The Nasdaq CSD offers a neutral and safe register maintenance service also for non-listed joint stock companies in Latvia.
On behalf of the company, Nasdaq CSD maintains a register in a separate system and makes entries in the register as per agreement between the Nasdaq CSD and the company. The Nasdaq CSD would issue to the shareholder an excerpt from the shareholder register as a proof to his/her title.
When shares change hands, their re-registration in the Nasdaq CSD system requires the submission by the issuer or the shareholders of a paper-based re-registration order, signed by hand or electronic signature.
Once it has validated the documents submitted, the Nasdaq CSD executes re-registration of shares in the issuer’s shareholder register.
There are three different options how a shareholder register is maintained:
- With inspection of the source documents (an agreement signed by the parties or a certification signed by the buying and selling party confirming the fact of the deal (where the parties do not wish to disclose the price). The counterparties have to arrive at the LCD in person and produce valid passports, source document (and a letter of attorney certified by a notary public in case of an authorized representative). Upon a request from the buyer, the LCD issues a certification about the transaction.
- Without inspection of the source documents – shares are transferred on the basis of an application from the company management board and the transfer instruction, however, without inspecting the source documents.
- With inspection of the source documents, but without checking the identity of persons. Shareholders go to their company which ascertains their identity. The company sends the LCD the source documents and a certification that the true identity of the persons has been established on the basis of valid passports and the signatures on the agreements are authentic.
Nasdaq CSD guarantees confidentiality and disclosing of any information exclusively to the persons stipulated in the agreement.