Emergent Global Capital Urges U.S. Investors to Convert Russian Shares by Nov. 11 to Comply with Russian Law 114-FZ
Russiaextends deadline for foreign shares traded outside ofRussia
NEW YORK,Oct. 13, 2022/PRNewswire/ -- With aNovember 11, 2022deadline approaching,Marc Zbochof Emergent Global Capital is urging investors to convert theirUnited States-issued American Depository Receipts (ADRs) into normal shares traded on the Russian exchanges.
According to Zboch, Russian law 114-FZ essentially cancels foreign shares traded outside ofRussia. This means that Americans who were hoping that their frozen shares would someday trade again now have to worry about them becoming worthless forever.
Russiais allowing shareholders a brief window in which they can convert their U.S.-issued ADRs into normal shares traded on the Russian exchanges.Russiaoriginally passed a law allowing investors to claim their shares directly from the Russian custodians byOctober 11, 2022. This date has been extended toNovember 11, 2022. AfterNovember 11, shareholders will no longer be entitled to claim the underlying shares through this program.
Navigating the bureaucratic conversion process can be challenging, Zboch said. "Depending on the particular shares you own and the type of conversion, you may have to open a Type-C account inRussia, collect evidence of your ownership, translate and apostille documents, courier documents or take other steps."
Many investors don't realize that their ADRs or Global Depositary Receipts (GDRs) are not actual Russian shares, but rather tokens created to trade on international exchanges, Zboch said.
Emergent Global Capital continuously monitors the Russian government, depositary institutions and companies for changes. It offers full-service conversion for individual investors and consults with large institutions. Different stocks have different procedures. Emergent Global Capital helps gather all required information, translations and certifications needed for conversion. It also helps investors remotely set up Russian Type-C accounts and retrieve dividends they are owed.
With the deadline approaching, Zboch noted the time it takes for U.S. and Russian custodians to respond is taking longer. This will likely get worse as theNovember 11thdeadline approaches.
Zboch suggests visiting the websiteRussiaDeadline.com, which has a list of all major Russian ADRs and GDRs. The site also shows the ratio of ADRs to Russian shares and gives additional information helpful for current valuation and conversion.
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SOURCE Emergent Global Capital
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