Securities of issuers limiting disclosures to be sorted out
Currently, many issuers are obliged to limit disclosures taking into account sanction risks. The flip side of such limitations is the information asymmetry in the public capital market. Investors lack information they need to make prudent investment decisions.
In order to protect investors’ interests, the Bank of Russia proposes sorting out (visually marking) the securities of the issuers disclosing insufficient information about themselves, which prevents investors from assessing risks of investing in securities and exercising the rights attached to them. Bonds will not necessarily need to be marked if they have credit ratings assigned by two rating agencies. The regulator’s draft ordinance has been published for public consultation.
In addition, the document specifies the corporate governance requirements for issuers whose shares are to be or have already been included on the quotation lists and contains conditions for securities to be delisted when the issuer undergoes restructuring or liquidation. The draft ordinance also specifies the requirements for investment units of unit investment funds to be entered on the list of securities admitted to on-exchange trading.