Moscow Exchange sets new listing rules effective June 7, 2016

Russian bourse Moscow Exchange will implement new listing rules effective as of 7 June 2016.

The new rules update the end of the transitional period allowed for issuers to comply with new listing requirements, including corporate governance standards, to 3 October 2016. This will give issuers sufficient time to pass the necessary resolutions at their AGMs and Boards of Directors meetings in June-September this year.

New independence criteria for directors and new requirements for the company secretary have also been put back and will now come into force on 1 October 2017.

Additional listing requirements have also been set for certain securities:

  • The NAV of mutual funds other than real-estate funds must be now at least RUB 250 million. Funds already admitted to trading must have the NAV of at least RUB 150 million to be maintained until 1 October 2017;
  • The Exchange may determine self-regulated organisations of appraisers that cannot be used to list mortgage participation certificates backed with non-residential property.

The new rules provide more exemption options with respect to the requirement, which comes into force from 1 July 2016, to nominate a representative of holders of unsecured bonds to be admitted to Level 2 or Level 3 list.

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