Securities issue procedure to become simpler
The Bank of Russia has simplified the procedure for issuing securities and launched the electronic registration of securities issues. This is provided for by the new version of the securities issue standards to become effective on 11 May 2020.
In accordance with the new rules, issue documents shall not contain excessive and duplicate information. The list of documents subject to approval by an issuer’s management bodies has also been reduced. Pursuant to the revised standards, an issuer may prepare and disclose its securities prospectus without registration. Moreover, issue documents may now be signed not only by the chief executive of an issuing company.
In addition, a company is allowed to submit its issue documents to the Bank of Russia in electronic form and receive an electronic confirmation of their registration.
These standards regulate the registration by registrars of securities issues offered upon the foundation of joint-stock companies or through investment platforms.
This is the first time that the Bank of Russia establishes rules for issuers planning to issue ‘green’, social, and infrastructure bonds. The official stipulation of these types of bonds will further on make it possible to create regulatory incentives for their issue and acquisition.
The Bank of Russia emphasises that if an issuer submitted its documents prior to the effective date of the new standards, these documents will be considered in compliance with the previous requirements, and therefore, companies will not have to modify their documents and submit them anew. In addition, the updated standards are not applicable to the issue of securities registered before 1 January 2020.
These standards were revised following the approval of the law on simplifying the securities issue procedure.