Central Bank: depositary receipts of companies moving to Russia will be converted into shares

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AK&M 18 September 2023 15:31

Depository receipts of companies moving to Russia will be automatically converted into shares. This is stated in the press service of the Central Bank.

The regulator has established the procedure for automatic conversion of depository receipts of quasi-Russian companies in case they receive the status of an international company with a residence permit in the Russian jurisdiction.

The Central Bank notes that this procedure is introduced in respect of only those securities whose rights are accounted for by Russian depositories.

After state registration, an international company is obliged to notify the holders of the securities register and depositories of the beginning of the conversion within five working days.

In turn, accounting institutions will write off receipts from investors' accounts and transfer shares of an international company to them.

Holders of receipts, regardless of whether they are residents or non-residents, will not need to take any action. The entire conversion process will take no more than three weeks from the date of receipt of the notification, the Central Bank emphasizes.

In addition, the regulator has extended until the end of 2023 a moratorium on lowering the listing level of securities of quasi-Russian companies if they do not comply with corporate governance requirements.