Translartion. Region: Russians Fedetion –
Source: Central Bank of Russia –
The Bank of Russia, together with the Moscow Exchange, launched shareholder value creation programIt is addressed to Russian public joint-stock companies and is aimed at increasing their investment attractiveness, increasing capitalization and supporting best corporate practices.
The program provides for the creation of a benchmark – a group of issuers capable of growing at an accelerated rate and thus acting as a driver of capitalization of the entire stock market. Issuers whose shares are included in the first and second levels of the Moscow Exchange listing can participate in the program. Their securities will be included in the calculation base of its new stock index. It will become a useful benchmark for the market and a guide for investors on which securities are best to invest in. Based on the index, professional participants will be able to form collective investment funds, as well as index strategies for trust management.
The applications of candidates will be reviewed by a committee consisting of representatives of the Moscow Exchange, the Bank of Russia and the Analytical Credit Rating Agency. They will assess the effectiveness of corporate governance, the level of information transparency of the issuer and its financial and economic indicators. The status of the program participant will need to be confirmed at least once a year.
Vladimir Chistyukhin, First Deputy Chairman of the Bank of Russia:
“We will consider the program’s implementation successful if we achieve two results. First, the number of its participants will grow, which implies the dissemination of best practices in the market. Second, the share of the program participants’ value in the total market capitalization will grow. We believe that the launch of the program will not only stimulate demand for equity instruments. We expect that investors will view the shares of benchmark issuers as attractive objects for portfolio investments. We will be glad if representatives of various industries join the program, as well as those who have recently held an IPO or are preparing for an initial placement.”
Viktor Zhidkov, Chairman of the Board of the Moscow Exchange:
“Over the long term, the market grows primarily due to high-quality issuers. It is wonderful when such issuers become more numerous, and the process of their emergence is orderly and transparent. This can be facilitated by a number of procedures and instruments that the Bank of Russia and the Moscow Exchange have tried to combine within the framework of the shareholder value creation program. Discussing how best to broadcast the new benchmark to the market, we came to the conclusion that the launch of a separate stock index is preferable to marking or creating a separate sector. Thus, the issuer will receive the status of a program participant precisely after the official inclusion of its shares in the calculation base of the new index. I hope that the market will appreciate our initiative, and the criteria for inclusion in the corresponding index will become a guide for a wide range of issuers.”
Applications from issuers to participate in the program will be accepted from March 31 to June 15, 2025, inclusive.
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