More permitted securities transactions: NSSMC continues to regulate markets in wartime

The NSSMC (National Securities and Stock Market Commission) has once again amended Resolution №144 of March 8, 2022, which regulates operations in capital markets during martial law.

The NSSMC has admitted to circulation securities with the international identification codes UA4000196513 and UA4000196521.

The NSSMC allowed to conduct transactions with securities in order to:

 ⁃ support of liquidity by the National Bank of Ukraine of the Deposit Guarantee Fund of individuals;

 ⁃ compulsory seizure of the objects of property rights of the Russian Federation and its residents in Ukraine.

Activities of depository institutions

The NSSMC allowed the depositary institutions and the Central Depository to:

⁃ carry out administrative operations to close securities accounts;

⁃ to carry out operations of transfer of securities, rights to securities related to the establishment or removal of restrictions (blocking/unlocking operations) on the circulation of securities;

⁃ carry out activities related to the termination of the activities of depository institution, subject to compliance with the requirements established by the NSSMC.

Activities of collective investment institutions

The regulator has opened the possibility for collective investment institutions (CIIs) to conduct operations with promissory notes that have been avalized by the bank.

The NSSMC has established that the payment of income on CII securities should take into account the assets of CII, formed on February 24, 2022.

The NSSMC clarified that asset management companies acting in the interests of venture CII and have agreements with developers concluded before February 24, 2022, may carry out operations provided for in the contracts at the expense of the assets of such CII. The list of areas on the territory of which the relevant construction can be carried out currently includes:

Vinnytsia region;

Volyn region;

Transcarpathian region;

Ivano-Frankivsk region;

Lviv region;

Ternopil region;

Rivne region;

Khmelnytsky region;

Chernivtsi region;

Zhytomyr region;

Poltava region;

Chernihiv region;

Cherkasy region,

Kirovohrad region.

Restrictions on activities

The NSSMC prohibited professional participants whose licenses were suspended during martial law from conducting operations from the date of their suspension.

The Resolution of the NSSMC comes into force from the moment of its publication on the official website of the NSSMC. You can read it at the link.