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. Last Updated: 07/27/2016

Securities Law Finally Signed

President Boris Yeltsin has signed a wide-ranging securities market law after its completion of a long and tortuous path through the Russian parliament, the presidential press service said Tuesday.


The law, signed Monday, seeks to prevent a reoccurrence of financial scandals, such as the MMM pyramid scheme, by prohibiting companies that issue securities from quoting or trading their own shares, while depositories will be forbidden from acting as brokers.


Yeltsin had vetoed the law last year, citing lax provisions in some areas, and the Federation Council turned down a revised version last December. But an amended bill cleared the State Duma earlier this year and was approved by the Federation Council April 11.


The law names the Federal Securities Commission as the main regulatory body on the equities market. It will license market participants and draw rules for public offerings of securities, as well as specify what information must be disclosed to investors.