Centrálny depozitár cenných papierov SR supports the creation of centralised corporate action information source for participants on the capital market. Namely for security issuers, investors, intermediaries and other clients. Advantage of the new information system is not only the fact that all important information is going to be distributed centrally, available on one place, but also that this information will be updated for all involved parties.
By creating a new information system, Centálny depozitár cenných papierov SR also responds to the requirements of issuers, or investors respectively. “Capital market participants themselves have long been interested in a centralised source of information on corporate events, as there is no such source on the market,” says Ľubomír Demčák, the Head of the Issues Department of CDCP, about the idea.
Issuers or security holders will be able to find all the necessary information in the freely accessible register. In particular, included will be notifications of convening the General Meetings of companies issuing shares, but also information on bondholders meeting. “The possibility to publish information is available not only to issuers who are obliged by the law to make such notifications, but also to issuers who do not have shares traded on the regulated market, as well as to issuers of bonds who do not have a legal obligation to inform the depository about meetings of bondholders,” explains Ľ. Demčák. In addition to the fact that the information is available in one place, on the website, CDCP sends this information directly from its system to participants who have securities from the issues in question registered in their accounts. Participants then arrange for this information to be distributed to their clients.
Except information on the General Meeting or bondholder meetings, the central depository publishes also issuance terms and conditions of bonds and investment certificates. As regards the issuance conditions of bonds and investment certificates, under the Act on Bonds, the issuer is obliged to submit the issuance conditions to the central depository within 15 days from the date of their issuance. The central depository allows the issuers of bonds to contractually agree and to publish proactively the submitted issuance terms and conditions on the depository’s website. „In case an investor is looking for a potential investment, again it is possible to find the specific issuance terms and conditions in one place on our website, as long as the issuer requested to publish them. And, in case the issuer updates the conditions and delivers them to CDCP, he will find them there as well.“ says Ľ. Demčák. An investor who wants to search for the issuance terms and conditions on the CDCP‘s website, needs to know an ISIN code of the issue.
By publishing information on convening of the general meetings, the central depository implemented into practice the requirements from Shareholder Rights Directive II (SRD II), which extends the obligation to inform on convening of general meetings of companies. Particularly, this obligation applies to all companies that have issued book-entry shares and these are publicly traded on the stock exchange. Aim of the directive is protection of shareholder rights, focused mainly on small investors.
“We would welcome issuers and investors to get used to our unified system of informing on corporate events, but also to CDCP as a source of information on the issuance terms of bonds and investment certificates. It is because we perceive the above-mentioned as an opportunity to create a professional centralised source of information that will benefit all capital market participants,” adds Ľ. Demčák.
