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FRC provides clarification on public Erdenes TT shares

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FRC provides clarification on public Erdenes TT shares

The Financial Regulatory Commission (FRC) made a statement regarding public shares of Erdenes Tavan Tolgoi (Erdenes TT), and announced that citizens do not need to open a securities account immediately to claim their shares. The FRC gave this clarification following recent reports claiming that if citizens immediately opened a securities account at the Mongolian Stock Exchange, their shares of Erdenes TT and ownership rights would be approved and they would receive money in exchange for their shares. The FRC says the news does not reflect official or accurate information about the distribution of shares. The FRC stated that through Parliamentary Resolution No.39 issued in 2010, and Cabinet resolutions No.98 issued in 2011 and No.116 issued in 2012, it was stated that shares of Erdenes Tavan Tolgoi would be distributed to citizens for free. “In accordance with the resolutions, shares of Erdenes Tavan Tolgoi were registered and approved at the Mongolian Securities Clearing House and Central Depository. Shares of Erdenes TT have not been registered at the FRC and the Mongolian Stock Exchange, and the company’s securities trading hasn’t started yet. “The decision to trade a company’s securities with the public depends on a decision made by the company’s authorities, and a security trade depends on many factors, including the company’s capital and business assessment, current and future value, market prices for the company’s products, company governance, proper management, and the interests and demands of investors. This is a professional activity that requires time. Currently, Erdenes TT is working toward ensuring this preparedness,” the FRC underlined in its official statement. Following the falsely reported news, it was reported to the FRC that some private companies had opened securities accounts. The FRC explained that even though people have the right to open securities accounts through companies authorized by the FRC, they don’t have to immediately open an account in order to own shares of Erdenes TT. The FRC said that people don’t have the right to trade or transfer shares of Erdenes TT to others until the company’s shares are available on the secondary market.

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