New Listing Rules, Requiring The Observance Of The Code Of Corporate Behaviour, Came Into Force On MICEX On 1 February

The new rules of listing and access to the distribution and circulation of securities came into force on the MICEX on 1 February. They require issuers to observe the Code of corporate behaviour and provide reports in compliance with the International Accounting Standards. Besides, the rules enable the circulation of investment trusts' units.

After the introduction of the new listing rules, the number of securities, listed on the MICEX, grew by 50% and reached 142 securities of 65 issuers. Over 90 securities of 30 issuers are on the MICEX "A" quotation list of the 1st level (the MICEX's highest listing level). Trades are held on the MICEX in 289 corporate securities of 162 issuers.

The new listing rules provide for the new structure of securities, traded on the MICEX, as well as new listing requirements. The rules provide for a three-level structure of listing, which stipulates the following segmentation of corporate securities, traded on the MICEX:

1. The MICEX listing structure:
   • the MICEX "A" quotation list of the 1st level (before - quotation list of the 1st level);
   • the MICEX "A" quotation list of the 2nd level (before - quotation list of the 2nd level);
   • the MICEX "B" quotation list (before - out-of-list securities).
2. The out-of-list sector (securities, which can be traded on the MICEX, but which are not put on quotation lists).

The rules stipulate the following listing requirements:

Requirement	"A" quotation list of the 1st level	"A" quotation list of the 2nd level	"B" quotation list
one person and/or affiliated persons own not more than 75% of common nominal shares of the issuer (when putting on quotation list)			does not exist
size of issuer's net assets not more than	500 million rubles	50 million rubles	does not exist
market value/ estimated value of issues of securities not less than	for shares - 300 million rubles; for bonds - 30 million rubles; for investment trust units - 3 million rubles	for shares - 300 million rubles; for bonds - 30 million rubles; for investment trust units - 3 million rubles	does not exist
issuer's history not less than	3 years	1 year	does not exist
number of issuer's shareholders not fewer than	1 000	500	does not exist
issuer's loss-free balance	during 2 out of 3 years preceding application	during 2 out of 3 years preceding application	does not exist
issuer's observance of Code of corporate behavior	observes all provisions of Code	observes provisions of Section 7 of Code	does not exist

A new requirement for putting securities on "A" quotation list is the issuer's observance of the Code of corporate behavior, recommended by the RF Securities Commission.

To have their securities put on the MICEX "A" quotation list of the 1st level, issuers must observe all provisions of the Code, while to have their securities put on the MICEX "A" quotation list of the 2nd level, issuers must observe the provisions of Section 7 of the Code, dealing with information disclosure.

Besides, the new listing rules require to issuers to provide the MICEX financial reports, prepared in compliance with the International Accounting Standards. The rules say that "if an issuer, whose securities are put on the MICEX "A" quotation lists of the 1st and 2nd levels, prepares financial reports in compliance with the IAS or GAAP, the applicant must provide the MICEX the said reports for the last calendar year and as of the last reporting date".

The new listing rules, introduced in compliance with the RF Securities Commission's normative documents, emphasize issuers' transparency.