Russia has a strong legislation encouraging foreign investments. These laws include listing on the most important stock exchanges in Russia: the Moscow Exchange (MOEX) and the Saint-Petersburg Exchange (SPB Exchange). The main laws governing capital markets in Russia are:
The Central Bank is also the main regulator of the financial markets in Russia.
The most important capital markets in Russia are the equity and the debt capital markets. The main difference between them is the financial instruments employed by Russian or foreign companies trading on the stock exchanges. While, equity markets allow the listing of dividends, shares or securities, debt capital markets allow for the listing of debt securities and bonds. All types of financial instruments, no matter the capital market, can be traded on the most important Russian stock exchanges.
Companies seeking to trade on the Russian capital markets, are subject to various requirements. The most important of them are: the company must be a joint stock corporation and it must submit an initial public offering (IPO) with the financial regulator.
Apart from the above mentioned requirements, both foreign and local companies operating in Russia must meet other conditions in order to be allowed to trade on the Russian capital markets. First of all, when deciding to go public, the shareholders must convene a general meeting and adopt a resolution on the listing of the company’s shares. Then, depending on the capital, they must select the quotation list their shares will be traded under. Among these are:
Additional requirements also apply to the shareholders of the stock to be traded on the Russian capital markets.
For complete information about capital markets rules, do not hesitate to contact our law firm in Russia.
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