Starting with November 10, 2014 will come into force a number of changes to the Bucharest Stock Exchange (BVB) Rulebook. These changes include the elimination of the provision that states that the current reports should be submitted by issuers only outside the trading hours, financial instruments will be no longer suspended from trading during issuer's General Shareholders Meeting, tiers 1, 2 and 3 for shares will be replaced by tiers Premium and Standard and there are new provisions adopted regarding the application of the Corporate Governance Code.
Once these changes enter into force, the issuers will be able to send current reports as soon as they are available to them, also during the trading session, but no later than 24 hours following the occurrence of the event in question.If during a trading session an issuer is to submit a release or a current report that contains information that could significantly impact the price or yield or investment decision, the BVB must be notified in advance at least five minutes before sending the release, respectively the current report.
The change of the BVB Rulebook – Market Operator, which aims to restructure the regulated market, is the replacing of the current tiers 1, 2 and 3 for shares with just two new tiers: Premium and Standard Tiers. Along with the general criteria that shares must meet for listing on the Regulated Market, the free float value for issuers that wish their shares to be admitted to the Premium Tier will have to equal at least EUR 40 million. Once the new structure enters into force, shares already admitted to Tier 1 and those that meet the upgrade requirements will promote to Premium Tier without any formality. Shares that do not met the requirements for Premium Tier and financial instruments currently admitted to Tier 2 and 3 will be automatically admitted to the Standard Tier.
The new amended Rulebook for Market Operators will also introduce a number of provisions relating to the new BVB Corporate Governance Code. All listed issuers are encouraged to comply with the new code. Following the entry into force of the new Rulebook, the issuers must submit to BVB a current report whenever they will be in a situation to not comply with one or more provisions of the Corporate Governance Code.
For issuers that comply with the Code of Corporate Governance, BVB may adopt measures to reward them, such as: reducing maintenance fees, including the issuers in a dedicated index, awards, promotion of the issuers during some events or publications etc. BVB will conduct analyzes on issuer’s compliance with the Code of Corporate Governance, and the results of these analyzes can be made public. The issuer shall include in the Annual Report a statement regarding their compliance with Bucharest Stock Exchanges’ Code of Corporate Governance.
Impact on investors: The Romanian FSA has approved a number of enhancements to the BVB Rulebook aiming to increase the visibility and liquidity of listed shares