FRC ALLOWS FUNGIBILITY OF DUAL LISTED STOCKS

In 2018, the dual listing was introduced to the market and it has become a significant development milestone for Mongolian capital market in that it will enable foreign-listed mining companies operating in Mongolia to be listed on the MSE, giving the Mongolian public the opportunity to share the rewards and risks of their businesses.

In order to improve the legal environment of dual listed stocks, the FRC Regulation on Dual Listing was amended by the FRC Meeting of August 12, 2020. These amendments will allow the fungibility of dual listed stocks between the markets, which will benefit the liquidity of the stocks, provide investors with opportunity to take advantage of price differences of the markets as well as increase supply of the stocks in the domestic market.

According to these amendments, the shareholders of dual-listed ‘Erdene Resource Development Corporation’ will be entitled to trade their shares on the Toronto Stock Exchange by contacting the MCSD or their brokerage company.

Source: mse.mn