Sberbank completes automatic conversion of depositary receipts into shares
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Sberbank announced the completion on September 2 of the process of converting blocked depository receipts into shares. This is reported “Prime” with reference to the statement of the credit institution.
“Sberbank informs that the depositary bank, in which the depository programs account is opened, has completed the procedures for auto-conversion of blocked depositary receipts of Sberbank, which were accounted for in Russian depositories,” the bank’s press service said.
A depositary receipt is a certificate certifying ownership of a share or bond of a foreign issuer. In fact, this is the same security that was issued by the issuer, but placed on the stock exchange in another country. There it is traded in the form of a receipt.
Converting depositary receipts into shares started August 15. The Bank of Russia said that it will last two to three weeks. Depository receipts will be written off from the accounts of the owners and the shares of Russian issuers will be credited instead.
Depository programs of Russian issuers are serviced by five depositories: Raiffeisenbank, Citibank, J.P. Morgan Bank, GPB Bank and Sberbank.
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