The Russian State Duma will consider a draft law, which shall set several thresholds on transactions with voting shares of professional securities market participants, clearing institutions, stock exchanges, pawnshops, microfinance organisations, management companies, insurance companies, except of mutual insurance companies.
According to the draft law, transactions with voting shares exceeding the following thresholds require prior approval from the Central Bank of Russia (CBR):
- Acquisition of more than 10% of the Financial institution voting shares;
- Establishing direct or indirect control over 50% of voting shares of a shareholder who already owns more than 10% of the Financial institution = voting shares
In case the shares were purchased during an Initial Public Offering, investors have to get a subsequent approval of the completed transaction by CBR. The prior or subsequent consent shall be deemed approved if no response is received from CBR within 30 days.
Impact on investors: The draft law will contribute to protect the rights and the interests of Financial Institutions` shareholders.