The Nasdaq CSD is the “first point of entry” for newly issued securities in the Baltic countries and allows the securities to be processed by book entry (transferred electronically from one investor to another).
In addition to registration services, the Nasdaq CSD provides issuers with corporate actions services, information services (keeping of registers, shareholder information, services to funds, statistics), national numbering agency services, and other services.
The registration of shares at the depository makes a company more transparent. The company thus improves its trustworthiness and gains more opportunities to inform the public, creditors and foreign investors of its existence.
The keeping of a central electronic register has added credibility and transparency to the Baltic business environment. Among other things, it enables company owners, client managers and entitled third parties to easily monitor a company’s leadership structure and any changes via Internet. It also makes it possible to use share pledges as security for loans or other obligations.
Registration of securities ensures the enforceability of shareholders’ ownership rights, a higher degree of circulation safety and greater trust on the part of investors, partners and financial institutions. Registered companies save on costs for the disposal and encumbrance of securities since purchase or sale transactions do not need notarial certification, and managers are no longer obliged to maintain a share register or shareholders list. A fee is charged for maintaining securities in the register.
Payment of the maintenance fee for electronic administration of securities in the central register ensures the ongoing maintenance of data in the register and data provision to entitled persons and authorities.
Registration of a company’s shares in the central register ensures the capture of share ownership. Thus ownership changes – corporate events – must be stated in the register. The company undertakes to notify the Nasdaq CSD of any corporate events it undergoes.