Concerning Measures on Formation of an All-Russian
Telecommunications System and Guaranteeing the Rights of
Proprietors in Protection of Securities on the Stock Market
of the Russian Federation
Legislative Act by Russian President Boris Yeltsin
3 July 1995
No 662
For purposes of setting up an
all-Russian telecommunications system to serve federal
agencies of state authority, agencies of state authority of
subjects of the Russian Federation, agencies of local
autonomy and subjects of entrepreneurial operations of all
forms of property, bringing about conditions for operation
of an electronic system for financial settlements, forming
the infrastructure of the stock market of the Russian
Federation, and ensuring protection of the property rights
of securities, I hereby:
1. Do establish that the following are immediate tasks
of state policy in the area of formation of a modern market
structure:
creating organizational-technical conditions and the
technological system of telecommunications service to
federal agencies of state authority, agencies of state
authority of subjects of the Russian Federation, agencies
of local autonomy and subjects of entrepreneurial
operations of all forms of property in effecting financial
settlements and operations on the securities market;
formation of unified standards for carrying out and
recording operations on the financial market of the Russian
Federation, including on the securities market, that
guarantee privacy of business deals, protection of
information, consideration for and security of the rights of
owners, and also state and public enforcement of
antimonopolistic legislation of the Russian Federation;
formation of scientific-production complexes on
developing and producing domestic communications equipment
and systems with the use of the latest advances in science
and world experience;
recruiting Russian and foreign investors in the
creation and development of the all-Russian
telecommunications system;
providing state monitoring of the activity of the all-
Russian telecommunications system.
2. For purposes of protecting the rights of investors,
including shareholders, do acknowledge that in accordance
with legislation of the Russian Federation:
securities being kept in depositaries and depositary-
clearing organizations, as well as at nominal holders,
shall be entered in accounts relating to property of others
separately from the actual holdings of these organizations,
and cannot be included as part of the receivership in
bankruptcy proceedings;
in taxation of securities operations, specialized
depositary and depositary-clearing organizations, as well as
nominal holders of securities, cannot be considered the
owners of the securities of clients, or of the income
accruing from these securities, and accordingly may not be
taxed for operations involving clients' securities, nor for
the profit in the part formed as a result of capital gains
with respect to clients' securities;
specialized depositary and depositary-clearing
organizations, including those that are nominal holders of
securities of their clients, have no right to make deals
with their clients' securities that involve dispossession
and encumbrance with pledges of these securities;
denying a shareholder or his commissioned nominal
securities holder entry in the shareholders' register is
invalid, does not curtail or limit the rights of the
shareholder, and may be appealed by established procedure;
the responsibility for violation of antimonopolistic
laws of the Russian Federation as they relate to
restrictions on the acquisition or ownership of securities
is borne by the owners of these securities. Specialized
depositary and depositary-clearing organizations, as well as
the nominal holders of securities have no right to monitor
observance of antimonopolistic laws of the Russian
Federation by their clients.
3. Do resolve that the Government of the Russian
Federation within a month shall:
provide a schedule of steps on bringing procedures
against the keepers of registers who violate requirements
for maintaining the register of shareholders that are
established by laws of the Russian Federation, including
those who deny to shareholders or to nominal holders of
securities with their power of attorney inclusion in the
register of shareholders;
adjust acts of the Finance Ministry of the Russian
Federation and the State Tax Service of the Russian
Federation to accord with the Law of the RSFSR "Concerning
Tax for Securities Operations" for purposes of precluding
double taxation of the income of investors from capital
gains, and also bearing in mind that the operations of
depositary and depositary-clearing organizations and
nominal holders of securities with respect to safekeeping
of securities, accounting for them and transferring them in
the course of completing securities deals do not incur
property rights in relation to these securities, and cannot
be added to securities operations in accordance with laws
of the Russian Federation concerning taxation of securities
operations.
4. Do uphold the proposal of the State Committee of
the Russian Federation on State Property Management and of
enterprises that develop and produce communications systems
regarding setting up a financial-industrial group: the
Information Technologies Open Joint-Stock Company based on
privatized state enterprises and other organizations to be
listed in an addendum.
Do resolve that the Government of the Russian
Federation within a month shall:
solve in accordance with established procedures the
problems of privatizing the state enterprises listed in the
addendum to this Decree, and incorporating into that
privatization the addition of packages of shares to the
authorized capital of the Information Technologies Company;
approve founding documents of the Information
Technologies Joint-Stock Company and the makeup of its
managerial agencies.
5. Do consent to the proposal made by the Federal
Commission on Securities and the Stock Market affiliated
with the Government of the Russian Federation, the Fund of
Presidential Programs, the Communications Ministry of the
Russian Federation and the Federal Agency of Governmental
Communications and Information affiliated with the President
of the Russian Federation concerning cooperation with
Russian financial and investment institutes in setting up a
Russian Financial and Stock Communications Fund (hereinafter
referred to as the Fund) as a not-for-profit organization
providing telecommunications service to participants in the
financial and stock markets of the Russian Federation.
Do establish that:
the main task of the Fund is to offer communications
services to financial agencies of state authority, agencies
of state authority of subjects of the Russian Federation,
agencies of local autonomy and subjects of entrepreneurial
activity in effecting financial operations, including
monetary settlements for deals, carrying out operations on
the securities market, and also on exchange of information
on conditions of privacy, payment and responsibility to
clients;
monies accruing to the Fund from service to federal
agencies of state authority, agencies of state authority of
subjects of the Russian Federation, agencies of local
autonomy and subjects of entrepreneurial activity shall be
applied to support the tasks of the Fund and develop the
all-Russian telecommunications system.
Do approve the attached makeup of the organizational
committee of the Fund.
Do resolve that the organizational committee shall
within a month hold talks with Russian financial and
investment institutes on their participation in the fund,
prepare and present to the Government of the Russian
Federation a draft of the charter of the Fund.
6. Do resolve that the Government of the Russian
Federation within two months shall:
solve the necessary problems associated with
establishing the Fund and approving its charter;
grant as a founding contribution to the authorized
capital of the Fund the Atlas-2 data transmission system,
site No 10 with building under construction on Vernadskiy
Prospect in the city of Moscow, and the lease rights to
some main and outlying communications networks;
support presentation of proposals by cofounders of the
Fund on setting up a trusteeship for the Fund.
7. Do consent to the proposal made by the Federal
Commission on Securities and the Stock Market affiliated
with the Government of the Russian Federation, the Fund of
Presidential Programs, the Communications Ministry of the
Russian Federation and the Federal Agency of Governmental
Communications and Information affiliated with the President
of the Russian Federation concerning cooperation with
Russian financial and investment institutes in setting up a
Central Fund for Storing and Processing Stock Market
Information (hereinafter termed the Central Fund) as a not-
for-profit organization for accounting and storage of
public information regarding financial operations and
securities deals, as well as copies of regulatory documents
and the mandatory reports of securities issuers.
Do establish that:
the basic tasks of the Central Fund are to ensure
integrity of public information concerning property rights
for securities, volumes and prices of deals on the
securities market, copies of regulatory documents and the
mandatory reports of securities issuers, to offer such
information to federal agencies of state authority, agencies
of state authority of subjects of the Russian Federation
and agencies of local autonomy, and for a fee to subjects
of entrepreneurial operations of all forms of property and
to investors, including for subsequent presentation in a
court of law as proof of property rights, and also to
provide services on keeping securities certificates;
monies accruing to the Central Fund shall be applied
to support the tasks of the Central Fund and develop the
system for accounting and storage of information.
Do resolve that the Government of the Russian
Federation shall solve the necessary problems associated
with establishing the Central Fund and approving its
regulatory documents, as well as contributing the necessary
property to the authorized capital of the Central Fund,
including a switching node under construction in the town of
Dubna, Tula Oblast.
8. Do accept the proposal of the Federal Commission on
Securities and the Stock Market affiliated with the
Government of the Russian Federation concerning cooperation
with interested federal agencies of executive authority and
the agencies of executive authority of subjects of the
Russian Federation in setting up a center for protection of
commercial information whose primary task would be
enforcement of protection of confidential commercial
information being transferred over channels of the Fund, as
well as the integrity and reliability of information
processed and stored in the Central fund.
9. Do resolve to approve operations of the Federal
Commission on Securities and the Stock Market affiliated
with the Government of the Russian Federation concerning
setting up a unified all-Russian system of billing,
clearing and storing securities and recruiting for
participation in the venture Russian and foreign banking
and non-banking organizations, including the Savings Bank
of the Russian Federation.
10. Do resolve that the Government of the Russian
Federation shall route some proceeds of privatized loans of
the International Bank of Reconstruction and Development,
and of the European Bank of Reconstruction and Development
that were offered in 1993 to development of a unified all-
Russian system of settlement, clearing and storage of
securities in the Russian Federation by the Federal
Commission on Securities and the Stock Market affiliated
with the Government of the Russian Federation.
11. Do resolve that the Federal Commission on
Securities and the Stock Market affiliated with the
Government of the Russian Federation shall take steps to
attract funding by international financial organizations
and foreign technical assistance for development of
depositary, depositary-clearing and depositary-accounting
organizations.
Do resolve that the State Committee of the Russian
Federation on management of State Property, and the Russian
Fund of Federal Property shall, by agreement with the
Federal Commission on Securities and the Stock Market
affiliated with the Government of the Russian Federation,
determine within two months a procedure for transferring
shares of joint-stock companies that are in federal
possession into storage in depositary clearing
organizations duly licensed by the Federal Commission on
Securities and the Stock Market affiliated with the
Government of the Russian Federation.
12. Do resolve that the Central Bank of the Russian
Federation shall, at the request of depositary, depositary-
clearing and depositary-accounting organizations, ensure
opening of accounts in billing centers of the Central Bank
of the Russian Federation in accordance with established
procedures.
13. Do establish that monies of the specialized budget
fund for financing development of the securities market set
up by Decree No 478 of the President of the Russian
Federation dating from 11 May 1995 "Concerning Enforcement
of Guaranteed Income to the Federal Budget From Proceeds of
Privatization" shall be managed by the Federal Commission
on Securities and the Stock Market affiliated with the
Government of the Russian Federation in accordance with a
procedure approved by the Federal Commission on Securities
and the Stock Market affiliated with the Government of the
Russian Federation.
14. Do resolve that the Federal Commission on
Securities and the Stock Market affiliated with the
Government of the Russian Federation shall:
within a month approve the content and procedure of
representing and processing public information concerning
deals on the securities market and also, with the
participation of the Central Bank of the Russian
Federation, present the draft of a decree of the President
of the Russian Federation concerning organization of
payments relating to operations on the securities market
with provision for the capability of converting different
currencies in the payment process, and certifying
organizations, including banks, that handle settlements on
the securities market;
in the course of 1995 provide for introducing
identification numbers of securities in accordance with
international standards, and adoption of standard
depositary, depositary-clearing and depositary-accounting
operations.
Do establish that decisions of the Federal Commission
on Securities and the Stock Market affiliated with the
Government of the Russian Federation published within its
purview shall go into effect from the day of their official
publication without further registration.
15. Do resolve that the Ministry of Communications of
the Russian Federation and the Federal Agency of
Governmental Communications and Information affiliated with
the President of the Russian Federation shall allocate the
necessary communications channels in accordance with
established procedures to the Fund, the Central Fund, and
also the Maritime Central Depositary.
Do resolve that the Federal Agency of Governmental
Communications and Information affiliated with the President
of the Russian Federation shall provide service of networks
and lines being transferred to the Fund for a fee on a
temporary basis until 1 January 1997.
16. This Decree goes into effect from the day of its
publication.
President of the Russian Federation Boris Yeltsin
Moscow, the Kremlin
3 July 1995
No 662.
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