The Bank of Russia has imposed restrictions on a number of speculative transactions on the stock market to preserve financial stability. This is stated in the message of the Central Bank.
In particular, depositories and registrars will not be able to conduct transactions with securities credited from the accounts of foreign depositories or authorized holders for 6 months, with the exception of securities purchased before March 1, 2022.
Securities that were purchased by non-residents from friendly countries and controlled foreign companies (except residents of the Republic of Belarus) from other non-residents in the period from June 25, 2022 and until the date of reclassification of the depot account of type "C" into a regular depot account fall into the "quarantine" for 6 months. At the same time, depositories are required to keep separate records of such assets.
These restrictions do not apply to shares received as a result of the repayment of depositary receipts if the investor owned them before March 1, 2022.
The innovations will not affect shares that will be received in connection with the execution of the securities loan agreement or the second part of the repo transaction, when depositary receipts certifying rights in respect of such shares were transferred under the first part of the transaction. It also excludes cases when the Government Commission for the Control of Foreign Investments in the Russian Federation has received permission for transactions.
