Russian Depositary Receipts (RDRs)

Listing of RDR

A Russian Depositary Receipt (RDR) is a registered uncertificated security that:

  • does not have a par value;
  • confers ownership rights to a certain number of shares or bonds of a foreign issuer (underlying securities);
  • carries the RDR holder's right to receive from the RDRs issuer the relevant number of underlying securities in exchange for the depositary receipts and to be provided with services in relation to the exercise of rights attached to the underlying securities by the RDR holder.

RDRs on foreign securities can be issued via:

  • state registration of RDR issue in the Bank of Russia;
  • stock exchange assigning identification number to the RDR issue, i.e. issue of exchange-traded RDRs.

RDRs of the same issue can confer ownership rights to underlying securities of only one foreign issuer and only of one kind (category, type).

Entities taking part in RDRs issuance:

RDR issuer means a depository that was set up in accordance with the Russian law and meets the requirements established in regulatory acts of the Bank of Russia regarding the equity capital size and has at least three years of depository activity.

Issuer of the underlying securities means a legal entity incorporated under the laws of a foreign jurisdiction.

The issuer of underlying securities must assume obligations to RDR holders that are provided for in the Agreement signed with the issuing depository. The Agreement constitutes an integral part of the issuance decision. The requirement to assume such obligations does not apply only if the underlying securities have been listed on a foreign stock exchange included onto the list approved by the Bank of Russia

RDR register holder means either the depository that issued the RDRs, or a registrar (a specialized company that records and maintains the RDR holder register based on the issuer's instruction).

Custodian means a foreign registrar/ depository that keeps records of ownership rights to the securities represented by RDRs and is included onto the list approved by the Bank of Russia.

Russian Depositary Receipts issuance scheme