The Central Depository carries out activities on depository accounting and servicing of circulation of securities placed in Ukraine and abroad, and corporate transactions of the issuer on securities accounts of customers in accordance with the competence for securities accounting established by the Law “On the Depository System of Ukraine”.
The clients of the Central Depository are issuers, the National Bank of Ukraine, depository institutions, correspondent depositories, clearing institutions and the Settlement Center.
Depository assets for the Central Depository are global securities certificates and temporary global securities certificates, certificates of immobilized bearer securities, as well as entries on securities accounts of the Central Depository in depositories of other countries and in international depository and clearing institutions.
The exclusive competence of the Central Depository includes:
1) the enrolment of securities (except for securities falling within the competence of the National Bank of Ukraine) in the system of depository accounting, their accounting and storage, as well as writing-off of securities in connection with their redemption and/or cancellation;
2) record-keeping of the issuer's obligations under the securities of its own issues (except for securities falling within the competence of the National Bank of Ukraine) in respect of each securities issue based on the deposit of a global certificate and/or a temporary global certificate;
3) storage of global certificates and temporary global certificates (except for global certificates and temporary global certificates of securities issues falling within the competence of the National Bank of Ukraine);
4) implementation of the numbering (codification) of securities in accordance with international norms, keeping a register of codes of securities (international identification numbers of securities);
5) drawing up of registers of holders of registered securities (except for securities falling within the competence of the National Bank of Ukraine);
6) storage of information on persons designated to provide the register of holders of registered securities to the issuer;
7) receipt of income and other payments from issuers' operations (including those placed and rotating outside Ukraine) to the account of the Central Depository opened at the Settlement Center for further transfer to the recipients;
8) opening and maintenance of securities accounts of issuers, the National Bank of Ukraine, depository institutions, correspondent depositories, clearing institutions and the Settlement Center;
9) maintaining a securities account of a depository institution that has terminated its depository activities or whose appropriate license was revoked for violations in the securities market or in another case determined by the Commission, as well as responsible storage of documents, databases, copies of databases, archives of databases of the depository institution, information on those of its depositors who, in accordance with the established procedure, did not close their securities accounts and securities that were accounted for in their accounts, and the provision of the information on the state of such accounts in accordance with the legislation;
10) establishment of unified rules (standards) for the display and transmission of the information on accounting and securities, servicing corporate actions of issuers and other information that is entered into the system of the depository accounting;
11) the introduction of international standards on the implementation of depository activities;
12) control over clients in the part of performing their depository activities in the manner and within the limits established by the Law “On the Depository System of Ukraine".
The Central Depository can provide services to the issuer for organizing and holding a general meeting of shareholders. It can also carry out individual banking operations on the basis of a license to carry out certain banking operations received in accordance with the procedure established by the National Bank of Ukraine.
The Central Depository may carry out other activities not prohibited by law.
The following indicators are used to measure and assess the risks of depository activities of the Central Depository:
CAPITAL ADEQUACY RATIO. It is calculated as a ratio of the amount of capital to a value that is 25 % of the fixed overhead costs of an institution for the previous fiscal year. The normative value of the ratio for the Central Depository is at least 1.
OPERATIONAL RISK COVERAGE RATIO. It is calculated as the ratio of an institution's capital to the value of its operational risk at the level of 15% of the average annual net income of the institution for the previous three fiscal years, in which a positive net income was received. The normative value of the ratio for the Central Depository is at least 1.
The Central Depository must disclose the following information:
The Central Depository, apart from disclosing the information in accordance with the requirements of this Procedure, must disclose the information in the manner and within the terms provided for by the legislation for legal entities established in the form of a public joint stock company.