Process: Interest Payment in cash (INTR) S I P O C Supplier Inputs Process Outputs Clients Offeror Issuing documents Main steps of the process are indicated below: 1. Notification of forthcoming payment; 2. Money transfer. Coupon payments on bonds Issuer Bond’s owners Central Securities Depository Nominees Foreign nominees Process diagram Record date 1. Notification of forthcoming payment Payment date 2. Money transfer These steps are applied for Corporate Actions as follows: : - INTR (Interest payment) Assumptions: Process, described in this document does not include renewal/registered bonds. This process applies to bonds, registered after 2012. Interest Payment in cash-1. Notification of forthcoming payment Date of re-notification 21 days* Record date Payment date 10 days** 1 days* Issuer 1.1 Sending an official notification about planning payment of the yield on bonds (coupon’s interest) W20 Message accepted/ rejected 1.2 Publishing data about corporate action SEN/MR 1.14 Sending interest payment notification to bailiffs (arrested securities) and pledgees - neither Central bank nor NSD’s depositors (paper form, not automated) NSD (CD) W20 Notification about planning payment of the coupon’s interest 1.3 Message acceptance/rejection response sending CANO NSD’s depositor 1.4 Binding Corporate Action ID**** 1.5 Publication in the newsfeed in accordance with issuer's regulations 1.8. Sending renewed notification about upcoming payment of the coupon’s interest 1.6 Sending notification about upcoming payment of the coupon’s interest 1.10. Sending data about upcoming payment to all participants 1.13 Sending notification according to balances (in the case of the new owners) 1 day W20,L20,S15 Notification about upcoming payment of the coupon’s interest 1.7. Cascading notification to depositors W20,L20,S15 W20,L20,S15 Notification about upcoming payment of the coupon’s interest Notification about upcoming payment of the coupon’s interest 1.9. Cascading notification to depositors W20,L20,S15 1.11 Cascading notification to depositors Notification about upcoming payment with calculation*** CANO/MT564 CANO/MT564 (*) – Dates specified in accordance with the Rules of implementation of NSD tax procedures (**) – Dates specified on the basis of the analysis of foreign practice (***) – The notification contains a request for disclosure of tax information for foreign nominees (****) – Corporate Action ID already exists in the system ( created automatically for all coupon payments after security’s access to service ) 1.15 Sending interest payment notification to pledgees (NSD’s depositors or Central bank) in format CANO/ MT564,MT568 CANO/MT564 CAPA/MT564 1.16 Cascading notification to depositors 2 Interest Payment in cash -2. Money transfer Record date RD= PD-1 2 Payment date (PD) End date of the disclosure of tax information = PD+5 PD+3 2.7 Providing a report on the website of the Issuer on the full or partial payment of cash 2.1 Money transfer Issuer Record date RD= PD-1 Client bank E-docflow NSD Money Money transfer confirmation 2.18 Sending confirmation of conducted CA NSD Format PD+5 Client bank If paid amount is more Money NSD (CD) E-docflow NSD Money transfer confirmation NSD Format 2.3 Transfer of excessive amounts 2.2 Checking that the paid amount is not more than the amount of funds needed for the transfer to depositors 2.4 Checking that the payout may be in divided proportionally between depositors If paid amount is not more 2.5 Transfer of the entire amount of the Issuer NO Calculation to whole cents? 2.6 Publishing data about getting the money (Interfax) YES 2.8 Tax calculation and withholding (for individuals, nonresident legal entities and foreign nominees) W20,L20 2.11 Transfer withheld tax for foreign nominees to budget 2.9 Transfer clear from tax amount of money 2.14 Additional charge unnecessarily withheld funds Confirmation of conducted CA 1 month YES YES Payment with a withholding tax? NO 2.10 The transfer of funds without taxes 2.12 Recalculation of tax payments to foreign nominee’s customers NO Client bank 2.13 The requirement to foreign nominees to return overpaid money Money 2.16 Transfer withheld tax for foreign nominees to budget 2.17 Transfer withheld tax(for individuals, non-resident legal entities and foreign nominees) to budget 1 month 2.19 Sending confirmation of conducted CA to depositors 2.20 Publication information about conducted CA in the newsfeed CAPS Information on a Web-site 1 month YES PD+5 Foreign nominee Client bank E-docflow NSD Money Money transfer confirmation * W20, L20, S15 Did foreign nominee disclose customer data? The requirement for money refund 2.15 Returning overpaid money Client bank E-docflow NSD W20,L20, S15 Additional money Money transfer confirmation Confirmation of conducted CA 2.21 Sending confirmation of conducted CA to depositors NSD Format NSD Format CANA/MT568 CAPS/MT567 PD+5 NSD’s depositor Bond’s owner Client bank E-docflow NSD W20, L20, S15 Money Money transfer confirmation * Confirmation of conducted CA 2.22 Sending confirmation of conducted CA to depositors NSD Format CAPS/MT567 PD+1 Nominee and custodian Client bank E-docflow NSD Money Money transfer confirmation * W20, L20, S15 2.18 Tax calculation and withholding for depositors 2.19 The transfer of funds to the owners 2.20 Transfer withheld tax to budget Confirmation of conducted CA NSD Format 1 month (*) – Notification of payment contains information about whether fully paid cash or partial CAPS/MT567 2.23 Sending confirmation of conducted CA to depositors Legend Diagram objects: Process Channel/Format - Process - Process execution deadline Process step Role 1.1 Step - Description of an action Message - Participant’s role Format 1 - Link between steps of the process that spans over several worksheets 1 day - Channel and format of information transfer - Business message used in the process - Message format according to ISO15/ 20022 - Process step duration Duration presumed by Russian legislation Information distribution channels and message formats Message formats L20 – ISO-20022 message via «Louch» software W20 – ISO-20022 message via Web-client S15 – ISO-15022 message over SWIFT SF – message over SWIFT Fileact ND – Format not controlled by NSD TBD – format and channel are to be defined later MT564, MT565, MT567, MT568 - ISO 15022 message SEN - ISO 20022 message (System Event Notification) MR - ISO 20022 message (Message Reject) CANO - ISO 20022 message (CorporateActionNotificationV05) CAPA – ISO 20022 message (CorporateActionMovementPreliminaryAdviceV05) CAPS – ISO 20022 message (CorporateActionEventProcessingStatusAdviceV04) Partad – PARTAD message format: SETTLEMENT_TRANSACTION_STATUS_ADVICE – Transaction confirmation REPORT_OF_UNCONFIRMED_TRANSACTION – Transaction message for reconciliation (Reconciliation request)
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