Bank of Russia cancels limits on issuing depository receipts for Russian stocks
The Bank of Russia cancels the limit on the portion of Russian issuers’ shares to be placed and publicly traded outside Russia. The relevant ordinance has been registered by the Russian Ministry of Justice.
Up to this date, there have been two restrictions: depository receipts could be issued for only 25% of securities from one issue, and no more than 50% of the total share offering could be placed as depository receipts. Now, Russian issuers may place any number of their stocks both inside and outside Russia. The regulator has eliminated one of the reasons why Russian businesses structured their stock offerings with involvement of a foreign entity.
The cancellation of limits removes unnecessary barriers and will encourage Russian businesses to enter public equity markets.
The new rules will come into force on 28 November 2021.