On revocation of licences of securities market professional member

The Bank of Russia took a decision to revoke depositary, broker, dealer and securities management licences issued to the professional member of the securities market Depo-Line LLC (referred to as ‘Company’ hereinafter).

The depositary licence of the Company is terminated on 1 August 2014.

The Company shall stop opening depo accounts and nominal securities holding from 20 June 2014, provide its clients with a possibility to transfer the securities to the customer accounts in the securities owners register or to depo accounts in depositaries till 1 August 2014, provide the fulfillment of requirements of Item 3.10 of the Regulation on licence requirements and conditions for professional activities in the securities market approved by Order of the FSSM of Russia No. 10-49/pz-n, dated 20 July 2010, Section II of the Regulation on procedure for termination of functions of nominal securities holder approved by the Regulation of FSSM of Russia No. 46, dated 10 November 1998.

The grounds to take such decisions were repeated annual violations of Russian securities legislation including violations of federal authority regulations governing the securities market, namely:

Company failed to provide the Bank of Russia with a possibility to exercise supervisory powers;

Company did not get a hold of the mail correspondence sent to its legal address;

Company failed to provide form No. 1100 report of the professional securities market member ‘Quarterly report of the securities marker professional member’ to the Bank of Russia;

Company did not provide its ownership chart to the Bank of Russia;

Company did not provide its equity capital calculations to the Bank of Russia;

Company’s web-site lacks disclosed information on equity capital calculations over the 2014 reporting timeframe.

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20.06.2014 00.00.00