The subcommittee of the Government Commission on Issuing permits has decided to extend 15 programs of depositary receipts. This was stated by the Director of the Financial Policy Department of the Ministry of Finance of the Russian Federation Ivan Chebeskov at the conference "Financial products for retail investors: ride the crisis," the Ministry of Finance of the Russian Federation reported.
"A law has recently been passed that establishes that issuers who have depositary receipts on Western stock exchanges must delist these depositary receipts. A number of companies had the opportunity to ask for permission to leave the listing for one reason or another. Some companies took advantage of it, some did not," he said.
Thus, 19 issuers from 36 depository programs applied to the sub-commission for permission, 15 of them were given positive decisions to continue the programs. "There are programs that were allowed to continue indefinitely, there are programs that were granted permission with a certain urgency — in most cases it is one year," I. Chebeskov explained.
At the same time, most companies, intending to leave their depositary receipts in one form or another, plan to transfer these programs to other jurisdictions, he also stressed. "Everyone understands that some need opportunities to attract investment from foreign investors, but everyone understands that the markets in which foreign investment can be attracted are likely to shift to the East. In those jurisdictions where these receipts are now placed, raising money will be quite difficult," he said.
