The Bank of Russia streamlined the participation of non-state pension funds in IPOs.

Non-government pension funds (NPFs) will be able to purchase shares of the issuer during an initial public offering (IPO) if the total volume of the placement on organized trading is at least 3 billion rubles. Previously, the threshold for funds’ participation in IPOs was estimated at 50 billion rubles.

The directive from the Bank of Russia regulating the investment of pension reserves will come into effect on October 13, 2024. A similar procedure is already in place for pension savings.

At the same time, the share of stocks that NPFs will be able to purchase has increased from 5% to 10% of the total placement volume.

In addition, funds are allowed to acquire certain derivative financial instruments in the over-the-counter market with a central counterparty using pension reserves.

The new regulations expand the investment opportunities for NPFs. In turn, the participation of institutional investors in IPOs will stimulate public offerings of shares in the Russian market.

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