OREANDA-NEWS The Government Commission for the Control of Foreign Investments has appointed the "Investment Chamber" as the organizer of the exchange of blocked foreign securities of Russian investors for non-resident funds in type "C" accounts, according to materials on the website of the Ministry of Finance of the Russian Federation.

According to the message of the Investment Chamber, the acceptance of applications from resident individuals will begin at 10:00 on March 25, Moscow time and will end at 19:00 on May 8. Non-residents will be able to apply from 10:00 on June 3 to 19:00 on July 5. Settlements within the framework of the asset exchange are due to take place on July 29.

The deal on the repurchase of foreign securities will consist of four stages.

At the first stage, Russian investors, through their brokers, trust managers or management companies of mutual funds, must send irrevocable requests to the Investment Chamber for the sale of blocked securities. No commissions or other payments will be charged to sellers.

Residents can submit for redemption securities with a total initial value of no more than 100 thousand rubles. The initial value of each paper in the application will be determined in rubles at the exchange rate of the Bank of Russia based on the closing price of trading on March 22, 2024.

At the second stage, the auction organizer will form a single pool from the securities submitted for redemption and divide it into lots that are as identical in content and value as possible. Then he will set a single starting bid for all lots, which cannot be less than the average value of all lots.

At the third stage, non-residents will send bids to the auction organizer for the purchase of lots for rubles at a price not lower than the starting bid. They will be able to withdraw the application only to improve the price conditions.

At the fourth stage, the Investment Chamber, as a result of the competitive selection of applications from non-residents, will determine a single final sale price for all lots, which will not be lower than the starting bid. If the applications of non-residents are approved, the securities will be transferred to their special transit depot accounts, which allow the acquired assets to be transferred from the Russian depository infrastructure to a foreign one without additional permits from Russia. The funds for these securities, in turn, will be transferred to the accounts of brokers, trust managers or mutual fund management companies for further transfer to resident individuals.

Unsold securities are not debited from the accounts of the depots of their owners, and the funds of non-residents unused in the redemption in this case are returned to their ruble accounts (including accounts of type "C").