The legal framework for dual-listing was established with the approval of the revised Securities Market Law in 2013, however, the companies operating in Mongolia that are listed on foreign stock exchanges were unable to list their shares on the MSE due to the absence of a dual-listing regulation.

Therefore, the MSE and the FRC formed a working group to develop the “Regulation on Registering the Shares of Foreign-Listed Companies and the Shares of Domestic Listed Companies Listing Overseas”, which was approved by the FRC Meeting on November 24, 2017.

In conformity with the above regulation, MSE revised its ‘Listing Rules’ introducing new rules for dual-listing and improving the listing procedures in line with international practices by the Resolution No.2018/01 of the Board of Directors of MSE and sent to FRC for approval.  

The highlights of the revised ‘Listing Rules’ are as follows:

• The regulations for dual-listing including the waivers and exemptions are provided;
• Listing criteria and requirements are updated including a new section for mining companies;
• Listing fees are set to be calculated from the total market capitalization. In order to promote good corporate governance, the companies in Board I of the listing classification will receive discounts on their listing and annual fees.
• In order to promote the sustainable activities of listed companies, the companies with operations that promote sustainable development shall receive discounts on their listing and annual fees.

MSE Listing Rules are crucial in defining the initial listing criteria for issuers as well as the ongoing obligations as a listed company, therefore these rules are required to take effect with the approval of the FRC in order to facilitate dual-listing on the MSE.

MONGOLIAN STOCK EXCHANGE