National Depository of Ukraine was established according to the Law of Ukraine ‘On National Depositary System and Peculiarities of Electronic Circulation of Securities in Ukraine’ to ensure functioning of a single depositary record-keeping system.

On December 18, 1998, the Securities and Stock Market State Commission and the National Bank of Ukraine signed an Agreement on Establishing the National Depository of Ukraine. NDU registration with the State took place on May 17, 1999.

NDU share capital makes up UAH 103 200 000. The State represented by the National Securities and Stock Market Commission owns 25 % of shares. In addition, the National Bank of Ukraine owns 25 % of NDU shares.

Until October 12, 2013, National Depository of Ukraine was exercising professional activity on the stock market on the grounds of licenses issued by  the Securities and Stock Market State Commission — a ten-year valid license for exercising depositary activity of a securities depository and a ten-year valid license for exercising clearing and settlement activity.   

On October 12, 2013, the Law of Ukraine ‘On Depositary System of Ukraine’ came into force (hereinafter - the Law).

According to Article 9, part 2 of the Law, CSD is a legal entity which operates in the form of a public joint-stock company under the Law of Ukraine ‘On Joint-Stock Companies’ with consideration of peculiarities set by the Law. Once CSD GTC are registered by the National Securities and Stock Market Commission in keeping with the stipulated procedure, a joint-stock company is deemed to have obtained a CSD status.

On October 1, 2013, the National Securities and Stock Market Commission registered CSD GTC submitted by NDU (Commission’s Resolution No. 2092 as of 01.10.2013).

CSD provides for the securities depositary record-keeping system setting-up and functioning.

CSD keeps depositary records of all eligible securities, except for those, records of which are kept by the National Bank of Ukraine within the terms of reference defined by this Law.

CSD GTC define general procedure of rendering CSD services related to depositary activity, executing transactions within the depositary record-keeping system, CSD oversight over depositary institutions.

CSD’s exclusive terms of reference are as follows:

• crediting securities (except for securities within the terms of reference of the National Bank of Ukraine) into the depositary record-keeping system, their record-keeping and safekeeping as well as debiting as a result of securities redemption and/or cancelation;

• on the grounds of deposited global certificate and/or temporary global certificate keeping records of issuer’s obligations arising from own issues’ securities (except for securities within the terms of reference of the National Bank of Ukraine) with regard to each securities issue;

• safekeeping of global certificates and/or temporary global certificates (except for global certificates and/or temporary global certificates of securities issues within the terms of reference of the National Bank of Ukraine);

• securities numbering (codification) according to international standards, keeping a register of securities codes (International Securities Identification Numbers);

• drawing up registers of registered securities owners (except for securities within the terms of reference of the National Bank of Ukraine);

• storing information on entities, selected to provide an issuer with a register of registered securities owners;

• receiving income and other proceeds as a result of issuers’ corporate actions (including securities that are placed and circulate abroad) on CSD’s account with the Settlement Center for their further transfer to recipients;

• opening and maintaining securities accounts for issuers, the National bank of Ukraine, depositary institutions, correspondent depositories, clearing institutions and the Settlement Center;

• maintaining a securities account of a depositary institution, which has terminated its depositary activity or the relevant license of which has been cancelled because of malefaction in the securities market or in another case, defined by the Commission, as well as responsible safekeeping of documents, database, backup database, archive database of such depositary institution, information on those depositors that have not closed their securities accounts according to the established procedure, and securities, which had been accounted on their accounts, and submission of information on such accounts’ status according to legislation;

• establishing single unified rules (standards) of reflection and transference of information on securities recordkeeping and circulation, issuers’ corporate actions servicing and other information inputted into the depositary record-keeping system;

• implementation of international standards on depositary activity;

• customers’ depositary activity supervision according to the procedure and within the limits stipulated by this Law.

CSD can render services to issuers on organizing and holding general meetings of shareholders.

CSD can exercise other activities not prohibited by the law.