Bank of Russia develops draft securities issue standards
The Draft Regulation 'On the Securities Issue Standards' is aimed at bringing the Bank of Russia regulations governing the issuance of securities by non-financial and financial organisations into line with the provisions of the law on the simplification of securities issues, which come into force on 1 January 2020.
The document creates new opportunities to raise financing by issuing securities and also makes the registration of a securities issue more comfortable for the issuers.
In particular, the document shortens the time lines to complete internal corporate procedures necessary for the issue of securities. This has become possible, first and foremost, because the issuer is now entitled to assign the right to sign the decision to issue securities or other issuable instruments to an authorised official and also because no approval of the decision to issue bonds is any longer required.
The draft regulation also governs the procedure for submitting documents for the state registration of the securities issue in electronic form. The document expands the list of instances where, instead of the registration of a report on results of the issue, sending a notice is admissible. In particular, the notification procedure is provided for the placement of non-convertible bonds and for the offering of shares upon foundation of a joint-stock company. From 2020, the authority to send the notice will pass from the issuer to the registrar or to the depository that maintains the centralised accounting for the rights in bonds.
The document introduces a regulatory framework governing the registration by registrars of the issues of shares placed upon foundation of joint-stock companies that are not credit institutions, or placed by non-credit financial organisations for which, pursuant to federal laws, the decision to perform their state registration is to be taken by the Bank of Russia.
Proposals and comments to the draft regulation will be accepted until 17 July 2019.