Duma Ready To Limit Foreign Share In Companies Operating On Russian Stock Market

Amendments to the Federal Law on the Securities Market have been prepared in the State Duma to limit participation of foreigners in companies operating on the Russian stock market, Vladimir Tarachyov, deputy chairman of the State Duma Committee on Credit Organizations and Financial Markets, said at the conference Russian Financial Institutions today. According to him, among other measures, it is suggested to introduce a general quota on foreign shares in companies professionally operating on the stock market, similar to the regulations existing in the banking system. Additionally, for certain kinds of operations, it is planned to impose a 49% limit on foreign participation in capitals of specific companies, such as registrar's offices and depositories. It is also planned to impose restrictions on the volume of assets of unit investment trusts managed by companies with foreign capital. According to Tarachyov, these amendments have been suggested in connection with Russia's future membership in the World Trade Organization. In the deputy's view, Russia's position at the negotiations on joining the WTO does not adequately reflect the interests of participants of the stock market. Many segments of this market have not been formed yet, and they cannot stand foreign competition. These amendments are particularly important against the background of the pension reform, which provides for investing substantial pension reserves in stock market instruments. At the same time, these amendments are rather controversial, the deputy underlined.