MOSCOW, June 6 (RIA Novosti) - The Russian Federal Financial Markets Service will toughen regulations of Russian companies' entrance to foreign markets.
Service head Oleg Vyugin said that the service would submit a draft law on these regulations to the Russian government in June 2005.
In compliance with the draft law, a foreign company will need a permission of the service to issue its securities if it has not less than 75% of its assets in Russia. These novelties will work if the service exchanges information with relevant bodies of other countries, Vyugin added.
Today it is possible to avoid the service's demand of compulsory listing of Russian companies' securities on the Russian stock exchange if they enter foreign capital market, he said. Some companies make use of this possibility placing their depository receipts via subsidiary foreign structures.
