The Financial Regulatory Commission (FRC) officially approved the regulation for companies dual-listed on the Mongolian Stock Exchange (MSE) and other approved stock exchanges around the world. FRC and MSE formed a joint working group to develop the Provisional Regulation on Registering the Shares of Foreign-Listed Companies and the Shares of Domestic Listed Companies Dual-listing Overseas, which was approved by the commission on November 24, 2017. The revised Securities Market Law of Mongolia, adopted on May 24, 2013, provided a legal framework for dual listing of securities on both the Mongolian Stock Exchange (MSE) and international exchanges. However, it was only in July this year that FRC approved a temporary list of approved foreign stock exchanges and temporary list of approved jurisdictions in which underlying securities of depository receipts are registered on the basis of the recommendation from MSE. According to MSE, this move will enable companies that are already listed on the approved stock exchanges and have registered underlying securities in jurisdictions that have a well-established investor protection system to be exempt from certain regulatory requirements when issuing their shares and depository receipts in the Mongolian capital market. Officials note that this will help over 30 companies operating in Mongolia and listed on five international exchanges to expand their market as well as Mongolian citizens to own and benefit from those securities. “Companies looking for a secondary listing are usually incorporated overseas and have their primary listing on their home exchange. Due to the fact that they follow their home laws and regulations, the secondary exchange normally provides initial and ongoing exemptions as per common international practice. Therefore, the highlight of this regulation is the enabling of the foreign-listed issuers that are being dual-listed in Mongolia to follow the laws and rules of their home exchange and for their reporting purposes, professional opinion such as those by international audit and legal firms are to be equally accepted as if they are provided by domestic professional companies,” MSE stated on their website. Accordingly, the most important requirement for foreign-listed companies looking to dual list on MSE is to have their primary listing on one of the 26 stock exchanges approved by FRC. If the company is registered on one of the 26 approved stock exchanges, the remaining procedures are designed to be simple and straightforward, says MSE. According to MSE officials, the approval of this regulation is a significant development milestone for Mongolian capital markets in that it will enable approximately 30 foreign-listed mining companies operating in Mongolia to be listed on MSE, giving the Mongolian public the opportunity to share the rewards and risks of their businesses.