Following the enactment of new listing rules on June 9, 2014 Rosneft shares are listed in Moscow Exchange’s First (top) Tier quotation list.
In line with the new rules, an updated list of securities listed at the Moscow Exchange was put together that now includes 3 tiers. The first (top) tier includes securities that were listed in A1 and A2 lists before June 9. The second tier is comprised of securities that used to be included in lists B, V and I. The third tier includes securities that used to be part of the Unlisted Securities and Securities Adopted for Placement lists.
The key novelties that this reform brings about are the introduction of free float as one of the indicators and the requirement to provide IFRS statements for the past three years instead of one year for first tier listing. In addition, new stricter requirements for corporate governance quality are put in place in line with the Corporate Governance Code developed by the Bank of Russia. In particular, to be included in the top tier listing, issuers now need to have at least 20% of independent directors in their Boards of Directors with the overall number of independent directors being at least three. The issuer’s Board of Directors now has to set up its Audit, Compensation and HR Committees comprised mostly of independent directors.
Source: Rosneft, 2014.