Admission of securities to on-exchange trading
The Bank of Russia issued Regulation No.
The document supersedes RF FFMS Order No. 13-62/pz-n, dated 30 July 2013, ‘On the Procedure for Admission of Securities to On-exchange Trading’.
The Regulation introduces a number of amendments with regard to corporate governance requirements for issuers of listed securities, which includes requirements for the composition of a Nomination Committee and the functions of a Corporate Secretary.
These amendments formalise into a regulation the same provisions of the BoR-recommended Corporate Governance Code (Bank of Russia Letter No. 06-52/2463, dated 10 April 2014).
To enable a smooth rollout of the new requirements, the period when the issuer’s incompliant securities can remain in the top quotation list was extended from 9 June 2016 to 3 October 2016. This will enable issuers to make decisions as necessary at their annual meetings to be held between June and July of this year. At the same time, the timeline has been extended for corrections to be made to exchanges’ listing rules to ensure they are compliant with the requirements as regards criteria for establishing the independence of board members, with the new deadline set for 1 October 2017.
The Regulation introduces a more flexible approach in determining the requirements for credit ratings applicable for securities put into the highest quotation list, with the BoR Board of Directors to make decisions on the ranking level.
With a view to promoting the development of projects implemented on the principles of public-private partnerships, the concept of concessionaire issuers is broadened, in a move to enable participants in projects (other than concessionary agreements) to raise additional funding through issuance of bonds included in quotation lists on special terms.
In addition, for the purposes of better market transparency and investor convenience, improvements were made to the procedure for trading organisers’ disclosure of information on securities admitted to on-exchange trading: the list of securities as disclosed on the trading organiser’s site must have active links to sections with information on each security and the issuer or the person obliged by this security.
Trade organisers have three months of the Regulation’s effective date to ensure compliance, and six months of its effective to ensure they are compliant with the procedure for information disclosure on securities.
The reference to the Press Service is mandatory if you intend to use this material.
04.05.2016 00.00.00