The Central Bank is discussing the introduction of a limit on the minimum proportion of free float shares of public companies. According to the head of the regulator, Elvira Nabiullina, this participation of many companies is insignificant, which, under certain circumstances, allows them to “easily move the market.”
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The Bank of Russia allowed the introduction of a minimum threshold for the proportion of floating shares of public companies. The president of the Central Bank, Elvira Nabiullina, spoke about this.
A limit may be introduced when the shares of a company are admitted to organized trading. According to Nabiullina, the Central Bank sees negligible free-float even among companies that have just entered the market.
With a negligible market capitalization and a low level of free shares outstanding, the company has the opportunity to “easily move the market,” the head of the Central Bank noted.
In August 2023, the Moscow Stock Exchange reduced the minimum free float threshold for shares of the second trading level from 10% to 1%.
Author:
Kirill Bilyk
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
