State Securities Commission Of Ukraine Approves Creation Of A United Depositary Institution

The State Securities Commission of Ukraine has approved the creation of a united depository institution on the basis of National Depository (NDU) and the Depository MFS (Inter Regional Securities Union). NDU proposed a number of alternatives, all of them assuming

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The State Securities Commission of Ukraine has approved the creation of a united depository institution on the basis of National Depository (NDU) and the Depository MFS (Inter-Regional Securities Union). NDU proposed a number of alternatives, all of them assuming governmental control of the new depository.

The MFS representatives think that the state share should be established at the level of 25 percent and that it is necessary to take into account the assets of the companies and not the volume of statutory funds at the merger. Market forces seem to want a merger based on the MFS.

The State Securities Commission has recommended MFS and NDU to determine possibilities of a merger within a two months period. The merger is possible only after the receipt of the agreement from the shareholders of two depositories. It is not yet clear on the basis of which depository a new depository will be created.

“NDU is an “empty organisation”, and MFS is an all-sufficient organisation which executes the majority of transactions in the market” said the Chairman,” says the Chairman of the investment company Concorde Capital.

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