Project Financing

The Depositary was established in 1995 and is presently operating under Depositary Activity License of Professional Securities Market Participant No. 177-03198-000100 as of December 4, 2000 issued by the Federal Commission for the Securities Market. Absolut Bank is a member of the NAUFOR (National Association of Stock-Market Members) self-regulating organization.

The Depositary of Absolut Bank provides the entire range of depositary services accepted on the modern securities market:

• acceptance for safekeeping and issuance of certificated securities;
• acceptance for registration of uncertificated securities and their deregistration;
• re-registration of securities in the shareholders registers and higher-level depositaries;
• participating in lending against the pledge of securities and performance of repurchase/repo transactions with securities;
• performance of pledging transactions and registration of other cases of encumbrance;
• checking the authenticity of certificated securities;
• collection and carriage of certificated securities;
• redemption of securities and/or coupons thereof;
• receipt, checking and transfer of the income on securities;
• opening of accounts in the client’s name with various registrars and at other depositaries;
• consultation on the problems of registration and safekeeping of securities, re-registration of ownership rights, encumbrance, etc.;
• information and related services for corporate activities of issuers;
• provision of consulting services in the exercise of the rights by the owners of securities.

The Depositary can operate on-line with the main exchange depositaries of Moscow Interbank Currency Exchange and the Russian Trading System: NP National Depositary Center and CJSC Depositary-Clearing Company, which allows transactions to be settled on the day when clients issue instructions for re-registration of securities.

Operations with bonds denominated in US dollars are carried out with the use of the S.W.I.F.T. system and Telex.

The electronic data interchange system uses cryptographic protection means, encoding keys and electronic-digital signature.

As of January 1, 2007 the Depositary of JSCB Absolut Bank (CJSC) has 496 clients. It has opened 291 depo accounts for natural persons and 205 accounts for legal entities. The Depositary has correspondent accounts at more than 50 Depositaries and Registers.

The nominee holder’s and fiduciary manager’s accounts are opened at such large Russian depositaries as NP National Depositary Center, CJSC Depositary-Clearing Company, Vnesheconombank, JSB Gazprombank, Rosbank, at foreign depositary Donau-Bank and also with 25 Moscow and regional registrars.

As a mandatory rule, every month and every three months, periodic reconciliations of the securities balances on the depo accounts are to be carried out on a monthly and quarterly basis.

As of January 1, 2007, the Depositary of JSCB Absolut Bank (CJSC) accepted over 200 issues of issue-grade and non-issue-grade securities of the clients. Such securities include shares of Russian enterprises, government and corporate bonds, promissory notes, membership units.

Internal depositary registration is carried out by means of certified software Diasoft 5NT Version 3.5, Release 9, which makes it possible to delineate the users’ access rights, operate with individual passwords, create backups of databases. This software is used to keep separate records of the securities owned by the Bank and by its clients; open individual custodian/depot accounts for each client with the assignment of a unique number; form reports on completed operations; prepare reports for submission to supervisory authorities.

The Depositary vault is equipped in accordance with the requirements of the supervisory and licensing authorities and the norms of applicable laws. Every week, the securities kept in the vault are reviewed to remove any possibility of shortage or excess of deposited securities.

For a natural person:

The following documents are to be presented for opening a depot account at the Depositary of Absolut Bank:

• Contract of Depot Account (2 copies)
  • Contract of Depot Account with Natural Person
• Depositor’s Questionnaire
• Client’s Questionnaire
  • for natural persons
  • for natural persons – individual entrepreneurs
• Depot Account Application
• Passport

For a legal entity:

The following documents are to be presented for opening a depot account, fiduciary manager’s depot account and/or inter-depositary depot account at the Depositary of Absolut Bank:

• Contract of Depot Account (2 copies)
  • Contract of Depot Account with Legal Entity
  • Contract of Fiduciary Manager’s Depot Account
  • Contract of Interdepositary Depot Account
  • Contract of Depot Account Trustee
• Depositor’s Questionnaire
• Client’s Questionnaire
  • for legal entities – credit institutions
  • for legal entities – non-credit institutions
• Trustee’s Questionnaire
• Operator’s Questionnaire
• Depot Account Application
• and a set of constituent documents in accordance with the provided list
  • for legal entities – residents of the Russian Federation
  • for legal entities – nonresidents of the Russian Federation

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