What distinguishes the registrar from the depositary

The main registrar from the depositary can be established by studying the Federal Law “On the Securities Market”. At first glance, these entities are engaged in similar activities, which are related to the provision of professional services to shareholders and other securities. But with a more detailed examination it becomes clear that the nature of the services provided by these persons is different, therefore one should speak about their fundamental functional difference. The only similar point is the fact that both subjects are engaged in professional activities, directly interacting with shareholders, other holders of securities.

Depositary activities in the securities market


The named law defines the depositary as a subject implementing depository activity.At the same time, the depository activity itself implies the provision of services related to the storage of securities certificates. Consequently, this market participant stores documents that are direct confirmation of the rights of shareholders and other owners of securities to the relevant assets. In addition, the depositary carries out activities to account for the eligibility of these securities, the transfer of the corresponding rights in certain transactions. Thus, these persons carry out a fairly wide range of activities that directly interact with the securities and their owners.

The activities of the registrar in the securities market


The concept of the functional purpose and role of the registrar in the securities market is also indicated in the cited law. In accordance with its provisions, the registrar, which is also sometimes referred to as the registrar, performs exclusively activities related to the maintenance of the register of owners of securities. Consequently, unlike the depositary, which interacts directly with securities,ensuring their storage, accounting, transfer, the registry holder implements purely technical functions, which imply professional skills in compiling the registry and making changes to it. The activity of these market participants is different in nature, which entails a corresponding difference in functional purpose, which is reflected at the level of federal legislation.


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