Russian government proposes to simplify and shorten the procedure of issuance of debt and other securities and to optimise the requirements for disclosure of information by issuers of securities.
In particular, the bill is expected to eliminate the division of the equity securities to certificated and uncertificated, and provide possibility of sending documents required for registration of securities and subsequent procedures to the Bank of Russia in electronic form.
In addition, it may be possible to implement the issuance of bonds (not convertible into shares) with a simplified procedure (under the bonds program).
The Bank of Russia will be given the right to set different requirements for prospectus, depending on the type and category of securities and the main activities of an issuer. It is also suggested that in determining these requirements the Regulator will consider:
- whether an issuer is SME (small and medium-sized enterprise);
- if an issuer discloses information in the form of a quarterly report and notifications on significant company facts;
- number of securities (additional issues) emitted by an issuer during the year.
To this end, it is planned to make changes to articles 2, 7, 8.7, 16-22.1 of the Federal law dated 22 April 1996 № 39-F3 “On securities market”.
In the opinion of the Cabinet, the bill will contribute to the development of the Russian financial market and the removal of unnecessary administrative barriers in the issue of securities.