MICEX has expanded its family of indices with the MICEX Innovation Index (MICEX INNOV), which is based on stocks in the MICEX Market for Innovations and Investments and requires at least 10% of each component's shares are freely traded in the organised market.
The MICEX INNOV will include shares in seven companies admitted to trading in the exchange's Market for Innovations and Investments: ARMADA; DIOD Company, an environmental technologies and ecological food provider; Don Radio Components Factory; Human Stem Cell Institute; O2TV; Russian Navigation Technologies and Pharm-Sintez, a pharmaceuticals firm.
According to the MICEX vice president, Gennadi Margolit, the launch of the MICEX Innovation Index shows that the Market for Innovations and Investments has reached certain maturity.
“This instrument will contribute significantly to the promotion of the innovations market and the expansion of its investor base,” he said.
In addition to the proportion of shares in the free float, the index rules dictate that the maximum weight of shares of one issuer in the MICEX INNOV index is 30%. This does not exceed the maximum allowable weight of one issuer's shares in the index which can be used as the basis for index funds, as set out under Russian law.
The rules for calculation of the index provides for a quarterly review of the composition of the index. To effectively use the new index, the retrospective calculation of the values of the MICEX INNOV index was made from the date of the beginning of its calculation, 29 December 2009 to the date of its official publication, 13 July 2011. The initial value of the Index is set at 1,000 points.
The MICEX Market for Innovations and Investments (MII) is an on-exchange sector for high-tech companies. It includes three main segments or sectors, intended for companies of different degrees of maturity and capitalisation, as well as for different groups of investors.
The MII sector enables innovation companies to make public offerings and admit securities to secondary trading in all modes of trading on the MICEX Settlement House.
The MII-2 sector allows private placements using exchange technologies and listing. Secondary trading is held for qualified investors in the framework of trading technologies designed for trading in large blocks via negotiated deals.
The third part, the Investment Board, is a project aimed at creating mechanisms for attracting investments by innovative companies in the early stages of their growth.