CBR currently sees no loopholes for circumventing stock market restrictions, but will monitor its creativity - Nabiullina

SOCHI. Oct 17 (Interfax) - The Central Bank of Russia does not see any existing methods for circumventing the restrictions on type C accounts on the Russian stock market, but is monitoring its participants' creativity and is ready to shut down new schemes when necessary, Central Bank of Russia Governor Elvira Nabiullina said.

At the start of October, Russian President Vladimir Putin signed decree No. 840 on the temporary accounting procedure for certain securities, which stipulates the transfer of securities which depositories account for in type C depo accounts of their depositors to type C individual accounts opened by the depositories themselves. In line with a decision of the CBR's board of directors which followed the decree, its requirements apply to the shares of Russian joint stock companies, including redomiciled ones of those with international company status. The regulator was required to finish opening type C individual accounts and transferring their securities by October 11. These measures aim to stop attempts to bring Russian shares to auction from type C accounts, bypassing the requirements of the Russian president's decrees, the bank said.

"As for possible loopholes for bypassing the restrictions, we believe that yes, we've now closed them," Nabiullina said in answer to a question on this issue during a conversation with journalists on the sidelines of the Finopolis forum.

"But we will carefully monitor [this]. If any creative schemes appear, then we're ready to quickly shut them down," she said.

The procedure introduced by the presidential decree is valid until December 31, 2025.