Securities transactions can be attractive to private investors. Bonds are financial instruments that, in some cases, require special knowledge about the securities market to acquire and dispose of. Therefore, we recommend using the services of an experienced legal representative when purchasing and disposing of bonds. This will secure your investments and allow you to receive a guaranteed income.
What are bonds?
Bonds are classified as equity securities. This means that the bonds are placed in issues, have equal volume and terms of exercise of rights within one issue, regardless of the time of purchase of the bond.
Who are the issuers?
The bonds are issued by issuers. These are Belarusian or foreign companies that issue securities and, on their behalf, bear obligations to bondholders to exercise the rights certified by the bonds.
What opportunities do bonds offer?
The bond entitles its holder to receive the nominal value of the bond or other equivalent from the issuer of the bond within the period specified in the bond.
A bond may give its owner the right to receive a certain percentage of its value or other property rights.
The income from a bond is the interest and/or discount and/or other type of income that is indicated in the bond issue prospectus.
Peculiarities of representing the interests of private clients in the purchase and sale of bonds
In Belarus, representing the interests of private clients in the purchase and sale of bonds may be associated with a number of features::
- Legal aspect: Lawyers help clients understand the legal aspects of bond transactions, including the legislation, rules and requirements governing this type of transaction.
- Documentation: The execution of transactions with bonds includes various documents such as contracts, prospectuses and other legally significant documents. Lawyers help clients to properly analyze and issue this documentation.
- Protection of rights and interests: In case of disputes or unforeseen circumstances, lawyers represent the interests of clients, defending their rights in court or counter-negotiations.
- Tax and financial aspects: When buying and selling bonds, it is important to take into account tax and financial aspects. Lawyers help clients to understand this situation and formulate their requirements in accordance with the law.
- Regulation: Bond transactions may be subject to regulation by financial and market authorities. Lawyers help clients comply with regulatory requirements and represent their interests in the regulatory process.
Thus, representing the interests of private clients in the purchase and sale of bonds in Belarus requires in-depth knowledge of the financial and legal field in order to provide clients with protection and effective management of their interests. Our lawyers have such knowledge and are ready to represent your interests in matters related to bonds.
Who is the representative of the bondholders?
The representative of the bondholders acts on behalf of and in the interests of the bondholders. The bond issuer has the right to appoint a representative of the owners. Belarusian legislation establishes cases when the bond issuer is obliged to appoint a representative of the bondholders before approving the bond issue prospectus:
- When non-resident issuers place bonds in Belarus;
- When the issue of bonds meets all the criteria:
- The fulfillment of the issuer’s obligations is secured by a pledge of real estate;
- The total amount of the issuer’s obligations secured by real estate collateral exceeds 50% of the estimated value of this property;
- Bondholders are an unlimited number of people.
In other cases, a representative of the bondholders may be appointed or elected by the general meeting both before the approval of the bond issue prospectus and after the registration of the bond issue.
A contract is concluded with a representative of the bondholders and information about it is indicated in the bond issue prospectus.
Who can be the representative of the bondholders?
A representative of the bondholders can be appointed or selected:
- A professional participant in the securities market (broker, depository, trustee).
- An investment fund management organization, a specialized depository of an investment fund.
- Another commercial organization that has been on the market for at least three years.
The same representative may represent bondholders in relation to several bond issues of one or more issuers.
A representative of the bondholders without a power of attorney acts on behalf of the bondholders on the basis of the prospectus and the agreement concluded with the issuer.
The services of a representative of the bondholders are paid by the issuer who appointed him or the bondholders who elected a representative at the general meeting.
What does the representative of the bondholders do?
A representative of the bondholders represents their interests before government agencies, the issuer, the persons who provided security for the fulfillment of obligations under the bonds and other persons.
Duties of the representative of the bondholders::
- To execute the decisions of the general meeting.
- To protect the interests of bondholders.
- To make claims on behalf of the bondholders to the issuer, the person who provided the collateral, etc.
- The representative of the bondholders has the right, in particular, to receive a register of bondholders from the issuer’s depository.
How we can be useful in representing interests in the acquisition/disposal of bonds
Our lawyers and attorneys are experienced specialists in the field of securities for private clients. We can:
- Advise you on the acquisition, alienation of bonds by you, interaction with the issuer and the representative of the owners of securities;
- Become a representative of bondholders for a non—resident issuer;
- Advise you on the issue of the powers of the representative of the bondholders;
- Draw up contracts and other documents for the purchase and disposal of bonds;
- Represent your interests in the acquisition and disposal of bonds in government agencies.
Contact us
If you have any questions about the purchase or disposal of bonds, we will be happy to help you! Our long-term experience in the field of securities, including the purchase and disposal of bonds, will help you in resolving any situations.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@ambylegal.by.
