Depository ... What is it? Agree, initially there are associations with deposit boxes in which customers of banks and other financial institutions store their values. But this is not so. As part of the article, we will consider what constitutes a depository. This can be useful in cases where you have to work in the stock market.
general information
It should be noted that the comparison with bank deposit boxes is still true, however, only partially. So what is meant by depositories? This designation is used for participants. securities market. Typically, they are banking units, brokers, dealers, registrars, exchanges, and trustees. All of them form a single system of the securities market. What are the functions of depositories? This is a securities account. Specialists of this structure are also involved in the control of property rights and record the transfer of rights. Consider a small example. Planned acquisition of shares. In this case, they must be credited somewhere. For this purpose, the depository opens a depot. So they call a certain set of depositary records. It is precisely on it that all purchased papers will be listed. These are the functions of the depository.
What securities do they work with?
Most of the shares and bonds that are in circulation are presented in the form of electronic records located on certain accounts. It should be noted that there are more familiar non-issuing analogues that represent promissory notes, as well as mortgages, savings and certificates of deposit. They have a physical form and are presented as ordinary documents that are stored on paper. A specialized depository also provides certificate storage services.
Who uses them?
As customers of depositories can be listed both individuals and legal entities that are owners of securities or simply want to purchase them. The reasons for opening an account may be different. Among them:
- Certificate Storage
- Transfer of securities between accounts in accordance with purchase and sale and gift agreements.
- Send shares and bonds to other depositories and registrars, as well as accept transfers from them.
- For imposing and removing encumbrance on securities, which is pledged.
- Provision of services for crediting income in accordance with available shares and bonds, as well as their receipt.
And this, believe me, is far from the whole list of all operations. So, the depository is a rather useful organization and structure. But is it expensive to use her services?
Tariffs
For the services provided, the depositary receives a fee in the form of commissions. Speaking about the situation as a whole, it should be noted that tariffs for individuals are lower than for organizations. Let's look at the realities of the Russian Federation. Opening an account for an individual is usually free of charge. This is a good tone. But legal entities need to pay several thousand rubles. In addition, they have a rather laborious operation. More precisely, it will be necessary to analyze the package of the constituent document and externally, drawing parallels, we can say that this very much resembles the opening of a current account. The depositories are also very loyal to individuals and in terms of keeping their shares and other issue securities in people's accounts. This is done either completely free of charge, or for a small fee.But legal entities pay a commission, which, as a rule, is fixed and amounts to about 0.1% of the value of securities.
There is a difference when executing a deposit order. So, for an individual, its cost is lower than for a legal entity, one and a half to two times. Also worth mentioning another important point. It does not matter who you turn to — a private or national depository, they all have transactions with securities that have a documentary representation, it is much more expensive than with electronic ones. This is due to the high complexity. Indeed, in this case, it is necessary to verify their authenticity, recount and place in an appropriate safe room. Therefore, we can confidently say that the depository is an organization that is only glad to progress, because it helps to save.
The largest representatives in the Russian Federation
At the moment, more than six hundred organizations have a license of a professional participant in the securities market, which gives the right to carry out direct depositary activity. Among them there are structures that provide loans, serving exchange platforms, investment companies. The specialized depositories mentioned earlier can also monitor the operation of mutual funds and keep records of their activities, as well as non-state pension funds and various management companies. At the same time, the ratings of the most expensive and valuable organizations are compiled based on the market value of the securities that they have in service. You can easily familiarize yourself with them, because they are freely available.
Conclusion
And as a result, we can confidently say that the depository is an indispensable organization for the owner of securities. In the end, I want to give some tips regarding the choice of structure with which to work. Conventionally, it should correspond to such parameters:
- Be reliable. This is determined by the magnitude of financial risks and equity. This information is provided by the National Association of Stock Market Participants.
- The size of the commission. Special care should be taken when the price is too low or too high. It should be remembered that the depository is a special legal entity that will be entrusted with the duty of tracking securities. And his services must be adequately evaluated.
- The range of services provided. Some depositories may only offer stock accounting and custody, investment shares and bonds. Sometimes they can also act as brokers. When choosing, you always need to understand what you want: simple storage or access to the stock market. In the second case, you should additionally read the contract and make sure that it will not be able to perform its own operations when using your funds. Otherwise, the company will have to pay a certain percentage.
In which case there is a central depository that you can turn to with a complaint or for advice.
