How to avoid mistakes during the registration of the securities issue: recommendations of the Bank of Russia

The Bank of Russia has updated the recommendations for issuers on how to avoid common mistakes when checking releases. Updated recommendations will make it easier for issuers fulfillment of the requirements of the new law on simplification of issue of securities and the new edition of the standards of issue of securities.

Prepared by the regulator, the material provides answers to frequently asked questions: when is it necessary to submit the decision on the securities issue, what is the document containing the conditions of occupancy, and when it is necessary to imagine how to specify information about the rights on the shares in the decision on their issue that you need to pay attention in the case that the decision to place securities is made by the Board of Directors.

In addition, it dismantled the typical errors in the description of the procedure for the acquisition of shares pre-emptive rights, specify the conditions that must be considered in making the payment for the shares of the state property, the list of documents to be submitted if the shares were paid by setoff of monetary claims to the Issuer, described how to specify the method of placement of shares in the reorganization, as well as this explanation, in which case it is impossible to amend the decision on share issue.

The Bank of Russia constantly improves the procedure of registration of issues of securities: removes excessive administrative barriers, eliminates redundant and duplicate information in the offering documents to attracting investments through issuance of securities became available not only for large companies but also for companies with smaller turnovers. The proposed guidelines complement this work, helping companies, particularly new issuers, to avoid errors due to which registration of the securities issue may be delayed.

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