Moscow Exchange, in conjunction with the regulator and market participants, is developing a new system for corporate actions based on the latest global standards to ensure full transparency for Russian and global investors.
Depositories will enable their customers to participate in corporate events, acting in their names without proxies and other formalities. Regardless of the format in which instructions are received from a customer (hard copy, phone, fax, SMS, etc.), the depository will create documents in standardised electronic format and send them to the issuer.
Investors will be given the opportunity to choose the voting option for meetings of securities holders: in addition to conventional voting in person, they will be able to complete and send a ballot in hard copy or to give the appropriate instruction to their depository. An e-voting service that will allow securities holders to examine meeting materials on a special website will also be introduced.
Given the importance of maintaining a stable and predictable corporate action system, Moscow Exchange is focusing on making the new technologies it introduces as secure as possible. Russian securities market players expect improved transparency to provide better protection of investors’ rights on the Russian financial market, while ensuring equal access to corporate events to all shareholders. The issuer will in turn be able to increase coverage of its investor base by enabling investors to participate in oversight of the company, enhancing transparency of decision-making and the quality of corporate governance.
Creating an official corporate information centre is a key prerequisite for the reform to be successful. The centre will guarantee all stakeholders equal access to information about issuers, financial instruments and corporate actions. The central depository will receive the information in a structured electronic format directly from issuers. This data will then be disseminated automatically in the record keeping system and be available to all stakeholders on a special site.