CBR imposes permanent ban on the sale of securities from 'unfriendly' nations to non-qualified investors
MOSCOW. Oct 2 (Interfax) - Instructions from the Bank of Russia, which defines securities and derivative financial instruments which are only available only to qualified investors, has entered into effect on October 1.
These include securities of issuers registered in unfriendly countries, or payments or accounting of rights in respect of which are made through the infrastructure of unfriendly countries, as well as deliverable derivative financial instruments, the underlying asset of which is the said securities.
The purpose of this instruction is to exclude non-qualified investors from assuming excessive sanctions risks on foreign instruments, the Central Bank said.
Non-qualified investors may acquire securities of friendly countries that are not accounted for through unfriendly infrastructure, as well as foreign securities whose issuers operate primarily in Russia and the Eurasian Economic Union.
Previously, the sale of securities of issuers from unfriendly countries to non-qualified investors was restricted by a Central Bank regulation. Thus, from October 1, 2022 brokers were prohibited to execute orders from non-qualified investors to purchase such securities, if as a result of the transaction their share in the investor's portfolio will exceed 15%.
From January 1, 2023, brokers must suspend the execution of any instruction from non-qualified investors to increase their position in securities of unfriendly countries. In March, the Bank of Russia announced the extension of this ban through October 1. The injunction will remain in force until a directive comes into effect that makes this restriction permanent, the regulator said.
The SPB Exchange said that in accordance with the Central Bank's instruction it has defined a list of securities which will be available only to qualified investors beginning on October 2. The list includes more than 1900 positions. Non-qualified investors will continue to have access to securities listed on the Hong Kong Stock Exchange and quasi-Russian securities, the exchange said.
"Moscow Exchange" , in turn, reported that from October 2 will introduce restrictions on the submission of applications for the purchase of securities of foreign issuers for non-qualified investors in accordance with the Central Bank's instruction. Its list of securities intended exclusively for qualified investors included 679 positions.
The Moscow Exchange , in turn, said that from October 2 it will introduce restrictions on filing bids to purchase securities of foreign issuers for non-qualified investors in accordance with the Central Bank's instruction. Its list of securities intended exclusively for qualified investors included 679 positions.