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The Bank of Russia restricted speculative transactions in the stock market

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THIS MESSAGE (MATERIAL) IS CREATED AND (OR) DISTRIBUTED BY A FOREIGN MASS MEDIA PERFORMING THE FUNCTIONS OF A FOREIGN AGENT AND (OR) A RUSSIAN LEGAL ENTITY PERFORMING THE FUNCTIONS OF A FOREIGN AGENT.

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The Central Bank of the Russian Federation has decided to limit some speculative transactions in the stock market in order to maintain financial stability.

As follows from the message on the website of the Bank of Russia, the regulator has recently “revealed cases when brokers offer their clients to purchase securities from non-residents in foreign jurisdictions with promises to transfer such assets to Russian depositories.”

In this regard, the Central Bank “draws the attention of investors to the risks that they face when participating in transactions offered by brokers.” “Investors will not be able to freely dispose of the purchased securities, and there are no guarantees of obtaining the expected financial result,” explains the Bank of Russia.

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He decided to introduce restrictions, according to which, in particular, depositories and registrars will not be able to conduct transactions with securities credited from the accounts of foreign depositories or authorized holders for 6 months, with the exception of securities purchased before March 1, 2022.

In addition, the semi-annual “quarantine” includes securities that were purchased by non-residents from friendly countries and controlled foreign companies (except residents of the Republic of Belarus) from other non-residents in the period from June 25, 2022 until the date of reclassification of a type “C” depo account into regular depo account. In addition, depositories are required to keep separate records of such assets.

Recall also, on August 4, the Central Bank of the Russian Federation announced its intention to contribute to the acceleration of devaluation, in connection with which it plans to introduce additional measures aimed at reducing banking operations in dollars and euros.

The regulator published a document in which it invited market participants and the expert community to discuss key areas for the development of the financial market in the face of sanctions restrictions. The material contains 14 sections and defines the tasks that the regulator will have to solve together with the Russian government and market participants.

Source: Rosbalt

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