Speaking at a national conference of professional securities market participants, Bembya Khulkhachiyev said the volume of securities permitted for placement would be reduced.
Earlier, Russian companies could float from 60% to 80% of their charter capital on foreign markets. Today, they can place 40% of their authorized stock abroad and the FFMS wants to reduce this volume further, Khulkhachiyev said.
"We intend to tighten requirements so that securities can be traded on the domestic market without leaving it," he said.
An issuer can withdraw only reserve stocks from the domestic market while keeping its securities in free circulation inside the country because their amount is extremely small," Khulkhachiyev said.
Most frequently, securities offered for placement abroad belong to the management of companies. Today, Russian issuers normally place 3%, 5% and 10% of their stocks on foreign trading floors, but, actually, all of them file applications for placing up to 40% of their stock," Khulkhachiyev said.
