Capital Market Rules in Russia
Russia has strong legislation boosting foreign investments. These laws list the most important stock exchanges in Russia: the Moscow Exchange (MOEX) and the Saint-Petersburg Exchange (SPB Exchange).
The primary 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 the primary controller of the financial markets in Russia.
Major capital markets in Russia
The most important capital markets in Russia are the equity and debt capital markets. The main distinction between them is the financial mechanisms employed by Russian or foreign companies switching on the stock exchanges. While equity markets allow the listing of dividends, shares, or securities, debt capital markets allow recording debt securities and bonds. All types of financial tools, no matter the capital market, can be sold on the most important Russian stock exchanges.
Companies pursuing trade on the Russian capital markets are subject to various requirements. Most significantly, the company must be a joint-stock company and proffer an initial public offering (IPO) with the financial regulator.
Capital markets listing conditions in Russia
Apart from the requirements mentioned above, both foreign and regional companies operating in Russia must meet other needs 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, relying 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 claims 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 claims must be at least 1.5 billion rubles.
Additional conditions 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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