New rules of securities listing: draft regulation
The Bank of Russia updated the requirements for admitting securities to organised trading. The draft regulation is based on market practices that proved to be effective.
It is proposed to set a minimum amount of initial public offerings (IPOs) for quotation lists. The proportion of traded securities will depend on the level of equity capital of the issuer.
Issuers planning IPOs should invite at least two independent analysts to assess their companies’ fair value. After IPOs, issuers should receive share ratings from two credit rating agencies.
The new listing rules will formalise best corporate governance practices. In particular, the document describes independence criteria for board members, specifies the number of independent directors and a list of mandatory committees.
In addition, all information important to investors will be put together. Exchanges will post issuer and security registration cards, as well as a calendar of next IPOs, on their websites.