Rada passes at second bill on 'nominal holder'
Ukraine's Verkhovna Rada has passed at second reading bill No. 6141 amending some Ukrainian laws regarding promotion of attraction of foreign investment that will introduce the nominal holder institute to the depository system of Ukraine.
The bill with remarks was backed at second reading from the second attempt by 244 lawmakers on Tuesday, an Interfax-Ukraine correspondent reported.
"The project envisages the introduction of the institution of an independent financial intermediary, nominal holder and global custodian in Ukraine... The adoption of the project will allow foreign investors with fewer bureaucratic procedures and with greater confidence to invest in securities – government domestic loan bonds, shares of Ukrainian issuers, loan securities and other securities," Head of the subcommittee on securities and the stock market of the Verkhovna Rada committee on the financial policy and banking activities Pavlo Rizanenko said, introducing the bill in parliament.
He also said that the second reading of the bill improved the issue of financial monitoring, simplified the identification and verification of the nominal holder and his or her clients.
"The issue of preventing the opening of an account in securities of a nominal holder - a foreign financial institution created under the legislation of the aggressor country. It is also foreseen that the person who has been sanctioned in accordance with the law on sanctions cannot be a client of the nominal holder," he said.
Earlier, the National Depository of Ukraine (NDU, the central depository) predicted that the adoption of this bill will increase the share of foreign capital up to 30% from almost nil.