Securities administration - Hungary

31.07.2018

Income collection

Market record dateEx-dateBasis for entitlementStandard interest calculation rule
Government Securities
Payment date -2Payment date -3Settled position
on record date

Actual/Actual

Actual/365

Actual/360

Equities
Payment date -5Payment date -6Settled position
on record date
Not applicable

Corporate actions

Most common corporate events

The most important corporate actions in the Hungarian market are: dividend payments, interest payments, redemptions, general meetings.

The primary sources of corporate action information are from:

  • Budapest Stock Exchange website
  • Central Bank of Hungary website http://www.kozzetetelek.hu/, where all corporate action related information should be reported by the issuer of listed securities;
  • Website information provided by issuers;
  • Information issued by KELER Ltd on KID (KELER Ltd’s proprietary client communication system);
  • Other newspapers and direct communication from the issuer for non-listed securities;
  • The issuance prospectus, especially in the cases of government and corporate bonds.

According to current regulations, public companies are required to publish announcements of events, including AGMs and EGMs, or other information that is relevant to their shareholders. 

Organisation of AGM/EGMs

In order to exercise voting rights at GMs, the shareholder must be registered. A proxy can be appointed through a power of attorney but physical presence at the meeting is required.

The blocking of securities for GMs of public limited companies is not compulsory. In the case of private limited companies, attending shares may, at the discretion of the issuer, be blocked within KELER Ltd between record date and GM date but issuers tend not to block their shares before a GM.

Cash payments in HUF

According to the regulation of The National Bank of Hungary 21/2006. (XI. 24.), Regulation on payments and settlements 15§ 2. line of paragraph: payment orders are to be submitted in HUF (meaning that no decimals are allowed in the cash payment system).