The NSSMC has extended the deadline for issuers to disclose information about ties with foreign countries of the risk zone

After discussions with market participants and consideration of their proposals, the NSSMC (National Securities and Stock Market Commission) decided to extend until May 31, 2023 the deadline for securities issuers to provide information on the existence of connections with foreign countries of the risk zone.

In the process of preparing information regarding business relations with the aggressor country and its satellites, the issuers had questions that needed clarification. The NSSMC specified certain aspects regarding the content and form of such information and, in order for the participants to be able to prepare complete and correct information in accordance with the requirements, extended the deadlines for its submission.

«The NSSMC obliged the issuers to disclose information on whether there are persons from the aggressor country and its satellites in the ownership structure, among officials, as well as counterparties and clients. The submission of data in the last category caused the most questions, so we provided the necessary clarifications and changed the disclosure terms for the convenience of issuers. We expect that the obtained data will help to more effectively counter the aggressor on the economic front and identify those who try to evade sanctions. The investment security of our country now occupies a key place», said Maksym Libanov, a Commissioner.

As a reminder, issuers of securities must provide information on the existence of ties with foreign countries of the risk zone from 01.01.2021 to 31.12.2022, namely:

– the russian federation,
– the Republic of Belarus,
– the Islamic Republic of Iran,
– Democratic People’s Republic of Korea.

However, the requirement does not apply to:

– investment certificates,
– shares of CIFs (corporate investment funds) that have concluded contracts on asset management of such CIFs with asset management companies,
– issuers of local loan bonds.

If the issuer does not have relations with such foreign countries of the risk zone, this is noted in the form intended for disclosure of information and is also submitted to the regulator.

The Resolution enters into force the day after its publication. You can familiarize yourself with the text at the link.