Securities administration - Sweden
Information sources on securities events include the register of the CSD (Euroclear Sweden), press releases from issuing companies and local newspapers.
Income collection
| Market Record date a | Ex-date | Basis for entitlement | Standard interest calculation rule b | |
| Interest payment | Government and corporate bonds: Payment date -5 business days | Not applicable | Record date | 30/360 or actual/360 |
| Dividend payment | For SEK payments: Usually Payment date -3 business days For EUR payments: Usually Payment date -5 business days | Varies / AGM +1 business day | Record date | Not applicable |
a. Record date is defined in accordance with the applicable T+2 settlement cycle.
b. The interest calculation rule is defined in the Terms and Conditions of the related debt securities.
Interest
Interest on Swedish bonds will usually be credited to the customer's account in the overnight processing for coupon payment date with same-day value, based on the positions at close of business on Record date as defined above. Exceptions may be made, for example, in the case of payments “upon receipt of funds”.
Dividends
Record dates for equities, usually two calendar days after the AGM, are determined by the relevant companies according to domestic market practice and are updated in accordance with information received, primarily from depositories but also from newspapers, issuing companies and information suppliers. Dividend payments will usually be credited to the customer's account in the overnight processing for dividend Payment date with same-day value. Exceptions may be made, for example, in the case of payments “upon receipt of funds”.
Alternatives to cash dividends (such as stock dividends or reinvestment plans) are rare.
Any information about Ex-date is based on the stipulated Record date, according to the standard settlement cycle T+2.
Corporate actions
Information sources on securities events include Nasdaq Stockholm AB, the CSD (Euroclear Sweden), the issuing companies, the internet and local newspapers. Corporate actions are usually announced two to four weeks before Record date. Ex-date is Record date -1 business day. Ex-date is consistent with the applicable two-day settlement period. The issuing company sets the Record date based on the terms and conditions of the issue.
| Market Record date | Ex-date | Basis for entitlement | |
| Mandatory events | Ex-date +1 business day | Record date -1 business day | Settled positions at closing of Record date |
| Rights issues | Ex-date +1 business day | Record date -1 business day | Settled positions at closing of Record date |
Swedish law does not impose any restrictions or regulations, if a foreign institute participates in a Swedish corporate action.
Most common corporate events
The most common corporate actions are rights issues, tender offers and stock splits/reversed splits.
Rights and bonus issues
The subscription period and also the rights trading period (where applicable) usually start two business days after the Record date at the earliest. The subscription period is set by the company, and this period is usually not less than two weeks.
Trading of rights ends, in the majority of cases, two business days before the end of the subscription period.
Payment is usually processed on the last day of the subscription period. The market deadline for trading of rights is normally two days before the end of the subscription period and cash from the sale of rights is credited upon settlement of the underlying trade.
In rights or bonus issues, the new shares do not initially rank pari-passu with the parent shares, unless the increase in share capital has been entered into the trade register prior to the issue.
Registration of share capital usually takes four to eight weeks. Once the new shares have been registered, a pari passu event must take place. The interim shares are exchanged for ordinary shares, which are identical in all respects and entitlements as the already existing shares.
Organisation of AGM/EGMs
Shareholders can exercise their voting rights either in person or via proxy voting. However, this is only possible via physical attendance of a representative, who must show the original power of attorney at each meeting.
To attend a general meeting, the shareholder is required to give a separate notification of attendance. The deadline for notifying the company of attendance is usually five business days before the meeting.
In order for the investor to have voting rights, the beneficial owner must be entered into the shareholder register in the book-entry system on the Record date of the general meeting, taking into account the applicable temporary registration deadline. Record date is generally five calendar days, excluding Sundays and Swedish public holidays, before the general meeting.
If the securities are registered in a nominee’s name (for example, when the securities are held by foreign investors), the shares must be registered temporarily in the name of the beneficial owner.
So that the local custodian can register the beneficial owner, the following information is required:
- Complete name, address, nationality and the date of birth (in case of individual ownership) of the beneficial owner;
- ISIN code and amount of shares to be registered;
- Power of Attorney duly completed and signed.