Investors can now trade shares in 33 of 50 companies listed on the Moscow Exchange Russia Index, the Bank of Russia has said. (iStock.com/yulenochekk)
"There will be a ban on short-selling of the said securities," the central bank said. Traders used short-selling as a tactic to bet against a stock that they believe will decline in value.
The central bank suspended share trading on Feb. 25 to protect the bourse from a selloff after sanctions were imposed by Western governments. The measures, a response to President Vladimir Putin's invasion of Ukraine, sought to cut off Russia's financial system.
Foreign investors are still banned from selling Russian securities as the country attempts to stem the flow of capital out of the country after sanctions blocked access to assets held abroad.
The Bank of Russia also said on Wednesday that it will keep stocks of multinational companies with a Russian presence on Moscow's bourse — even if they lose their listings on exchanges abroad.
"The implementation of these measures will allow foreign issuers, including those having a major part of their business in Russia, and unit investment funds whose securities are on the Russian stock exchange list to maintain the listing and the current level of listing," the central bank said.
The Central Bank of the Russian Federation, as it is also known, has also pushed a key benchmark interest rate to 20% from 9.5% at the end of February to help stem the ruble's decline. It said last week that it will maintain the rate.
Britain has given investors until May 2 to dump their derivatives and securities repurchase agreements issued by Russian government institutions.
--Editing by Ed Harris.
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