Securities administration - Uruguay
The main source of information for listed securities is the stock exchange. Companies announce events through the Uruguay Stock Exchange Bulletin, which is published daily and available from the website of the Montevideo Stock Exchange. Announcements must be made between 10 and 30 days before the event.
Based on the positions recorded at the close of business on the record date, interest or redemption proceeds from debt securities will be credited to the customer’s CBL account after the start of real-time processing for the payment date or maturity date, with good value.
Payments are credited in the denomination currency of each security, unless:
- A currency option exists and such option has been exercised by the customer; or
- The issue’s terms and conditions state that income proceeds are payable in a currency other than the denomination currency.
The record date for securities held in book-entry form at the Central Bank is generally one business day before payment date. The record date for securities held in physical form is generally 10 calendar days before the payment date.
Interest payments on debt securities are calculated on the basis of 30 days per month and a 360-day year. Interest payments on Letras de Tesorería are calculated on the basis of the exact number of days elapsed and a 365-day year.
For coupon payments on dematerialised government debt, entitlements are credited automatically on payment date in the local custodian account at the Central Bank.
Customers may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security. These options include, but are not limited to, put options, conversions, exercises of warrants, exchanges, detachment of warrants.
In addition, CBL informs customers on an “as and if received” basis of unscheduled securities events occurring on account holdings, such as rights offers, reinvestment options, exchange offers, purchase offers, mergers.
Bonos del Tesoro carry put options which entitle the holder to participate in an annual amortisation programme. The Uruguay Treasury has imposed “ceilings” in order to limit the total amount of rights presented for amortisation to a fixed percentage relative to the total amount of the issue:
- If the total amount of rights presented for amortisation exceeds the ceiling, a pro-rata allocation will take place.
- If the amount of rights presented for amortisation is below the ceiling, the government may extend the exercise period.
If, after this extension, the amount of rights presented for amortisation is still below the ceiling, the amount not allocated remains pending until the final redemption on maturity day.
The normal period during which holders can exercise their rights is fixed at 15 calendar days and ends four days prior to the amortisation date.
Listed companies must announce all meeting notifications through the daily bulletin of the Montevideo Stock Exchange. Ordinary meetings must be held within 180 days after the close of each year-end balance. Extraordinary meetings may occur on an ad-hoc basis.
Proxy voting services are not available in CBL for this market.