Under the current Criminal Code of the Russian Federation, individuals or entities may be held responsible for corrupt practices when issuing securities, for fraudulent non-disclosure of data on the issuer to investors and to supervisory authorities, as well as for provision of misleading information.
The amendments to the Criminal Code additionally hold individuals and entities criminally liable for such conduct on the securities market as breaching the procedures of registration of titles to securities, securities price gouging, and impeding or unlawfully restricting the rights of securities holders.
Criminal prosecution for this type of conduct will occur if it causes major damage or results in an essential unlawful income. As per the Criminal Code of the Russian Federation, major damage or essential income is that exceeding one million rubles (approximately $ 35,000).
The amendments are intended to improve investor protection and reinforce law and order on the financial market, to thereby increase its appeal and promote greater investment into Russian businesses.