Central Bank ready to participate in development of RDR system

The Central Bank of Russia is ready to participate in the development of the mechanism for Russian depository receipts (RDRs). Central Bank First Deputy Chairman Andrei Kozlov voiced this opinion at the Fifth Russian National Conference of Professional Participants of the Securities Market today. Depository receipts are securities certifying rights to foreign securities. They are among the most popular instruments in international practice, by means of which foreign securities are traded on the domestic stock market. This instrument does not exist in Russia now.

According to Kozlov, the Russian government and the Central Bank are considering questions of liberalization of currency regulations, including the procedure for investments in Russia for non-residents. In Kozlov's opinion, RDRs will allow the attraction of investments for a longer term, and this is the most preferable method to be used during the liberalization of the investment procedure for non-residents.

The Central Bank deputy chairman remarked that there were a lot of problems with the launch of this mechanism now, including problems dealing with underdeveloped legislation. In the event that the Russian government makes a principal decision to introduce this instrument, "the Central Bank of Russia is ready to officially support this idea and to take active part in the formation of a task group for this issue, if it is to be formed." Kozlov underlined that this was not an official position of the Central Bank but his personal opinion as an expert.

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