Russia joining WTO with right to limit non-resident share in depositories, but not planning to apply
MOSCOW. Nov 21 (Interfax) - Russia's Federal Financial Markets Service does not plan to impose restrictions on the size of the non-resident share in the equity of registrars or settlement and specialized depositories, a FFMS spokesman told Interfax.
As part of its talks on WTO accession, Russia envisaged various opportunities to protect its domestic market, including the stock market. Russia insisted on the right to restrict the share of non-residents and their affiliated parties in the equity of registrars, settlement depositories and specialized depositories to no more than 25%. For specialized depositories this right will last for three years from joining the WTO.
"For now the service does not plan to impose the restrictions after Russia joins the WTO," the spokesman said. He noted that Russia currently restricts the non-resident share in insurance company equity to 25% of charter capital.
Russia also envisaged the opportunity to impose restrictions on license requirements for registrars: within six months of obtaining its license the registrar must have handle the registers of 50 issuers with at least 500 shareholders. This restriction was lifted from Russian legislation in the spring of 2011.
"We do not plan to return to the lifted restriction" the spokesman said.
Russia also asked for the right to restrict the share per shareholder in stock exchange equity to no more than 20%. This restriction has already been written into the law on the securities market with one exception. The restriction will not be applied to a stock market shareholder if they are themselves a stock or currency exchange with permission from the Central Bank of Russia to carry out foreign currency purchase and sale transactions.
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