov) directly registered in the register and personal accounts are opened on them, each of which indicates the number of shares they own. Other investors preferred to record securities in depositories: Petrov and Tur LLC in depository No. 1, and Sidorov and Sot JSC in depository No. 2. Depo accounts are opened for these investors in depositories. The following will be registered in the register as nominee holders: Depository No. 1 with the total number of shares held by it (1400 shares) and Depository No. 2 with the number of 1200 shares.

Investors registered in one depository, selling shares to each other, register transactions in this depository, which makes changes to their depo accounts. Due to the fact that the total number of shares in the depository has not changed, nothing changes in the register on the nominee account.

Changes in the nominee account occur only when the total number of shares held by the depositary changes (see Figure 2).

Rice. 2. Change of entries in the accounts of nominal holders

If, in our example, Petrov sold 300 shares of Sot JSC, which is registered with another depository, then these changes will be reflected in the register on the accounts of nominee holders. Depository No. 1 will have 1,100 shares in its account, while Depository No. 2 will have 1,500 shares in its account. This operation is shown in Fig. 4.5.

During this operation, 300 shares will be transferred from Depository No. 1 to Depository No. 2. Due to the fact that the total number of shares in each depository has changed, the register on the accounts of nominee holders is subject to appropriate changes.

Concept. Custody activity is the provision of services for the storage of securities certificates and / or accounting and transfer of rights to securities.

Storage of certificates of securities, or securities in documentary form, as an independent activity, is not a professional activity in the securities market and can be carried out by other participants.

For example, documentary securities are often kept in personal (individual) bank safes, i.e. this kind of service is intermarket, since there is always a need to store (preserve) a wide variety of material values. You can store valuables in a warehouse, in a commercial bank, in a law office, in a museum, etc.

In modern conditions, when the majority of issuance securities are issued in non-documentary form, depository activity is mainly the provision of services for accounting and transfer of rights (property) to securities.

The depositary is more of a participant in the secondary securities market, in contrast to the registrar, which is predominantly a participant in the primary market. The fact is that the registrar is responsible for fixing the relationship between the issuer and investors, maintaining and updating it, which is part of the relationship of the primary securities market. The depository, on the contrary, fixes the relationship between investors when changing ownership of securities, which takes place in the secondary market. Its task is to provide a fast and cheap way to transfer the rights to a security from one market participant to another.

The user of the services of the depositary is called a depositor, and the account opened for him in the depositary is called a depo account.

Changing the method of certification of rights to securities in the depository. The transfer of securities accounting to the depository is carried out:

1) when a security certificate is deposited with a depository. In this case, the documentary method of certifying rights to a security is replaced by a non-documentary method, i.e. transactions with these securities are subsequently recorded in the form of entries on depo accounts without issuing new certificates (various variants of this situation are possible depending on the conditions of issue documentary security - whether it involves the issuance of certificates to private owners of securities or there is only a certificate for the issue of this security as a whole);

2) when the depository becomes a nominal holder of securities in the registry system of their owners. In this case, there is a simple transfer of accounting for the relevant securities from the registrar (ie, from the personal accounts of their owners) to the depository (ie, to the depo accounts of the same owners).

Similarly, a depository may be a depositor of another depository or have other depositories as its depositors.

deposit agreement. The depositary provides its services on the basis of a depository agreement concluded with its depositors. Under this agreement:

The depository may not dispose of the securities of the depositors, except for the execution of their instructions regarding these securities;

Securities of depositors may not be levied on the obligations of the depository;

The depository shall be responsible for keeping the certificates of securities transferred to it.

The depository agreement, or agreement on a depo account, shall specify:

Subject of the agreement (storage and/or accounting of rights to securities);

Standard conditions for the implementation of depository activities;

Contract time; the procedure for transferring information related to the disposal of securities to the depository by the depositor;

Procedure for paying for depository services; the procedure for transferring information and income from the issuer of the security to the depositor;

The procedure for exercising the rights of a depositor to participate in the management of a joint-stock company (in the case of shares) or to delegate them.

Types of depositaries. Depending on the purpose of depository services, depositories are divided into:

Estimated; client ("custodial"). Settlement is a depository that serves professional

national participants in the organized stock market. It carries out its activities in an inseparable unity with the systems of trading (transactions), clearing and settlement of tradable securities.

The activities of a settlement depository may be combined only with the following types of professional activities in the securities market: clearing activities and trading organization activities.

Client - a depository that provides all kinds of services to the direct owners of securities. In world practice, the activities of client (custodial) depositories, in fact, merge with the activities of registrars, but in Russia these types of services are not yet combined.

The activity of a client depository can only be combined with the following types of professional activity on

securities market: with brokerage, dealer and securities management activities.

Client depositories may be specialized in accounting for certain types of securities. For example, investment shares issued by mutual funds are accounted for by specialized depositories.

Main functions of the client depository. The functions of a client depository can be very diverse, and most importantly, they are constantly evolving along with the changing and growing variety of needs of securities market participants. Modern depositary functions may include:

Participation in the settlement of the transaction in terms of the delivery or acceptance of clients' securities with the crediting of these securities to client depo accounts;

Accounting and storage of clients' securities in two forms:

1) open storage, i.e. accounting for securities without their breakdown by specific clients in terms of the characteristics of securities (serial numbers and other individual attributes of securities);

2) closed custody, in which the accounting of securities is carried out directly on the registered depo accounts of clients;

Payment of income on clients' securities (dividends, interest);

Support of corporate actions of the issuer in the following cases: - bonus issue and issue of rights; - splitting (split) and consolidation of shares; - conversion of securities; - change of the name of the issuer; - liquidation of the issuer; - exercising the right to vote on shares; - acquisitions and mergers; - redemption of bonds or redemption of shares by the issuer

volume; - reinvestment of dividends (payment of dividends in

form of shares), etc.; management of clients' tax payments related to securities: - various professional assistance to clients in

laté taxes; - monitoring the correctness and timeliness of their payments

you are customers, etc.;

Provision of all kinds of information services to clients relating to securities held on depo accounts, for example, providing information: - about issuers and their actions; - about the securities markets, including the world market; - on changes in the procedures for accounting and reporting on transactions

with securities, etc. Main Differences Between Custodian Activities and Agents

responsibility for maintaining the registry system.

These differences are summarized in table. 5.4.

Table 5.4 Differences between custodian and registrar

Indicators

Contract type

Client type

The essence of professional activity

Account type

Service payer

Storage of securities certificates

Registrar

Agreement for maintaining the register of securities

Accounting for holders of securities of a given issuer

personal account

Basically, the issuer

Missing

Depository

Deposit agreement

Investor (participant in the securities market as their owner)

Accounting for securities owned by this investor

Depo account

Mainly - holders of securities

Provides storage services for securities certificates

Basics of interaction between depositories and registrars. The interaction of the depository with the registrar covers three main points:

1) the depository, in accordance with client agreements for depositary services, becomes registered with registrars as a nominal holder of securities of certain issuers that were previously registered in the name of the depository's clients;

2) the transfer of ownership of the securities of its clients without their re-registration on personal accounts with the registrar (since they are no longer there); re-registration is now carried out by transferring securities

on depo accounts with the depository itself. In the case of a massive nature of transactions with securities, this form of re-registration of ownership rights to them is the fastest and cheapest;

3) resumption of interaction with the registrar. It occurs in the event of a change in the personal account of the depositary with the registrar, which will take place only in a situation where the total number of securities of this issuer deposited in the depositary changes.

Advantages of depository accounting over securities accounting with a registrar. The use of a depository as a nominal holder of securities of an issuer makes it possible to bring the time and place of the change of ownership of a security as close as possible to the place of transactions with it. As a result, the following undeniable advantages of depositary accounting arise:

No need to physically move securities;

Possibility of implementation of the principle "delivery against payment";

Elimination of "technical" boundaries for the movement of capital in the stock market.

Depository systems appeared in order to simplify the process of re-registration of securities. Previously, securities were issued only in documentary form, and accordingly, after each transaction, it was required to issue a new certificate, which was completely unreasonable in the case of speculative transactions on the stock exchange. The institution of depositories made it possible to avoid the physical movement of securities between market participants and therefore did not require the systematic issuance of new certificates.

Depositary accounting of securities has another advantage: it allows you to synchronize the process of transferring securities (re-registering them to new owners) with the transfer of funds between market participants. This process is called delivery versus payment. The movement of money from the buyer to the seller of a security occurs simultaneously with the transfer of ownership of the security from the seller to the buyer. Otherwise, when these processes are not synchronized, there is always a risk that either the money will be received, but the securities will not, or vice versa.

Finally, the depository form of transfer of ownership of securities turns out to be the only possible one with the development

(-issuer) may instruct the depository to perform actions in relation to a certain number of securities on the depo account. The peculiarity of the instruction is the absence of indications regarding the individual characteristics of certificates and underlying securities (category, series, numbers).

Open storage method: essence, place in the classification

The main object of activity of the depository- securities issued by Russian companies (residents of the country). The depository may serve securities issued by non-residents in a situation where this fact does not contradict the requirements of a number of regulations and laws. The task of the depository is to ensure the storage and accounting of the following assets:

Having an undocumented form;
- documentary type, characterized by mandatory storage in special institutions;
- documentary type without special requirements for centralized storage;
- emission and non-issue type;
- Nominal type to bearer.

The main methods of accounting for assets held in the depository include:

1. Open method implies accounting by the depositary of only the total number of the issuer's assets. Individual signs such as rank, series or number are not indicated. It also does not provide for the indication of individual signs of certificates. The peculiarity of the open method is also that the depository can give instructions only in relation to the total number of assets on the account of the depository. In this case, individual characteristics are not taken into account.

2. Closed way- a special option for storing securities, which implies not only accounting for the number of assets, but also an indication of their personal (individual) characteristics. Closed method - an opportunity for a depositor to send instructions in respect of specific securities held and accounted for in a depo account, as well as having a number of individual characteristics. Work is carried out only with documentary type securities. Accounting for assets is carried out by issuing a counter of numbers containing data identifying the owner, as well as a storage location.

3. Marked variant- storage of assets on the personal account of the client (issuer). With such storage, all instruments are divided into groups, each of which includes securities with their own terms of issue. The client (depositor) has the right to instruct to perform actions in relation to securities with an exact indication of the features or the group in which it is stored. A labeled storage variant implies that the depository maintains a directory with a group of features that make it possible to identify features and groups.

In addition to those described above, there are two more storage options. :

- safe. In this case, the depositor and the depository do not maintain constant communication. The depositary performs only the functions of a storage (safe) for the issuer's valuables;

- connected. With this type of storage, the depository performs a number of functions in relation to clients and its assets - accounting, storage, and information services. Thus, the depository can notify about the time of meetings of shareholders and the payment of profits on assets. In addition, the depository has the right to combine the functions of a transfer agent or a paying agent.

Securities held on depository accounts are calculated in pieces. Securities, the terms of issue of which imply the issue of assets of different denominations, are considered taking into account the par value. The depositary may personally determine the storage schemes used by him in the event that a specific method of storage is not prescribed in the terms of the release of the asset.

Open method of storage: the nuances of receiving and accounting

An important point in the work of the depository is the organization of the registration and storage of securities. The basis for the transaction is the instruction of the client (initiator) to perform the transaction, as well as the notification of the registrar in relation to the transaction for crediting securities to the account of the "custodian". If it is not possible to match the instruction and notification, the depository may require confirmation of this correspondence.

When conducting a transaction in another depository, where the client's securities are taken into account under the terms of another depository, the custodian may require the company to present an additional package of securities in relation to the requirements of the other depositary party.

Acceptance of documentary-type securities for open storage (accounting) has the following aspects :

The depositary company may hold documentary-type securities subject to the requirements and norms of the Russian Federation;

The depository may transfer documentary-type securities for accounting and safekeeping to another depository with which an inter-depository agreement has been signed. At the same time, the accounting or storage of order or bearer assets is carried out by transferring assets to a special depo account of the depository, with which a deposit agreement has been concluded. At the same time, the assets are stored with another depository, taking into account the conditions of its storage;

A memorial order, which implies accounting for values, as well as an act of acceptance and transfer of assets, act as documents during the execution of a transaction.

Acceptance for open storage of assets intended for qualified market participants, the depository credits the specified assets to the depository account of the holder in the event that the latter is qualified. Acceptance is also made in a situation where the client does not belong to qualified investors, but has acquired securities in accordance with applicable law.

The depositary may credit securities with restricted circulation to the depo accounts of nominee holders in the event that the accounts are opened by another depositary party. In addition, crediting can be made to the depository of the pledge holder or trustee.

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