On guard: The NSSMC has included new issuers to the list of those with the signs of fictitiousness

The NSSMC approved a number of resolutions to include three joint stock companies to the list of issuers with the signs of fictitiousness and stopped the circulation of their securities. It is about:

• PJSC «Z.G.POSTACH»;
• JSC «CHORNOMORSKA TRANSPORTNA KOMPANIIA»;
• PRJSC «IC «ONE CLICK».

«We continue to work to identify violations in the activities of companies in the capital markets. The issue of the quality of instruments is always on time, because, unfortunately, there are still unscrupulous companies on the market that violate the rules and legal norms,» said Ruslan Magomedov, Chairman of the NSSMC.

Based on the regular annual information available to the NSSMC for 2018-2020 and the report on financial condition, the NSSMC conducted a thorough analysis of compliance with the criteria of fictitiousness of issuers of securities, and identified the following violations:

– failure to hold a general meeting of shareholders for two consecutive years, or failure to form governing bodies within one year from the date of registration by the NSSMC of the report on the results of private placement of shares among the founders;

– the average monthly salary for the reporting period is less than the minimum wage established by law;

– fixed assets, or unfinished capital investments, or investment real estate, or deferred tax assets, or money and their equivalents, etc. – make up less than 25% of the issuer’s assets as of the end of the reporting period;

– lack of net income from sales as of the end of the financial year, and for insurers – the amount of net earned insurance premiums (except for life insurance insurers).

Two of these joint-stock companies meet at least three of the above signs of fictitiousness, and one insurance company – at the same time two signs, which is the basis for inclusion to the list of issuers with the signs of fictitiousness.

It will be recalled that this list is an open and accessible database, which includes issuers who do not comply with or intentionally violate the established norms of current legislation in their activities. The issuer may be excluded from the list if it submits to the regulator documents confirming the elimination of the grounds for recognizing it as having signs of fictitiousness. The NSSMC forms, maintains and amends the list electronically and publishes it on the official website.