The issuer is who he is in simple words for securities (definition)

If we consider in general, then an issuer is (in simple words) virtually any organization that issues (issues) different types of securities, payment and settlement types of documents (bank cards should be included here), banknotes, etc. The process of releasing any type of securities, plastic cards or money into circulation is called issue.

Depending on the type of securities, issuers can often be a variety of structures.

So, for example, the issuer of banknotes is always only the state; no one else is allowed to print and put money into circulation. But almost any company can issue shares and bonds; plastic cards are issued by commercial and state banks.

The largest issuer in any country is the state, which has the right to print (issue) banknotes. Also issuers are banks and various companies, enterprises, corporations - literally everyone who issues certain securities.

Summary of information disclosure by issuers

On the company card ( Summary ) in the Information Disclosure , the user can familiarize himself with the latest messages from issuers.

Block “Information Disclosure”

The block contains a link, following which the user will be taken to the official information disclosure page on the Internet.

Details of issuer communications

To study in more detail the messages of the issuers of the company of interest, you need to click “More details” in the “Information Disclosure” or go to the “Information Disclosure” .

Disclosure Tab

The card for each event contains the following information:

• posting date
• short description
• message
• agency , name of the information platform on which the information was posted
• page address , open access link
• Event date

The Kontur.Focus system provides an option that allows the user to upload information of interest in one of the available formats: .xlxs, .docs, .pdf . This function was created for the convenience of working with the received information; for example, it can be shared with partners or printed for personal use in the counterparty’s dossier.

Unloading

Information on published messages from issuers allows you to obtain information about affiliates, licenses, existing contracts, etc. It is also possible to foresee loss of profit, the need for additional financing, and determine the direction of further business development. The Kontur.Focus system offers its users to get acquainted with such features as accounting reports, certificates and declarations of conformity, notes about the company, public lists.

How bank cards are issued

The issuance of bank cards is carried out in the form of a procedure that includes several stages: drawing up an agreement with the client, opening a card account for him in the specified currency, physically producing the card, handing it over to the client, maintaining the account and card, all operations.

If the contract period has expired or for other reasons the card needs to be closed, then the account is first closed, then the card is confiscated from the client and destroyed.

Features and stages of issuing a bank card:

• Application of the coloring composition to A3 size PVC sheets - according to a pre-created and approved template.
• Laminating a sheet is the application of a special coating to it, which fixes the paint and increases the wear resistance of the material.
• Cutting out individual cards - cutting using a special machine.
• Implantation - a microchip is implanted into the cards, onto which all the information necessary for the devices to be read is recorded.
• Magnetic stripe pressing – the card blank is connected to a transparent film.
• Personalization (embossing) – raised letters are placed on the card (16-digit number, expiration date, holder’s full name and other information in the prescribed manner).

The concept of “security”

Security

- a financial document giving certain rights that can be assigned. The assignment of rights to securities is called an assignment. In order for a document to be considered a security, it must meet several criteria.

• Firstly, it must be based on a unified asset
  - a share in an enterprise, a loan of funds or a standardized product (such as a barrel of oil of a certain grade, a gold bar of the corresponding standard and weight). Thus, for example, a certificate of registration of a motor vehicle is not a security, since the asset underlying it is not standardized - all cars are different. But a document according to which the seller undertakes to deliver, and the buyer to pay, a certain standard amount of wheat on a certain day in the future can be considered a security - such a financial instrument is called a commodity futures contract.
• Secondly, the security has a certain value. Its price can be determined theoretically. In addition, securities have a market value - due to supply and demand. Thus, the debt obligations of a company of a certain category can be assessed based on the lending rates prevailing at a certain moment, adjusted for the level of reliability of the borrower. Many securities are bought and sold on exchanges, where their prices are determined in real time by issuing buy and sell orders.
• Thirdly, securities have good liquidity, that is, they can be sold with relatively small losses if you need to do this in a short time.
• Fourthly, in most countries, including Russia, issues of securities are subject to mandatory state registration and, accordingly, state control.

Securities are divided

into three categories:

• equity securities (common shares, preferred shares)
• debt securities (government, corporate bonds, bills)
• derivatives (derivative securities such as futures, options)

According to the form of issue, securities are divided into documentary, for the transfer of rights for which it is enough to transfer the document itself, and non-documentary, the registration of rights to which is carried out by a specialized organization that maintains a register of owners. To transfer uncertificated securities when transferred from one owner to another, a corresponding entry is made in the register.

Securities are issued by issuers (state or companies) for the purpose of implementing certain projects, financing programs, and replenishing working capital of enterprises through the capital market.

Securities are purchased, as a rule, for purposes such as investment, that is, obtaining a certain income in the future, speculation, that is, in the hope of selling an asset at a higher price than it was purchased, arbitrage - making money from the difference in price for the same asset in different places or hedging - insurance of financial risks.

Issue of securities

(public offering, release to the market) involves four stages:

• Making a decision on the placement of securities. The decision to issue securities of a joint stock company is made by the board of directors and approved by the general meeting of shareholders or directly by the general meeting of shareholders.
• State registration of the controlling organization. In Russia, this is the Central Bank of the Russian Federation (formerly the Federal Financial Markets Service).
• Placement of issue-grade securities.
• Registration of a report on the results of the issue of issue-grade securities or submission to the Central Bank of a notification on the results of the issue of issue-grade securities.

Tasks

, which are resolved through the issue of securities, can be as follows:

• Formation of the initial capital of an OJSC upon its creation;
• Making changes to the charter documents related to increasing the authorized capital, as well as splitting or consolidating previously issued securities;
• Transformation or reorganization of the organization;
• Changes in rights granted by previously issued securities;
• Raising funds by increasing capital by issuing additional shares or by borrowing on the bond market.

To denote types of share issues, terms borrowed from English are often used:

• An initial public offering
  is the initial placement of shares among investors.
• IPO
  (initial public offering) is a public offering of shares of a new or additional issue to an unlimited number of potential investors.
• SPO
  (secondary public offering) is a public offering of shares that belong to existing shareholders (usually the founders of the company).
• Secondary
  - placement of additional issues.
• Additional placement
  (Follow-on) - placement of shares in addition to those already traded on the stock exchange or over-the-counter market.
• Private placement
  is closed; shares are sold to a limited and most often predetermined number of persons.

Activities in the securities market for their placement are called underwriting

. The professional market participant conducting the issue is the underwriter, and the person placing the securities is the issuer.

Legislation on disclosure of information by issuers

In the Russian Federation, the securities market is regulated by the following documents:

• Civil Code of the Russian Federation (Chapter 7 “Securities”)
• Federal Law 39-FZ “ On the Securities Market
  ” dated April 22, 1996
• Federal Law 208-FZ “On Joint-Stock Companies” dated December 26, 1995
• By Order of the Federal Financial Markets Service of Russia 11-46/PZ-N “ Regulations on the disclosure of information by issuers of equity securities
  ” dated 10/04/2011.
• Code of Administrative Offenses (Administrative Offenses Code of the Russian Federation, Article 15.19.2)

Information disclosure requirements apply not only to public issuers (i.e., companies that have made a public offering of securities), but also to joint-stock companies.

In addition, the requirement to disclose information in some cases applies to:

• joint-stock investment funds and management companies of mutual investment funds - in accordance with Order of the Federal Financial Markets Service of Russia No. 05–23/pz-n dated June 22, 2005;
• persons purchasing ordinary shares admitted to trading on the stock exchange (Order of the Federal Financial Markets Service of Russia No. 06–76/pz-n dated July 13, 2006);
• stock exchanges (Order of the Federal Financial Markets Service of Russia No. 10–78/pz-n dated December 28, 2010);
• depositories that carry out mandatory centralized storage of securities (Order of the Federal Financial Markets Service of Russia No. 13–29/pz-n dated April 16, 2013).

The Information Disclosure Regulation does not apply to issuers of state and municipal securities.

Comments: 26

Your comment (question) If you have questions about this article, you can tell us. Our team consists of only experienced experts and specialists with specialized education. We will try to help you in this topic:

Author of the article Irina Rusanova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Andrey
   11/15/2021 at 13:02 I bought an electronic ticket for the Russian Railways train using a Sberbank card. Then, for personal reasons, I had to return my ticket. On El. I received a letter in the mail stating that the money will be returned to the card in 7-30 days; in case of non-refund, contact the issuing bank. That is, I should contact Sberbank?
   Reply ↓ Olga Pikhotskaya
   11/15/2021 at 14:19

   Andrey, good afternoon. Yes, you need to contact the bank that issued the card from which the payment was made.

   Reply ↓

Supervisory authority

From September 1, 2013 to the Bank of Russia

the powers of the Federal Service for Financial Markets (FSFM) to regulate, control and supervise the financial markets were transferred (in accordance with Federal Law dated July 23, 2013 No. 251-FZ “On amendments to certain legislative acts of the Russian Federation in connection with the transfer to the Central the Bank of the Russian Federation has powers to regulate, control and supervise the financial markets”).

On March 3, 2014, the Bank of Russia liquidated the Financial Markets Service (FMS), instead creating nine new divisions responsible for the development, control and functioning of financial markets:

• Financial Markets Development Department;
• Department of Access to Financial Markets;
• Department for collecting and processing reports of non-credit financial organizations;
• Insurance Market Department;
• Department of Collective Investments and Trust Management;
• Department of Securities Market and Commodity Market;
• General Directorate of the Microfinance Market;
• Main Directorate for Combating Unfair Practices in Financial Markets;
• Service of the Bank of Russia for the protection of the rights of consumers of financial services and minority shareholders.

Responsibility for breaking the law

Violation of the information disclosure procedure by public companies entails administrative liability.

The bulk of fines are imposed under Article 15.19.2 of the Code of Administrative Offenses of the Russian Federation for violations related to the procedure and timing of information disclosure. Basically, the supervisory authority (Bank of Russia) checks the fact and timing of the actual disclosure of information, rather than its completeness and reliability.

For example, non-disclosure or violation of the procedure and terms for disclosure, or disclosure of information not in full, or disclosure of misleading information, entails the imposition of an administrative fine on officials in the amount of 30,000 to 50,000 rubles

or disqualification for a period
of one to two years
;
for legal entities - from 700,000 to 1,000,000 rubles
.

Example of use on "Secret"

“With bonds, I would recommend adhering to three rules: 1) choose bonds of the first level of listing (this is how the exchange itself protected you from low-quality securities); 2) do not buy bonds (even a bank that is quite viable according to its reporting may have its license revoked, and you are unlikely to be able to get your money back); 3) diversification - try not to invest all your money in one company.”

(Founder of the service for investors BlackTerminal.ru Vitaly Ivanov - with advice for new investors.)