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MIL OSI Translation. Region: Russian Federation –

Source: Central Bank of Russia – Central Bank of Russia (2) –

Updated: 03/11/2024

The process of redeeming blocked securities consists of four stages.

Stage 1. The trading organizer collects applications from Russian private investors through their brokers, trustees and mutual fund management companies. Each private investor can present for redemption securities with a total value of no more than 100 thousand rubles.

Stage 2. The trading organizer will form a common pool of securities from all received and verified applications. Next, it will be divided into separate lots, as identical as possible in terms of the composition of securities and total cost. Afterwards, a single starting bid is established for all lots, which cannot be less than the average cost of the securities included in each lot. Information about these lots will be published on the website of the auction organizer.

Stage 3. The auction organizer collects applications from non-resident buyers for the generated lots.

Stage 4. Based on applications received from non-resident buyers, the auction organizer will determine a single final sale price for all lots. The securities will be sold at no less than the initial value determined as of March 22, 2024. The actual selling price will be determined after receiving applications from non-residents and will depend on actual demand and market conditions. After the auction is completed, settlements will be made.

In case of incomplete repurchase, the sellers’ requests will be partially satisfied.

Based on the results of the auction/redemption, the auction organizer will transfer funds to brokers, trustees and mutual fund management companies through which the offers were submitted, in rubles. Next, brokers and mutual fund management companies will transfer these funds to the accounts of their clients.

At the same time, the auction organizer transfers the purchased securities to non-residents into special transit securities accounts – this is a new type of account through which non-resident buyers can withdraw assets to a foreign depository without additional permissions from the Russian Federation.

Securities of resident individuals whose applications were not satisfied or were partially satisfied are not written off from the owners’ accounts, and the money of non-residents whose applications were not satisfied is transferred to type “C” accounts. Provided that this money was initially in type “C” accounts.

Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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