Article 1
This guideline regulates the special regime for handling rights associated with dematerialised securities
(hereinafter the “Special Regime”) in situations when, as a consequence of the suspension of trade settlement
(hereinafter the “Suspension”), concluded on the regulated markets of the Prague Stock Exchange (hereinafter
the “Stock Exchange”) the buying Exchange member (hereinafter the “Buyer”) does not – for reasons on the
side of the selling Exchange member (hereinafter the “Seller”) – acquire the rights or receive the services which
would otherwise be acquired or received if the exchange trade in question had been settled in a due and timely
manner, in accordance with the Settlement System Rules.
Article 2
Rights Associated with Dematerialised Securities
(1) For the purpose of this guideline, rights associated with dematerialised securities mean each and every
right of the owners of dematerialised securities established if the owner of the securities in question was
the owner thereof as of the date on which the right was established (hereinafter the “Right”).
(2) The following rights are subject to the Special Regime:
a) the right to the income from the dematerialised security, including the payment of the registered
reduction of capital,
b) the right to the repayment of the nominal value of bonds,
c) the right to priority subscription to dematerialised securities,
d) the right to the free splitting of dematerialised securities.
Article 3
Conditions for Compensation for Rights
(1) The compensation for rights based on the establishment of a claim for such compensation during the
establishment or existence of the suspension shall be provided by the Central Securities Depository Prague
(hereinafter the “Central Securities Depository”) in accordance with the settlement agreement between
the Prague Stock Exchange and the Central Securities Depository.
(2) The Central Securities Depository shall obtain the data needed for the settlement of compensation for
rights from the information submitted by the issuers or the Stock Exchange, which obtains them from the
issuers, on the basis of the regulations governing the admission of dematerialised securities to the Stock
Exchange’s regulated markets.
(3) Compensation for income requires a written application submitted by the Central Securities Depository
participant representing the Buyer to be delivered to the Central Securities Depository. The application
form can be downloaded from the Central Securities Depository’s website. Applications must be made not
later than 10 business days following the first date of the payment (being granted) of the income.
(4) Applications shall include especially the following:
a) the ISIN of the dematerialised securities,
b) the quantity of the dematerialised securities,
c) the transfer ID,
d) the record date,
e) the settlement date,
f) the payout date,
g) the asset account number;
h) the identifier of the entity in question.
Article 4
Compensation for Financial Income and Instalments of the Bond Nominal Value
(1) The amount of the compensation for income, payment of the share registered capital reduction and the
instalments of the nominal value of bonds (hereinafter the “Income”) corresponds to the amount of the
income paid by the issuers which the Buyer would have obtained if the suspension had not taken place,
multiplied by the quantity of the dematerialised securities not delivered. The same amount is collected from
the Seller.
(2) The Central Securities Depository will transfer the amount of the Income from the Seller or the participant
representing the Seller, reduced by 15%, which corresponds to the standard amount of the withholding tax.
Whether or not the Seller has received any Income, and what withholding tax rate was charged, is not
taken into account. Stock Exchange members shall apply any tax differences against each other upon the
provision of the information concerning the identification of the counterparty by the Central Depository with
the issuer or the payment agent.
(3) The Central Securities Depository shall send the electronic information regarding the acquisition date and
the amount of the compensation for Income to the contact e-mail addresses of the Seller and the Buyer, at
least three days before the financial settlement order is placed with the CERTIS of the Czech National
Bank (hereinafter the “CERTIS”), if the Income is paid in CZK. The financial settlement is executed in
accordance with the Settlement System Rules. The compensation for Income is sent to the profit account
if the Income is paid in CZK. If such an account does not exist, then the payment should be sent to the
basic settlement account. The same account types are used by the Central Securities Depository to collect
the Income compensation.
(4) If the Income is paid in EUR or another foreign currency, the Central Securities Depository will inform the
Seller about the amount of the Income, the payment date and the Buyer’s account number which the Buyer
declared in the application for the compensation for Rights to which the Income is to be transferred. The
Buyer will provide the Central Securities Depository with information regarding the acceptance of the
Income.
(5) The orders under paragraphs 3 and 4 are placed by the dates in which the issuer executes the payment of
the Income.
Article 5
Priority Subscription of Dematerialised Securities
(1) The Central Securities Depository only arranges for the priority subscription to the dematerialised securities
(hereinafter the “Priority Subscription”) upon the written request of the participant representing the
Buyer, delivered to the Central Securities Depository no later than one day prior to the deadline for the
application of the priority subscription. If the Central Securities Depository does not obtain such a written
request by the given deadline, this shall be deemed the expression of the waiver of such a right.
(2) The application pursuant to paragraph 1 shall specify the quantity of the requested dematerialised
securities, which must not exceed the quantity to which the Buyer would have had the right to a priority
subscription if the transaction settlement had not been suspended for reason on the Seller’s side.
(3) The Central Securities Depository shall inform the Seller electronically using the contact e-mail addresses
about the quantity of dematerialised securities which will be requested for submission within the
subscription procedure.
(4) Whether or not the Seller was able to apply for the right to a Priority Subscription is not taken into account.
(5) At the time when, pursuant to the issuer’s information, the newly subscribed dematerialised securities are
credited to the subscribers’ accounts, the Central Securities Depository shall notify the Buyer and the Seller
about the date when the compensation for the right shall be settled. On the specified day, the parties
involved in the transaction are asked to enter an instruction regarding the transfer of the securities against
payment in the Settlement System of the Central Securities Depository. The volume of the transfer
