Ukraine: Ukraine updates the procedure for the admission of foreign securities to the Ukrainian market

In brief

By Decision No. 34 dated 21 January 2021 ("Decision No. 34"), the National Securities and Stock Market Commission of Ukraine ("Securities Commission") adopted a new regulation on the admission of securities of foreign issuers for circulation in Ukraine. Decision No. 34 came into effect on 6 April 2021 and replaced the existing regulation, which was adopted in 2012.


Contents

In more detail

Decision No. 34 updated the existing admission procedure as follows:

  1. It expanded the list of foreign stock exchanges where eligible securities should be admitted to trading prior to: (i) their admission for circulation in Ukraine or (ii) being included in the assets of a mutual investment fund.  Such stock exchanges now include the London Stock Exchange and Japan Exchange Group, Inc.
  2. It permitted a domestic professional stock market participant (in addition to a foreign issuer and a central securities depositary) to file an application for admission to circulation of foreign securities in Ukraine.
  3. It introduced a procedure for the admission of securities that are included in stock indices (i.e., S&P 500, NASDAQ 100, FTSE 100, DAX, CAC 40 and Nikkei 225). The Securities Commission is now empowered to admit securities included in the specified stock indices.
  4. It prohibited admitting securities if the issuer is registered in a state carrying out an armed aggression against Ukraine as defined by Ukrainian law and/or if the issuer is directly or indirectly controlled by persons who are residents of such a state.
  5. It conferred power on the Securities Commission to maintain the register of admitted securities.

Key takeaways

The applicants that facilitated the admission of foreign securities for circulation in Ukraine are not required to take any action following the adoption of Decision No. 34 vis-a-vis the relevant admission. Foreign securities, the admission of which will be facilitated now, may benefit from a number of new features compared to the old regime, as indicated above. 

Contact Information

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.