As Hungary’s central depository, in addition its legally defined roles KELER provides a complete set of services to its issuer clients from the issuance of securities to the management of corporate actions. With its services – detailed in the following – KELER aims to simplify a complex issuance procedure of securities:

International Securities Identification Number (ISIN) issuance

All securities series, either physical or dematerialized, must be registered with an ISIN. In Hungary KELER as the central depository acts as national code issuer in respect of ISIN issuance and registration. KELER’s eISIN platform enables market participants to apply for an ISIN electronically.

Maintenance of Securities Central Register

As the central register of securities, KELER maintains the data of securities generated as dematerialized or physical securities, data related to ISINs and the list of securities cancelled or declared void.

Creation, administration or cancellation of dematerialized securities

As central depository, KELER has a primary responsibility to issue and manage dematerialized securities in Hungary. Creation, administration or cancellation of dematerialized securities happen in line with contracts concluded with and instructions given by issuers.

Managing Corporate Actions

Upon specific request of the issuer, KELER co-operates in the execution of corporate actions of securities in KELER’s custody.

Maintenance of Share Registry

Upon individual agreement KELER offers share registry maintenance services including the following:

  • continuous maintenance of the share registry,

  • processing the data of shareholder registration,

  • registering non-marketable equities (cancelled or declared void),

  • relationship management with notary publics, custodians, other account holders,

  • issuing extract from the share registry to shareholders,

  • preparing ownership structure,

  • forwarding mails to shareholders,

  • providing client relations services.

Dividend payments

Upon instructions of a paying agent, KELER effects dividend payments and in relation to that it offers:

  • co-operation in finalizing dividend payment notice wordings,

  • communication with custodians and account keeping institutions,

  • calculation of gross dividend, applicable rates and taxes (tax, health contribution) and net dividend by shareholder based on the information available,

  • transferring the calculated net dividend to the shareholder directly or indirectly through the account holder of the shareholder,

  • providing the account holder institutions with a list of transferred payments initiated by the issuers to their securities accounts,

  • preparing and forwarding tax certificates to shareholders,

  • support to issuers in meeting their dividend payment related reporting obligation by preparing and providing detailed analytics on dividend paid in the current month,

  • making supplementary payments.

Organising general meetings

KELER also provides a full set of services in terms of general meetings: assistance in preparation for general meetings or complete organization of general meetings from providing registration and voting equipment through the execution of voting to the supply of projectors and displays for the event.

Acceptance and management of physical securities

KELER provides two options for the management of physical securities:

  • Collective custody of physical securities: accepting physical securities with blank endorsement for fungible custody. In this case the depositor has a right to claim the securities deposited by basic denomination instead of by serial number.
  • Individual custody of physical securities: accepting physical securities as individual deposit. Depositors are returned the securities with the same serial numbers as depositied.

Keeping issuers informed, providing advisory services upon request.