Capital Market Regulations in Russia
Capital Market Regulations in RussiaUpdated on Monday 04th July 2016
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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 Civil Code;
- - the Law on Joint Stock Companies;
- - the Law on Securities Market;
- - the Law on the Central Bank.
The Central Bank is also the main regulator of the financial markets in Russia.
Main capital 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.
Capital markets listing requirements in Russia
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:
- - the quotation list A1, under which the value of the shares must be at least 10 billion rubles;
- - the quotation list A2, under which the value of the shares must be at least 3 billion rubles;
- - the quotation list B, under which the value of the shares must be at least 1.5 billion rubles.
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.