New Listing rules of the Exchange to take effect on March 27, 2012
Directorate of MICEX Stock Exchange (the company of MICEX-RTS Group) has made a resolution to give effect to the Rules for listing securities, admission to flotation and trading in CJSC MICEX Stock Exchange (hereinafter the Rules) as of March 27, 2012.
The Rules have been amended in the following: procedure for delisting of securities on the basis of an issuer"s application has been modified, new sector for trading in securities of companies associated with increased investment risk has been introduced, procedure for removing restrictions on trading in bonds of defaulting issuers as well as the Innovation and Investment Market admission requirements have been specified. In addition, a provision on Exchange"s power to decline securities admission to trading without giving any reasons has been added.
According to the new delisting procedure carried out on the basis of the application filed by an issuer, the Exchange undertakes the following actions:
- Within one month since the application has been submitted, the Exchange asks the Securities market committee of MICEX Stock Exchange to provide experts opinion regarding the exclusion of the securities from the Exchange"s list of securities admitted to trading.
- Upon receiving the Committee"s recommendations to exclude the securities, the Exchange made the relevant resolution and determines a waiting period, i.e. period of time when the securities continue trading.
- The Exchange notifies trading participants by releasing the relevant information on its website within one day after the exclusion resolution was made. The notification shall contain day when trading in the securities is to be suspended, last trading day and day of exclusion of the securities from the list.
- The waiting period can take from 14 days to 3 months from the day when the Exchange decided to remove the securities from the list and suspend trading in these securities.
- If the Committee advised the Exchange to retain trading in the securities the Exchange is liable to reject the issuer"s application.
The Rules have been also changed to include a procedure for admission to trading of securities in the new sector, Sector for companies with increased investment risk. The Sector was created in accordance with recommendations of the Listing committee in order to implement measures aimed at protecting investors" rights. Decision on admission to trading in the Sector is to be made by the Exchange based on recommendations of the Listing committee or Securities market committee provided that the Exchange will elaborate special criteria to select securities and issuers before they are presented to the Committees.
Special marks will be assigned to securities included in the Sector. Such securities will trade within the dedicated trading modes in order to reduce potential losses when trading securities associated with unpredictable level of investment risk in MICEX Stock Exchange.
Introduction of the provisions on admission to trading in the Sector for companies with increased investment risk has been related to a subsequent modification of the MICEX Stock Exchange regulatory documents. Thereby, these provisions will take effect after all necessary amendments are introduced in the relevant regulatory documents including the Trading rules of CJSC MICEX Stock Exchange.
The Exchange has been authorized to reject any application on admission to trading or cease trading in particular securities on the organized market without giving any reasons, due to amendments introduced in the effective Russian Federation legislation for the stock market. In such cases trading in securities on the Exchange"s organized market is to be ceased no earlier than three months after the Exchange releases the relevant information.
Requirements to securities to be admitted to trading on the Innovation and Investment Market have been specified to include the following: an issuer must meet all criteria set forth in the Clearing rules, it can not only carry out activities in the field of high and innovative technologies, but also implement such technologies and approaches (including in the traditional industries), list of priority industries including agencies for development, the IIM-Board, nanosystem and nanomaterial industry as well as “clean” technologies and new materials has been supplemented and specified.
According to the recommendations of the MICEX Stock Exchange Committee on fixed income securities and money market, procedure for removing restrictions on trading in bonds of defaulting issuers set forth in the Rules has been changed. The changes imply the removal of obligation to transfer defaulting issuer"s securities newly admitted to trading to the special trading mode D. However, restrictions provided in the Rules before are to be maintained for such securities being included in the quotation lists.
In addition, requirements for completing documents while submitting the application on admission to trading in CJSC MICEX Stock Exchange have been changed.
The full text of the new Rules for listing securities, admission to flotation and trading in CJSC MICEX Stock Exchange in English will be published later on the Exchange"s website.
For further information, please contact the Public Relations Department at (495) 363-3232.