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Bank of Russia limits opportunities for accelerated sale of foreign depositary receipts converted into shares

27 April 2022
Press release

To maintain financial stability, the Bank of Russia ordered the professional market participants-depositories to maintain separate accounting of Russian issuer shares received as a result of the conversion of foreign depositary receipts, and to limit the intraday debits of such securities at the level of 0.2% of their number. The above restrictions apply to both on- and off-exchange trades.

The prescribed measures are not applicable if foreign depositary receipts were purchased before 1 March 2022 or the securities holder has the permission of the Government Commission.

The Bank of Russia noted a trend for residents to acquire depositary receipts from non-residents from unfriendly countries, convert them into shares and sell the shares via on-exchange trading. Such practice may result in a disproportionate increase in the supply of local stocks in the market, which may have a significant impact on pricing and provoke a drop in stock prices. In turn, such situation may entail a negative revaluation of assets among Russian investors and jeopardise the stability of the financial market. These measures are aimed at stabilising the situation.

The reference to the Press Service is mandatory if you intend to use this material.