NAUFOR offered regulators several options to support the Russian market. One of them is to cancel tax from coupons on bonds.
What was offered
NAUFOR is the National Association of Stock Market Participants. The association includes Brokers, depositaries, trustees, investment advisers and fund managers. The main goals of the association are to ensure a high level of quality of services and protect investors..
2 March NAUFOR wrote a letter to regulators - the Ministry of Finance and the Bank of Russia. The Association supported the decision to send a trillion rubles from the NWF to buy sagging Russian shares. And she also offered to additionally support the markets., when will auction open. And here's how:
- Ministry of Finance to redeem bonds, primarily Eurobonds. This is beneficial given the sharp decline in the cost of public debt..
- NPFs – non-state pension funds – are allowed to hold more assets in the form of shares. Among other things, this will allow funds to make money over a long distance.
- The Pension Fund of the Russian Federation to invest up to 10% assets in Russian shares.
- Stimulate private investors: abolish income tax in the form of coupons and discounts on Russian bonds, which circulate in an organized market. And also to keep the investment tax deduction on contributions to IIS.
According to NAUFOR, these measures will help to adapt the Russian financial market to the new conditions, reduce the risk of a systemic crisis and protect the interests of Russian investors. The association also considers, that exchanges should not be closed for a long time, because over time the effectiveness of this measure decreases.
24 February, when the Moscow Exchange index fell by more than 30%, NAUFOR appealed to private investors. The Association recommended to show common sense and not to make emotional decisions about the sale of cheaper assets.