18 Sep 2023 15:18

Depositary receipts of quasi-Russian companies relocating to SAR to be automatically converted into shares - Central Bank

MOSCOW. Sept 18 (Interfax) - The conversion of depositary receipts of quasi-Russian companies that have relocated to Russia's special administrative regions (SAR) will occur automatically if the depositary receipts are accounted in Russian depositories, the Central Bank of Russia (CBR) said in a statement.

The CBR has said that an international company is required to notify the holders of the securities register and depositories about the start of the conversion within five working days following state registration. The accounting institutions will then write off the receipts from the investors' accounts and credit them with the shares of the international company.

Receipt holders are not required to take any action independent of being residents or non-residents. The entire conversion process should take no more than three weeks from the date of notification.

The CBR has also extended until December 31, 2023, the moratorium on downgrading securities listings of quasi-Russian companies if they do not comply with corporate governance requirements.

This should allow issuers additional time to bring their respective corporate governance practices into compliance with regulatory requirements and exchange listing rules, the CBR notes.