The Central Bank of the Russian Federation expanded the list of insider information – Sergey Vodolagin quoted by RBK business edition

On January 16 the Central Bank of the Russian Federation published a direction, significantly expanding the list of information regarded as insider information.

The above list includes information on criminal proceedings initiated against the companies’ management, information on the assets arrested by court in the process of interim measures, information on the failure to fulfill obligations under the subordinated bank bonds, as well as information on the decisions taken by the employees of management companies, having significant market impacts.

The above changes will benefit the protection of the shareholders’ and investors’ rights connected with the information disclosure, including possible adverse circumstances connected with the issuer.

At the same time, experts indicate certain gaps in the Central Bank’s direction. Westside law firm partner Sergey Vodolagin says that one of such gaps relates to the Central Bank’s failure to indicate measures taken in foreign jurisdictions as insider information. “Assets of Russian issuers or controlling organizations may be located abroad; the arrest of such assets will certainly influence the companies’ value, as well as the value of their securities”, - says Vodolagin.