The Procedure actually establishes technical procedures of redenomination of the nominal value of Financial Instruments, which are applicable to the CSDL and managers of Financial Instruments accounts (hereinafter, the Accounts Managers). However, provisions on halting of operations are also important to the issuers and holders of Financial Instruments:
- The Procedure provides for the period of halting operations, which will continue from 30 December 2014 to 1 January 2015 (hereinafter, the Period of Operations Halt), during which any operations with the Financial Instruments indicated in item (ii) above will be halted in general Financial Instruments accounts opened in the name of Account Managers and their clients in the CSDL system.
- For this reason it is recommended that Account Managers (and owners of Financial Instruments accordingly) should not make any orders to the CSDL system regarding delivery-versus-payment or free-of-payment transfers of the Financial Instruments indicated in item (ii) above with the settlement date falling within the Period of Operations Halt, as well as orders regarding delivery-versus-payment transfers of the Financial Instruments indicated in item (i) above with settlement in litas and the settlement date on 2 January 2015 or later.
Associate attorney-at-law Mantas Gofmanas from TGS Baltic warns that orders made by Account Managers during the Period of Operations Halt to transfer the above-mentioned Financial Instruments will be deemed invalid and will be rejected.
“Therefore, in case of a need to fulfil orders regarding Financial Instruments at the end of December 2014, it is necessary to make sure that the operations and their fulfilment dates are not within the Period of Operations Halt”, associate attorney-at-law Mantas Gofmanas says.