The Bank of Russia recommended that companies disclose more information during IPOs. For example, about the exact distribution of shares during the placement and shareholders who agreed not to sell securities for some time after the IPO. The application of the recommendations will increase confidence in the market, considers the Central Bank.
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The Central Bank of the Russian Federation recommended that Russian companies conducting IPOs disclose more information to investors. The list of recommendations is presented on the Bank of Russia website.
The advisory letter is also addressed to professional stock market participants and brokers.
The regulator asks, in particular, to report on the distribution of shares for the IPO (allotments) so that investors can evaluate how many shares they can count on.
It is also recommended that issuers disclose shareholders who have committed not to sell shares temporarily after the IPO, and indicate the duration of this commitment.
The Bank of Russia noted that the implementation of the recommendations will increase confidence in the Russian stock market.
Author:
Kirill Bilyk
Source: RB
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