The VERBA LEGAL team — partner Alexander, counsel Evgenia Zainchukovskaya, senior lawyer Andrey Sheptiy, and lawyer Ivan Dubrovsky — prepared an alert on the Bank of Russia's draft instruction eliminating unjustified tax burden for IPO investors.

The Bank of Russia proposed new procedures for determining securities market prices, replacing current rules established by the 2010 FSFM Order. The key innovation: recognizing actual IPO placement prices or first-day SPO acquisition prices as market prices. This eliminates situations where market prices were calculated without bookbuilding orders, potentially creating taxable benefits for private investors.

The new methodology prevents unjustified taxable income from arising during IPOs and SPOs, making public offerings more attractive to private investors.

Read the full alert for details.