RUSSIA: MOEX Announces New Listing Rules

Wednesday March 1 2023

Moscow Exchange announced a new version of the listing rules which is brought into line with the new regulation will come into force on 6^th March 2023. 

The new listing rules have adjusted the structure of the Sustainable Development Sector in connection with the emergence of new types of Environmental, Social, and Governance (ESG) bonds in the Emission Standards. The sustainable development sector will now comprise three segments: 

• Segment of sustainable development bonds (green, social and sustainable development bonds) 
• Sustainable Development Goals-related bond segment (Sustainable Development Goals-related bonds and climate transition bonds) 
• Segment of national and adaptation projects. 

Also, the new listing rules change a number of requirements in terms of corporate governance. In particular, a 30-day period has been established after the annual meeting of shareholders for the election of committee members by the board of directors. 

The capabilities of issuers – Small and Medium Enterprises (SMEs) – are expanding now they will be able to include their securities simultaneously in the RII Sector / RII-Prime Segment and the Growth Sector. 

From 13 to 5 working days, the period for making a decision on the inclusion of units of exchange-traded mutual funds and bonds of Russian issuers (with the exception of exchange-traded bonds) in the third level of listing has been reduced. 

With regard to foreign securities, the new listing rules provide for the possibility of their admission to circulation at the initiative of the exchange only among qualified investors for the period of placement of substitute bonds and redemption, if such foreign securities are not listed on a foreign exchange. In addition, the Moscow Exchange may restrict the circulation of securities of foreign issuers only among qualified investors in the event of appropriate changes to the regulation of the Bank of Russia. 

Securities admitted to trading at the initiative of the exchange will not be subject to the requirement of mandatory exclusion from listing in the absence of trading in securities for the last 12 months due to the restriction of trading on securities blocked by foreign depositories. 

The Listing Rules also amended the disclosure requirements for issuers who have not registered a Prospectus of Securities and foreign issuers. 

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