Undeveloped stock market threatens development of Russian companies

Underdeveloped stock markets will soon become an obstacle to business operations of Russian companies. Roger Munnings, the head of the KPMG office in Russia, voiced this opinion during a news conference, organized by RBC, today. According to him, Russian companies need resources for investments, and stock market operations are one of the most efficient methods of receiving them.

Firm guarantees of security of doing business are necessary for development of markets, Munnings remarked. He underlined that the work of the Federal Securities Market Commission of Russia was facilitating the provision of further guarantees for investors.

The KPMG official disagreed with the opinion that the Russian market was presently "overregulated." Having admitted the necessity of maintaining a reasonable balance between prevention of market manipulation and a liberal climate, he underlined that in terms of security guarantees for investors "the pendulum has not yet reached its extreme point." Munnings believes that the control of market participants is reasonably limited in Russia.