CENTRAL DEPOSITORY

x Depository activity – is a number of measures for provision of services, associated with safekeeping of securities’ certificates and recording transfer of rights to the securities. The main aim of CSD is to ensure safe-keeping of securities and acts on behalf of the depositor.

x Clearing activity – is an activity related to defining obligations of sellers and buyers of securities and regulation of the transfer of money to sellers and transfer of securities to buyers.

x Central Depository with the aim of exercising the rights of depositors and their clients provides the following:

- Informs the depositors about the upcoming shareholders’ meeting, provides the agenda and other materials needed for executing depositors’ rights;

- Compiles the list of owners of securities for ensuring the right of the owners of securities to participate in the shareholders’ meeting and other rights;

- Controls and conducts corporate actions, including conversion of securities, additional securities accrual, restructuring and liquidation of issuers;

- Informs the depositors about other information related to securities, serviced at the CSD, including information regarding сhanging of specifications of the issue;

- Provides the depositors with the information received from the senior depositories, registrars and issuers;

- Compiles the list of owners of securities for acquisition of revenue, maturity value and other payments ;

- Transfers the revenue for securities to depositors’ accounts;

- Informs the depositors about the upcoming dividends payment, maturity value and other payments;

- Provides the depositors with the additional information, needed for calculation of taxes.

x One of the main directions of depository servicing is enabling the owners of securities to exercise their rights quickly and in time and to be able to participate in company’s activity. For these purposes, the system of communication of depositors about all the necessary information regarding issuers’ securities and corporate actions is created, providing the depositors (depositors’ clients) with complete and latest information regarding the securities serviced at the Central Securities Depository.