Federal Securities Service Works Out New Mechanism
OREANDA-NEWS. September 21, 2009. The Federal Securities Service (FSS) is working out a new mechanism for replacing depositary receipts issued on stocks of Russian businesses which will allow Russia’s No. 1 lender Sberbank to bring its long-time dream to reality and place global depositary receipts (GDR).
“We’re looking for a solution so that Sberbank becomes able to issue depositary receipts,” FSS head Vladimir Milovidov told the media. Sberbank has long nursed the idea of breaking onto the London Stock Exchange with GDRs in order to bolster the liquidity of its securities. Initially Sberbank planned to float GDRs in February 2008 and the lending institution emphasized it is not going to buy back stocks on the market or from its shareholders, or also has no plans to stage an SPO for the GDR program.
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