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General information about IGC Sector
The goals of the project for creation of the sector for Innovation and Growth Companies (IGC) are the formation of conditions for effectively attracting investment into the innovative and rapidly growing sectors of economy by small and medium size companies, creation of conditions for numerous IPO's of these companies, and promotion of venture financing in the country.
Since the 27th of June 2006 a new edition of Listing, Admission and Circulation Regulation has been implemented in the MICEX SE. The Regulation was registered by FSFM of Russia on the 15th of June 2006 and it envisages foundation of the Innovation and Growth Companies sector. The new edition of the regulation also includes requirements and features of the mechanisms concerning admission of securities and their circulation in the IGC sector.
According to the new edition of the listing regulation, the IGC sector is allocated a place within the framework of the traded securities list. Placement of securities in the IGC Sector is presumed together with their inclusion in the Quotation List or in the Non-listed Securities Register with access to circulation in the Sector.
The following criteria for the admission of issuers to the IGC sector are defined by the listing regulations:
- The major part of issuer's proceeds must result from activity in the branches that are connected with the use of innovative and high technology.
- Issuer's capitalization must be not less than 100 million rubles and should not exceed 5 billion rubles.
Compliance of the issuer with regulations is determined by the Expert Council of MICEX SE, which consists of specialists who have experience in working with high tech companies, and at the same time priority will be given to the following companies:
- Companies operating in the sphere of telecommunications, Internet business, software development and installation, development and production of semiconductor devices, biotechnologies, research and development, and companies operating in sectors that are related to the implementation of national projects;
- Companies with the growth rates not less than 20% as of the end of the financial year.
The Sector will have stricter requirements concerning information disclosure, in addition to standard documentation, and a data and information package (for Quotation Lists and Non-listed Securities Register) the company will have to provide the investors the following additional documents via the Exchange:
- An investment memorandum which discloses information about financial and economic activity of the company more fully and informally than the admission prospectus and issue resolution. The information must be provided at the stage of achieving placement in the Sector.
- A corporate calendar that discloses to investors the main events of the issuer's company.
To increase the level and quality of transparency of IGC sector companies the Institute of Listing Agents is introduced. A listing agent is an organization corresponding to requirements set by the Management of Directors of the MICEX Stock Exchange, that has concluded an agreement with the issuer (management company) on provision of services that include preparing a document package for admission of securities to placement and circulation in IGC sector of MICEX SE and the following additional functions: financial consulting, information disclosure control while maintaining securities in the IGC sector. The Institution of Listing Agents must ensure the proper level of investors' rights protection and minimize the risks of spreading false data and information.
 | Presentation "IGC Sector on the MICEX Stock Exchange"
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MICEX Stock Exchange
