As part of our depository activities, we have established correspondent relations with all the main participants in the Russian securities market, we maintain all types of accounts, which allows our clients to carry out almost any operations on the securities market in the shortest possible time and without extra costs. The Depository of Promsvyazbank provides services on the basis of a license of a professional participant in the securities market to carry out depository activities No. 177-03960-000100, issued by the Federal Commission for the Securities Market on December 15, 2000. We are also a member of the Self-regulatory organization "National Financial Association"
As of January 1, 2019, more than 54,000 securities accounts of legal entities and individuals have been opened, the market value of securities accepted for servicing is more than 111 billion rubles, more than 1,300 issues of securities of Russian and foreign issuers have been accepted for servicing. The amount of insurance coverage under the insurance agreement with the Insurance Public Joint Stock Company "Ingosstrakh" for 2019-2020 is 350 million rubles. In our work, we use a remote access system when interacting with NPO JSC NSD, the central depository of the Russian Federation.
The Depository provides its clients with a full range of services for accounting and certification of rights to securities, including:
- accounting and certification of rights to corporate securities in securities accounts,
- accounting and certification of rights to government securities of the Russian Federation,
- accounting and storage of securities of documentary form of issue, including bills of exchange of Russian issuers,
- re-registration of rights to securities in the registers of owners of registered securities,
- transfer of income from securities recorded in clients' securities accounts,
- presentation of securities certificates for redemption, acceptance, etc.,
- consultations on issues of circulation and accounting of rights to securities,
- servicing corporate actions of issuers; other operations facilitating the implementation of the rights of securities holders.
In order to improve settlements for transactions in securities denominated in foreign currencies, as well as to expand the opportunities for our counterparties and clients to invest in securities, Promsvyazbank opened correspondent custody accounts in the international settlement and clearing systems Clearstream Banking S.A. and Euroclear Bank S.A./N.V.
We are pleased to offer Depository clients:
- conducting depository operations for transactions with foreign securities on DVP/RVP terms (delivery/receipt against payment);
- making payments and monitoring their execution in real time;
- competitive tariffs for depository services for securities denominated in foreign currency.
The depositary of Sberbank PJSC rightfully occupies a leading position in its market segment. However, despite the growing activity of the population in matters of exchange activity in 2019, many still do not know what it is.
A division of a financial institution acting as a professional participant in exchange activities is perceived as a depository. This division, unlike brokers, takes on responsibilities not for carrying out purchase and sale processes, but for recording and storing securities, as well as records of actions with them.
A client wishing to purchase securities must open a deposit account to deposit them. They will be listed on this account and will be used to manage them.
The depository is responsible for servicing such accounts.
Services are provided for both enterprises and individuals. persons
What is the Sberbank depository used for:
- transfer of securities from one account to another in accordance with the documentary support of the process;
- exchange of securities between different depositories;
- receiving statements or other reports from depo accounts;
- crediting income and dividends on existing assets.
Sberbank depository for individuals addresses
Good afternoon, dear readers. In today's article we will touch upon such a topic as depository services for individuals, the need for which arises for almost all people operating in the stock market, regardless of whether they are traders, investors or anyone else.
After analyzing the depository services market, our team identified an offer that seemed the most acceptable and convenient. And now I will tell you more about it.
Let us begin, however, by defining the term and listing the specific functions of the depository organization.
So, depository services are commercial services related to the storage of securities by a depository company, as well as the implementation of operations related to a change in their owner.
Simply put, an organization that has a license to conduct depository activities (depository) enters into an agreement with a shareholder (depositor) who transfers his assets into its custody on the basis of a depository agreement.
Some companies offer both traditional and specialized custodial services. One of the leaders in this area is the Region group of companies. The priority direction of its activity is the provision of specialized depository services for maintaining registers of mortgage coverage.
Depository services have no connection with bank deposits and investments of funds, contrary to their similar names.
Securities custody mechanism
According to the depository agreement, a shareholder who wishes to leave his securities for safekeeping is assigned an individual depository account, similar to what happens with ordinary savings, trading and current accounts.
Only it will be not currency that will be credited to the deposit account, but securities. And its main measure is not the amount of money, but the specific number of units of a particular asset (stocks, bonds, etc.).
The client can manage his depository account and the assets stored on it at his own discretion, using the interface and software provided by the depository company. Again, managing such an account is not much different from operations with an ordinary cash account. The only difference is in the units of measurement.
Depository services Zerich
And here is the very proposal that seemed to our team the most preferable out of several dozen options. It comes from the brokerage company Zerich, which specializes in operations with the stock market and has a professional license to carry out depository activities.
We chose this company for a number of reasons. Firstly, the combination of brokerage and depository services available to Zerich clients allows them to significantly save time on all operations related to securities. They can be produced, as they say, without leaving the cash register. We purchased a block of shares and immediately transferred them for safekeeping without leaving your personal account.
Secondly, significant savings on commission costs, as well as costs associated with registering a new owner of securities.
Thirdly, a broker that has all the capabilities and functionality to carry out a full range of transactions with securities guarantees you timely payment of dividends and compliance with all deadlines for asset re-registration operations. Which is logical, given the purchase that is made through its platform.
Zerich offers its clients the following services:
- Accounting and recording of ownership rights to securities.
- Execution of client orders related to the pledge of securities and all forms of settlement thereon.
- Opening a full-fledged depository account for certificates of ownership of securities.
- Providing assistance in all operations related to the exercise by shareholders of their rights to securities, including: transferring dividends and interest on shares to the client’s account, information support and support at all stages.
- Representation of client interests at shareholder meetings (if necessary).
- Control of primary documentation related to the change of owner of securities, “tracking” of purchase/sale transactions.
- Consulting services related to filling out documents and much more.
There is also a detailed depository service agreement, with the rights and obligations of the parties specified in it, as well as client regulations with all provisions related to the client in one way or another.
The agreement is freely available and no additional operations are required to download it.
As for the tariffs for depositary services, they are also listed on the official website and client regulations, and their size is small and quite reasonable.
To summarize, I will say that if you work with securities, no matter what type they belong to, it is quite difficult to do without depository services, because it allows you to significantly simplify all related procedures, and calmly make a profit without being distracted by “paper” issues.
Best regards, Nikita Mikhailov
The depository activities of banks in the securities market are usually carried out in conjunction with their brokerage and dealer functions.
Depository activities– is the provision of services for the storage of securities certificates and (or) accounting and transfer of rights to them. It relates to professional activities in the securities market, therefore, to work as a depository, banks must obtain a special permit - a license of a professional participant in the securities market, which is issued by the Federal Financial Markets Service of Russia.
A professional participant in the securities market carrying out depository activities is called depository. The person using the listed services is called depositor.
In recent years, the demand for depository services of banks has increased sharply. This is due, firstly, to the widespread use of paperless technologies for the circulation of securities, when they are not issued on paper - certificates; secondly, with the desire of banks to provide clients with comprehensive and in-depth services in the securities market, including brokerage operations, trust management, and depository services. Banks, compared to other professional market participants, have a good material and technical base that allows them to provide such customer service and constantly expand and update their line of services in the securities market.
The object of depository activity can be securities of any form of issue (documentary with and without mandatory centralized storage, uncertificated), issued by both residents and non-residents of the Russian Federation.
Depository activities include the mandatory provision of services to clients (depositors) for accounting and certification of rights to securities, as well as their transfer, including cases of encumbering securities with obligations. Depository accounting(accounting for depository operations) is the accounting of securities in order to obtain complete and reliable information about securities in the context of their owners, places of storage and depository operations applied to them.
The depository provides its client with the listed services for a certain fee. The procedure, forms and conditions for their implementation are determined deposit agreement, or securities account agreement, between the depository and its client, regulating their relationship. This agreement must necessarily contain the following essential conditions:
- an unambiguous definition of the subject of the agreement: provision of services for the storage of securities and (or) recording of rights to them;
- the procedure for the depositor to transfer information to the depositary about the disposal of their owner’s securities deposited in the bank;
- responsibilities of the depositary to carry out the depositor’s instructions, the timing of their implementation;
- the procedure for the provision by the depository of services related to assistance in the implementation by owners of securities rights, including by transferring relevant information and documents from the owner to the issuer and registrar and vice versa;
- duration of the agreement, grounds, procedure for its amendment and termination, including the right of the depositor to terminate the agreement with the depositary unilaterally;
- the procedure and form of reporting by the depositary to the depositor;
- amount and procedure for payment for depository services.
In addition to the specified mandatory services, which are the depository activity itself, the depositary may, under an agreement with the depositor, provide him with related services that improve the quality of such services. The procedure for providing related services can be specified both in the depository agreement and established by a separate agreement between the parties.
Related services include: maintaining cash accounts of depositors associated with conducting transactions with securities and receiving income from them; checking securities certificates for authenticity and payment; withdrawal from circulation, redemption and destruction of securities certificates, separation and redemption of coupons in cases established by law; but on behalf of the owner, representing his interests at general meetings of shareholders, providing depositors with available information about issuers, information on the state of the securities market; assistance in optimizing the taxation of income from securities; and etc.
The depositary is obliged to approve the conditions for carrying out depository activities, which must contain information relating to the operations it performs, the procedure for the actions of depositors and depository personnel during their implementation, the grounds for carrying out operations, sample documents that must be filled out by clients of the depositary and which depositors receive in their hands, deadlines execution of operations, tariffs for depository services, procedures for accepting the issue of securities by the depository for servicing and its termination, the procedure for providing depositors with statements from their accounts, the procedure and timing for providing depositors with reports on transactions performed, as well as documents certifying the rights to securities. The conditions for carrying out depository activities are open in nature and are provided at the request of all interested parties.
Clients of the depository can be not only the owners of securities, but also other depositories, issuers that place securities through the depository, holders of pledged securities, and trustees of securities.
The depositary bears civil liability for the safety of the securities certificates deposited with it. It should be noted that the conclusion of a depository agreement does not entail the transfer of ownership of the depositor's securities to the depository. The depositary does not have the right to dispose of the client’s securities, manage them or carry out any other actions with securities on behalf of the latter, except on the client’s instructions stipulated by the deposit agreement. Depositors' securities cannot be seized for the bank's obligations. In the event of bankruptcy, the securities of the depositors are not included in the bankruptcy estate.
When characterizing depository activities, it is important to distinguish between a custody agreement and a securities account agreement. Both of these agreements provide for the storage of securities certificates. But at the same time, the storage agreement does not provide accounting for rights to securities. Therefore, the actual storage of securities certificates is not a depository activity.
In the Russian Federation, due to the existence of various forms of securities circulation, two possible options for depository activities have emerged:
- the depositary records rights to securities, but does not store their certificates (book-entry securities, securities with mandatory centralized storage);
- the depositary stores certificates and records the rights to them (certificate securities, the certificates of which are stored in the depositary's vaults).
Consequently, depository storage of securities necessarily implies accounting for rights to them.
The management of depository operations in a bank is assigned to a separate division for which this activity must be exclusive. This is necessary to prevent bank employees from inappropriately using information about the ownership of securities and related transactions for purposes that do not directly arise from their official duties.
In addition to the conditions for carrying out depository activities, the bank depository is obliged to develop and approve internal documents defining:
- the procedure for performing transactions and document flow of the depository;
- rules for keeping records of depository operations and relevant procedures that ensure and support separate storage of securities and (or) recording of the rights to them of each client (depositor), as well as accounting for securities owned by the depository itself;
- internal control rules to ensure data integrity, including in case of emergencies, delimitation of access rights and ensuring the confidentiality of information, preventing the possibility of its use in their own interests by the depository, its employees and third parties to the detriment of the interests of clients (depositors);
- procedure for considering complaints and requests from clients (depositors).
These documents establish the internal procedure for the functioning of the depository and the actions of its employees when processing depository operations. Internal documents and conditions for carrying out depository activities constitute the so-called Depository regulations.
When recording rights to securities in the depository, the right to the security passes to the acquirer from the moment a credit entry is made on his securities account. Accounting for rights to securities in the depository is carried out by maintaining records in special accounts - securities accounts. Accounting is carried out in pieces. Additionally, credit institutions can keep records in units in which the denomination of the security is established. The depository opens a separate securities account for each client to record the rights to the securities he owns. Thus, separate storage of securities and (or) separate accounting of the rights to them of each depositor from the securities of other depository depositors is ensured.
As already noted, the depository can carry out operations with the depositor's securities account only on behalf of the depositor or persons authorized by him. The basis for making entries is an order from the client or his authorized person that meets the requirements of the depository agreement, as well as documents confirming the transfer of rights to securities in the event of transfer of rights to securities not as a result of civil transactions. For example, when placing a new issue of securities among shareholders by capitalizing dividends, the securities are credited to securities accounts in the depository on the basis of documents provided by the issuer or registrar, extracts from the register maintenance system for the nominal holder's account and the conditions for issuing securities.
In the chart of accounts of banks, a separate chapter D “Depo Accounts” is allocated to reflect depository operations.
The Russian stock market is gaining momentum every year, and there are many people willing to purchase various securities. Today, most papers exist in electronic form and are located in certain accounts. In addition to electronic records, their analogues in the form of familiar documents (certificates and bills of exchange) are still common. For accounting and storage, many banks offer to act as a depository. Owners can re-register, keep records and store their exchange assets. Since banks work with a license, they can carry out the procedure for paying dividends and make settlements on transactions. Sberbank, which is trusted by many investors, provides similar depositary services to clients.
The institution has a perpetual depository license, which gives it the right to service investment funds. Depositors use an electronic signature. With its help, they can remotely carry out all financial actions with exchange assets, sending the necessary orders. EDS guarantees the confidentiality of transmitted orders.
Depository services at Sberbank include the following operations:
- storage of any type of certificates (possibly in electronic form);
- when receiving papers for storage, the banking institution does not take ownership of them, it only provides assistance in recording the rights to them;
- opening and formation of securities accounts, transfer of securities under purchase and sale or gift agreements between securities accounts of different depositors;
- carrying out transactions;
- transactions with bank bills;
- imposition and removal of encumbrances on securities that are pledged;
- crediting income and paying dividends;
- participation in shareholder meetings, as well as other actions in the interests of issuers;
- providing information and lending.
Depository services The Sberbank Online platform gives clients additional opportunities:
- control over position balances;
- viewing outstanding payments for using the depository;
- issuing an order to transfer securities in open storage;
- filling out an application for registration of new securities;
- obtaining information about the client.
To carry out such actions, just go to your personal account on the website.
Advantages
One of the significant positive aspects for clients who have entered into an agreement for depository services with Sberbank is that it is the largest depository in the Russian Federation. Thanks to the huge number of divisions, its functions include maintaining more than 390 thousand securities accounts. The Bank offers depositors (both residents of the Russian Federation and non-residents) a variety of services and transactions with exchange assets of issuers in the Russian Federation and other countries. Clients receive these services in 70 divisions located throughout the Russian Federation. To exchange information with depositors, remote service systems are used (Bank-Client, EDI, SWIFT). The bank’s specialists developed a unique “Depository” system, which allows accounting under conditions of strict adherence to information security.
Advantages of a depository Tariffs for small businesses
Depository services offered by Sberbank include low tariffs. Some services for depositors are free. Thanks to this, small businesses can use the service to work with exchange assets. The Bank has established different costs for depository services for individuals and legal entities. Tariffs for individual entrepreneurs are the same as for legal entities. You can view the list and tariffs on the website by going to the “Depository Services” section.
