On 22 August 2008 the National Securities Commission (NSC) approved the instructions referring to the issuance and trading of Allocation Rights. This decision replaces the previous one from 31 October 2007 and clearly defines the classes of securities for which allocation rights can be issued:
– Shares allocated as a result of an IPO;
– Shares allocated as a result of a Public or Private Offering Sale;
– Bonus shares;
– Stock dividends;
– Shares allocated as result of a stock option plan;
– Shares resulting from a merger process;
– Shares allocated from convertible bonds;
– Debt-to equities conversion;
– Shares resulted from a split process.
The certificates will be issued at a rate of one right for each share allocated and will cease to exist when the shares linked to the certificates are listed on the market.
The trading of Allocation Rights will be allowed if the issuers EGSM will decide and request the admittance of the rights on BSEs quote and will follow the existing rules applied for instruments traded on BSE.
In Romania, due to the official procedures that must be followed after the decision to modify issuers share-capital or after the finalization of an IPO, the period between the allocation date and the booking of the new shares on accounts is often longer than three months.
The rights will allow investors to trade or valuate the instruments to which the rights are linked prior to the booking of the new shares on accounts in the period between the allocation date and the booking of the new-issued shares on accounts.