Ukraine Continues Development of Securities Regulations: New Rules for Issuers and Investors

    November 2009

    In June 2009 Ukraine’s parliament adopted a new law, “On Amendment of the Law of Ukraine ‘On Securities and Stock Market’ With Respect to Some Rules Applicable to Issuers and Investors” (the Securities Amendment), which went into effect on October 30. In addition to bringing the “On Securities and Stock Market” law in compliance with the Joint Stock Company Law (2008), the amendment introduced rules applicable to issuers and investors in Ukraine’s securities market including (i) a limit on the number of potential investors who may be solicited during private placements of joint stock company shares, (ii) grounds for termination of a shares subscription and (iii) a requirement to convert shares into either paper or electronic form by October 30, 2010.

    Peter Z. Teluk, Dmytro Sakharuk and Volodymyr Smelik of Squire Sanders’ Kyiv office offer an in-depth look at the rules, including the step-by-step process for converting shares from paper to electronic format, in the November 2009 edition of the Russia/Eurasia Executive Guide.