Process: Interest Payment in cash (INTR)

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)