korea securities depository
DESCRIPTION
KSD's Role in the Issuer's Corporate Actions in Korean Securities Market. October, 2009. Korea Securities Depository. Contents. About KSD Scope of Business Corporate Action in Korea. Established in 1974 Sole CSD in Korea under the related law - PowerPoint PPT PresentationTRANSCRIPT
Korea Securities DepositoryKorea Securities DepositoryKorea Securities DepositoryKorea Securities Depository
October, 2009October, 2009
ContentsContents
1. About KSD2. Scope of Business3. Corporate Action in Korea
• Established in 1974
• Sole CSD in Korea under the related law
• Member of ACG (Asia Pacific Central
Securities Depository Group)
• Special membership of AECSD
1. About KSD1. About KSD 1. About KSD1. About KSD
ContentsContents
1. About KSD2. Scope of Business3. Corporate Action in Korea
• Deposit & Settlement
• Entitlements processing
• Transfer agent / Bond Registrar
• Value added business– International services
– Securities Lending & Borrowing (SLB)
– Fund Net Service
2. Scope of Business2. Scope of Business 2. Scope of Business2. Scope of Business
Scope of Business of KSDScope of Business of KSD
Training ProgramTraining Programw/ KOICAw/ KOICA
200 people Invited from 10 countries
KSD provides Consulting ServiceKSD provides Consulting Service
Expert DispatchExpert Dispatch
System System ImplementationImplementation
KSD KSD FoundationFoundation
dispatch experts for on-site consultationdispatch experts for on-site consultation
SLB/Repo, Fund Settlement Systeme.g. SLB implementation to Thailand
Established in 2009 Education of finance and EconomicsSupport facilities and Equipment
ContentsContents
1. about KSD2. Scope of Business3. Corporate Action in Korea
2020
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
Beneficial Beneficial Owner systemOwner system
AdvantageAdvantage
One ExampleOne Example
Beneficial OwnerBeneficial Owner The people whose shares are deposited iThe people whose shares are deposited in CSD n CSD and registered in CSD’s nameand registered in CSD’s name.
What is Beneficial owner system?What is Beneficial owner system?
2121
AdvantageAdvantage
One ExampleOne Example
Beneficial Beneficial Owner systemOwner system
Beneficial Beneficial OwnerOwner
1.1. One part of the securities depository One part of the securities depository system system
2.2. allows the beneficial owners to allows the beneficial owners to have the status of shareholdershave the status of shareholders
3.3. allows exercise their right against allows exercise their right against the issuerthe issuer
Beneficial OwnerBeneficial Owner SystemSystem
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
What is Beneficial owner system?What is Beneficial owner system?
A Part of the securities depository systemA Part of the securities depository system
Central Securities Depository
Stock custody Shareholder’s rights
Account book
Stock Trades
Account book
Depository System
Book-entry system
Beneficial owner system
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
Operational structureOperational structure
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
CSD Issuer
Registration
in the name of CSD
Exercise of rights
for deposited shares
Secondary
MarketEfficient Settlement
Enforced Liquidity
2121
AdvantageAdvantage
One ExampleOne Example
Beneficial Beneficial OwnerOwner
AdvantageAdvantage
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
What is Beneficial owner system?What is Beneficial owner system?
Beneficial Beneficial Owner SystemOwner System
Simplify the complicate procedure Simplify the complicate procedure between CSD and issuerbetween CSD and issuer
2424
BeforeBefore AfterAfter
Participant A
Participant B
Participant C
Issuing Co. A(Transfer agent)
Issuing Co. B(Transfer agent)
Issuing Co. C(Transfer agent)
Issuing Co. A(Transfer agent)
Issuing Co. B(Transfer agent)
Issuing Co. C(Transfer agent)
Participant A
Participant B
Participant C
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
Simplify the complicate procedureSimplify the complicate procedureSimplify the complicate procedureSimplify the complicate procedure
2121
AdvantageAdvantage
One ExampleOne Example
Beneficial Beneficial OwnerOwner
One ExampleOne Example
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
What is Beneficial owner system?What is Beneficial owner system?
Beneficial Beneficial Owner SystemOwner System
Rights Exercising (Cash Dividends)Rights Exercising (Cash Dividends)
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
Submitting the Submitting the statement(D+3)statement(D+3)
Beneficial Owners’Statement
Notification of Notification of the record date or the record date or the closing periodthe closing period
Request for beneficial Request for beneficial owners’ statementowners’ statement
Beneficial Owners’Book
Notification of the final Notification of the final statement(D+6)statement(D+6)
Notification of rightsNotification of rights - Corporate actions- Corporate actions
Clients
Participants
Issuing Co.
KSD
2626
Closing the shareholders’ bookClosing the shareholders’ book
Corporate Actions in Korean Securities MarketCorporate Actions in Korean Securities Market
Fixing the statementOf dividend payment
Notification of Notification of dividend payment dividend payment schedule and schedule and dividend noticedividend notice
Notification of Notification of the final statementthe final statement
’ ’ Notification ofNotification of dividend noticedividend notice
Receiving Receiving cash dividendscash dividends
Payment of Payment of cash dividendscash dividends
Crediting Crediting the cash dividends the cash dividends to the accountsto the accounts
Participants
Beneficial Owners Issuing Co.
3232
Rights Exercising : Cash DividendsRights Exercising : Cash DividendsRights Exercising : Cash DividendsRights Exercising : Cash Dividends
International Relations & Planning Team International Relations & Planning Team Korea Securities Depository Korea Securities Depository Tel : 82-2-3774-3445Tel : 82-2-3774-3445E-mail : [email protected] E-mail : [email protected]
International Relations & Planning Team International Relations & Planning Team Korea Securities Depository Korea Securities Depository Tel : 82-2-3774-3445Tel : 82-2-3774-3445E-mail : [email protected] E-mail : [email protected]