Draft listing rules mandate dual valuations and credit ratings
The Bank of Russia has published a draft regulation updating requirements for admitting securities to organised trading. The proposed rules mandate minimum initial public offering sizes, independent analyst valuations, and dual credit ratings for listed issuers.
Dual valuations and rating mandates
Under the proposed framework, the Bank of Russia sets minimum initial public offering sizes for quotation lists, with the required proportion of traded securities tied directly to the issuer's equity capital.
To protect investor interests and ensure fair pricing, companies planning an IPO must invite at least two independent analysts to assess their fair value prior to listing.
Following the offering, issuers will be required to obtain share ratings from two credit rating agencies.
Additionally, the draft formalises corporate governance standards by defining strict independence criteria for board members, setting minimum counts for independent directors, and mandating specific board committees.
Centralised data on exchange portals
The regulatory update builds on market practices that have demonstrated effectiveness in recent years.
Beyond governance and valuation mandates, the regulation aims to enhance market transparency by centralising key issuer information.
Stock exchanges will be required to publish standardised issuer and security registration cards directly on their websites.
Furthermore, exchanges must maintain a publicly accessible calendar of upcoming public offerings to ensure equal access to information for all market participants.
Protection at the cost of liquidity
Mandating double analyst valuations and credit ratings creates heavy friction for prospective issuers.
While these safeguards aim to protect retail buyers, they risk choking off access to primary equity capital.
Formal compliance rules alone cannot rebuild confidence in a severely constrained listing environment.