Nasdaq CSD is the “first point of entry” for newly issued securities in Estonia, Iceland, Latvia and Lithuania and allows securities to be processed by book entry (transferred electronically from one investor to another).
In addition to registration services, Nasdaq CSD provides issuers with corporate actions services, information services (keeping of registers, shareholder information, services to funds, statistics), national numbering agency services, and more.
Registration of shares at Nasdaq CSD increases company’s transparency, improves its trustworthiness and provides with more opportunities to promote the company to the public, creditors and foreign investors. The centralized electronic register enables company owners, managers and entitled third parties to easily monitor a company’s ownership structure and any changes thereto. It also makes the securities available for pledging as security for loans or other obligations.
Registration of securities ensures the enforceability of shareholders’ ownership rights, a higher degree of circulation safety and greater trust by investors, partners and financial institutions. Companies with registered securities at Nasdaq CSD can save on costs for the disposal and encumbrance of securities since purchase or sale transactions do not need notarial certification, and management of the company is no longer obliged to maintain a share register or shareholders list.
A fee is charged for maintaining securities in the register. Payment of the maintenance fee for electronic administration of securities in the central register provided by Nasdaq CSD enables ongoing maintenance and servicing of data in the register to ensure its integrity and accessibility.