[Title edited for clarity - moderator oldcomputerguy]
Hi there,
I am an infrequent but longtime lurker that has a question regarding a DR I have held (not by choice, at least the hold part) since 2014. I've long given up all but a speck of hope that I'll ever get my money back on this, but I got notified of a corporate action and was curious what the hell this all means. Before I paste the text of the action, here is the quick and dirty of the situation.
In 2014 I purchased some shares / DR of MBT, Mobile Telesystems, a Russian telecom company. At some point because of the deteriorating situation / relations sanctions were enacted and I couldn't do anything with the shares, i.e. recoup a red cent (pun possibly intended).
I'm just a regular dude who branched into some individual positions years ago who wishes he never dabbled in Russian stock. I'm not a lawyer nor a financial expert who can parse most of what this legalese is saying. It appears to me that it's saying unless you are a local Russian with a Russian stock exchange account, you're still effed.
Can anyone explain this for a relative dummy and also, let's say peace descended on the realm in the future, is there any chance JP Morgan makes this whole in some way at some point by allowing trades or are my DR's getting canceled regardless and this is Last Chance Saloon and the bar is out of whiskey?
Final note - hundreds of thousands of people have and are suffering due to that war. I know that, and it's not lost on me. This is nothing in the grand scheme of things. I'm just curious for the most part at this point, how all this is handled, when large-scale world events occur.
Thanks
******************************************************************************************
Offer terms
Latest update
09/10/2024 5:18 PM ET
Although the United States Department of Treasury's Office of Foreign Asset
Control's (OFAC) declaration of Russia's National Securities Depository (NSD)
as a Specially Designated National (SDN) has made the cancellation of
depositary receipts (DRs) in Russian securities difficult, JPM, the
depository for Mobile Telesystems Depository Receipts (DR) Program, has
provided notice that it will allow the cancellation of Russian-security DRs
under certain conditions consistent with OFAC General License 100A.
Because General License 100A is expected to expire on October 11, 2024, JPM
will likely close the books on this DR cancellation program on October 1,
2024.
Please note:
Requests for these conversions will result in assets being held with a broker
or agent who is not in Fidelity's National Financial Services LLC's (NFS)
custody chain and for which NFS shall have no custodial responsibility. The
conversion of these DRs is a two-step process whereby DR shares will be
delivered by NFS to the DR agent in the US, after which the underlying shares
will be delivered pursuant to the instructions provided by the beneficial
holder in Russia. If the Depositary Agent accepts a conversion request, NFS
will no longer be the custodian of the DRs, and NFS will also not be the
custodian for the ordinary shares.
To take advantage of JPM's open books for cancellation, any holder requesting
cancellation must have a local Russian account that is fully established, or an
account with a foreign broker or custodian that has a securities account of a
foreign nominee holder with a Russian custodian. NFS cannot open accounts to
hold Russian ordinary shares on behalf of owners and beneficial owners of
Russian-security DR cancellations.
NFS will initiate a DR cancellation request with a Depository Agent on behalf
of a party who holds Mobile Telesystems DRs, only if all of the following
conditions are met in advance:
The cancelling party must affirm that the transaction meets the divestiture
requirements set forth in OFAC's General License 100, and neither the security
nor the sending or receiving party can be subject to OFAC blocking sanctions
or restrictions that preclude the transaction;
The holder must certify that there is no change to beneficial ownership
resulting from the surrender of Depository Receipts and the receipt of
underlying shares;
The holder must ensure that the local custodian has the correct receive
instructions in place to accept any ordinary shares on their behalf, and must
provide NFS with valid and complete settlement instructions for the receipt of
ordinary shares;
The DRs submitted for voluntary cancellation cannot have been exchanged for
ordinary shares under Russian Federal Law No 114-FZ with respect to Forced
Conversion;
The DR holders must also pay the Depository Agent a cable fee of $15.00
and a cancellation fee of $0.05 per Depositary Receipt surrendered.
As set forth below, holders will be required to provide attestations and
information regarding the above conditions.
Any transactions under the DR cancellation program that have not settled within
10 days of surrendering the DRs to JPM will themselves be cancelled, which will
result in the DRs being returned to the originating party.
All cancellation requests will be processed on a best-efforts basis and under
time restrictions. Therefore, please allow sufficient time to complete the
transaction. Moreover, JPM may, in its sole and absolute discretion, close its
books for this program at any time, without advance notice, and could do so
given the fluidity of circumstances impacting the Russian DR programs.
All holders requesting a DR cancellation do so at their own risk. NFS cannot
guarantee the delivery of ordinary shares. NFS cannot guarantee the receipt of
the underlying shares, recovery of the shares, or refunding of any fees. NFS's
assistance with the delivery of the ordinary shares in the local market will be
limited due to the delivery being facilitated away from NFS.
All holders requesting to cancel their DRs must provide NFS with the following:
Competed JPM Attestation Form
Completed Fidelity Like-Registration/Same-Name Transaction Form
Russian Account Statement (English Translation)
Further information relating to JPM's DR Program can be found at:
www.https://www.adr.com/drprofile/607409109
Hi there,
I am an infrequent but longtime lurker that has a question regarding a DR I have held (not by choice, at least the hold part) since 2014. I've long given up all but a speck of hope that I'll ever get my money back on this, but I got notified of a corporate action and was curious what the hell this all means. Before I paste the text of the action, here is the quick and dirty of the situation.
In 2014 I purchased some shares / DR of MBT, Mobile Telesystems, a Russian telecom company. At some point because of the deteriorating situation / relations sanctions were enacted and I couldn't do anything with the shares, i.e. recoup a red cent (pun possibly intended).
I'm just a regular dude who branched into some individual positions years ago who wishes he never dabbled in Russian stock. I'm not a lawyer nor a financial expert who can parse most of what this legalese is saying. It appears to me that it's saying unless you are a local Russian with a Russian stock exchange account, you're still effed.
Can anyone explain this for a relative dummy and also, let's say peace descended on the realm in the future, is there any chance JP Morgan makes this whole in some way at some point by allowing trades or are my DR's getting canceled regardless and this is Last Chance Saloon and the bar is out of whiskey?
Final note - hundreds of thousands of people have and are suffering due to that war. I know that, and it's not lost on me. This is nothing in the grand scheme of things. I'm just curious for the most part at this point, how all this is handled, when large-scale world events occur.
Thanks
******************************************************************************************
Offer terms
Latest update
09/10/2024 5:18 PM ET
Although the United States Department of Treasury's Office of Foreign Asset
Control's (OFAC) declaration of Russia's National Securities Depository (NSD)
as a Specially Designated National (SDN) has made the cancellation of
depositary receipts (DRs) in Russian securities difficult, JPM, the
depository for Mobile Telesystems Depository Receipts (DR) Program, has
provided notice that it will allow the cancellation of Russian-security DRs
under certain conditions consistent with OFAC General License 100A.
Because General License 100A is expected to expire on October 11, 2024, JPM
will likely close the books on this DR cancellation program on October 1,
2024.
Please note:
Requests for these conversions will result in assets being held with a broker
or agent who is not in Fidelity's National Financial Services LLC's (NFS)
custody chain and for which NFS shall have no custodial responsibility. The
conversion of these DRs is a two-step process whereby DR shares will be
delivered by NFS to the DR agent in the US, after which the underlying shares
will be delivered pursuant to the instructions provided by the beneficial
holder in Russia. If the Depositary Agent accepts a conversion request, NFS
will no longer be the custodian of the DRs, and NFS will also not be the
custodian for the ordinary shares.
To take advantage of JPM's open books for cancellation, any holder requesting
cancellation must have a local Russian account that is fully established, or an
account with a foreign broker or custodian that has a securities account of a
foreign nominee holder with a Russian custodian. NFS cannot open accounts to
hold Russian ordinary shares on behalf of owners and beneficial owners of
Russian-security DR cancellations.
NFS will initiate a DR cancellation request with a Depository Agent on behalf
of a party who holds Mobile Telesystems DRs, only if all of the following
conditions are met in advance:
The cancelling party must affirm that the transaction meets the divestiture
requirements set forth in OFAC's General License 100, and neither the security
nor the sending or receiving party can be subject to OFAC blocking sanctions
or restrictions that preclude the transaction;
The holder must certify that there is no change to beneficial ownership
resulting from the surrender of Depository Receipts and the receipt of
underlying shares;
The holder must ensure that the local custodian has the correct receive
instructions in place to accept any ordinary shares on their behalf, and must
provide NFS with valid and complete settlement instructions for the receipt of
ordinary shares;
The DRs submitted for voluntary cancellation cannot have been exchanged for
ordinary shares under Russian Federal Law No 114-FZ with respect to Forced
Conversion;
The DR holders must also pay the Depository Agent a cable fee of $15.00
and a cancellation fee of $0.05 per Depositary Receipt surrendered.
As set forth below, holders will be required to provide attestations and
information regarding the above conditions.
Any transactions under the DR cancellation program that have not settled within
10 days of surrendering the DRs to JPM will themselves be cancelled, which will
result in the DRs being returned to the originating party.
All cancellation requests will be processed on a best-efforts basis and under
time restrictions. Therefore, please allow sufficient time to complete the
transaction. Moreover, JPM may, in its sole and absolute discretion, close its
books for this program at any time, without advance notice, and could do so
given the fluidity of circumstances impacting the Russian DR programs.
All holders requesting a DR cancellation do so at their own risk. NFS cannot
guarantee the delivery of ordinary shares. NFS cannot guarantee the receipt of
the underlying shares, recovery of the shares, or refunding of any fees. NFS's
assistance with the delivery of the ordinary shares in the local market will be
limited due to the delivery being facilitated away from NFS.
All holders requesting to cancel their DRs must provide NFS with the following:
Competed JPM Attestation Form
Completed Fidelity Like-Registration/Same-Name Transaction Form
Russian Account Statement (English Translation)
Further information relating to JPM's DR Program can be found at:
www.https://www.adr.com/drprofile/607409109
Statistics: Posted by Takeahnase — Wed Sep 11, 2024 12:52 pm — Replies 2 — Views 193