Moscow Exchange may restrict citizens’ access to a number of securities

The Bank of Russia may separate in the quotation lists the securities of companies that do not fully disclose information about themselves. Unqualified investors may be required to take tests to purchase such securities. Kommersant’s sources admit that such assets, in principle, will be made available only to qualified investors. According to analysts, the share of companies that fully disclose their reporting in the Moscow Exchange Index (MOEX: MOEX) does not exceed half.

As the Central Bank told Kommersant, the regulator is discussing with market participants the possibility of separating in the quotation lists the securities of companies that do not fully disclose information about themselves. This is necessary so that investors can assess their risks when making decisions regarding certain issuers, the Bank of Russia explained.

As the Central Bank notes, a situation has developed in the market where many companies whose securities are included in the quotation lists of Russian exchanges do not disclose information that is sensitive to investors, including on the basis of adopted regulatory relaxations. “However, the presence of securities in quotation lists is traditionally considered by investors as a sign of the issuer’s quality, including from the point of view of information transparency,” the Central Bank emphasized.

In particular, according to Kommersant, the regulator discussed this idea with the Russian Union of Industrialists and Entrepreneurs. Proposed approaches include, for example, limiting the ability of unqualified investors to purchase securities of issuers with incomplete disclosure. To do this, it is necessary to change the provision of the Central Bank No. 534-P and amend the law on the securities market.

The share of companies that fully disclose their reporting in the Moscow Exchange index does not exceed 50%, says independent analyst Andrei Barhota: “Among the issuers that may not fully disclose their reporting are, for example, VTB, Bank St. Petersburg, Aeroflot, Rostelecom.” , OGK-2, Mosenergo, TGK-2, Acron, NKNKh, PIK, Surgutneftegaz, Inarctic.

Mr. Barhota noted that even the most transparent issuers “publish abbreviated or enlarged statements that do not detail sensitive balance sheet and income items.” Everything related to currency, blocked assets, and so on is not disclosed, he emphasizes. Some issuers do not publish reports at all, only small press releases, the analyst clarified.

“The logic of the Central Bank is clear – if a company stops disclosing key information about itself, its purchase is associated with increased risk,” says one of the brokers. “An investor is not buying a share in the business, but a name or schedule.” At the same time, according to Kommersant’s interlocutor, “issuers do not always justifiably go into darkness; some may simply find it convenient to refuse to disclose.” He assumes that the securities of such issuers will ultimately be available only to qualified investors.

The lack of information does not allow investors to make informed investment decisions; this can lead to their financial losses, notes Dmitry Lesnov, head of the client service development department of Finam Financial Group. Market analysts are also forced to make their conclusions “based on rumors and indirect information,” which certainly reduces the quality, adds Sergei Rybakov, chief operating officer of Go Invest. “Perhaps as a result, a reduction in demand from investors will encourage companies to return to full publicity,” believes a Kommersant source at the brokerage company.

However, the Central Bank’s initiative also has risks, experts say. If the shares of such issuers are moved to another level of listing, then almost nothing will change for private investors – the trading process will be the same, Mr. Rybakov warns. If a separate list is created for such issuers (board in the terminology of the Moscow Exchange), he clarifies, this could greatly affect trading turnover.

Ksenia Kulikova