Listingrule s

SECTION 3. CHANGING SECURITIES LISTING LEVEL

Article 16. Procedure for Changing Securities Listing Level

1. 
   The following shall constitute grounds for the making, by the Exchange, of the decision to change the listing level:
   

• 
  the Application seeking change in the listing level, with an indication to the List section in which the securities are included, and the List section to which the securities are to be moved, filed by the Applicant with the Exchange. The Application shall be accompanied by the documents in accordance with the list provided in Annex 1 to these Rules (depending on the List section and the kind/type/category of the security in relation to which the Application is filed);
  
• 
  the Listing Department expert opinion containing an explanation why such change in the listing level is appropriate, drafted in accordance with the requirements of Article 22 of these Rules.
  

1. 
   The listing level change shall be effected by the Exchange by making a decision to move the securities from one List section to another List section, namely:
   

1. 
   securities transfer from Level Three to Level One or Two (hereinafter, listing level upgrade);
   
2. 
   securities transfer from Level Two to Level One (hereinafter, listing level upgrade);
   
3. 
   securities transfer from Level One to Level Two (hereinafter, listing level downgrade);
   
4. 
   securities transfer from Level One or Two to Level Three (hereinafter, listing level downgrade).
   

1. 
   The decision to change the listing level of a security shall be made by the Exchange provided that such security and the Entity conform to the requirements applicable to the inclusion of securities in the respective List section to which such securities are to be moved.
   
2. 
   A listing level upgrade or downgrade decision shall be made by the Exchange in accordance with the procedure referred to in Article 7 or Article 22 of these Rules, with due regards to the specific provisions of Article 10.
   
3. 
   A decision to change the listing level shall be made by the Exchange concurrently with the decision to effect appropriate amendments to the Exchange Trading System.
   
4. 
   The Exchange shall make a decision to downgrade the listing level in the following circumstances:
   

1. 
   The Entity filed an Application for a listing level downgrade;
   
2. 
   the Exchange found grounds for the exclusion of securities from Level One or Two;
   
3. 
   the Entity failed to remedy a violation by the deadline prescribed by the Exchange.
   

7. 
   If within three months after the completion of placement and (or) sale of securities included in Level One or Level Two in accordance with the terms and conditions referred to in Article 10 of these Rules, the share of the issuer's free float falls below the FF threshold set in Sub-Clause 1 Clause 2.21 Annex 2 to these Rules, the Exchange shall make the decision to downgrade the listing level of such securities as follows:
   

- from Level One to Level Two, provided that the requirement set out in Sub-Clause 1 Clause 2.21 Annex 2 to the Rules for Level Two is complied with; or
- to Level Three.

8. 
   Within one trading day following that when the decision to change the listing level was made by the Exchange, the Exchange shall:
   

• 
  notify the Entity of the decision made;
  
• 
  disclose the information on the decision made via the website of the Exchange.
  

In its decision to change the listing level, the Exchange may set a listing level change date different from the date of such decision, as long as this is not contrary to the Bank of Russia regulations.