Abuse in the issuance of securities is a fairly rare crime. Thus, according to the Judicial Department under the Armed Forces of the Russian Federation, in 2018 and in the first half of 2022, not a single person was convicted under Article 185 of the Criminal Code of the Russian Federation. But criminal cases are initiated under this article, although during the preliminary investigation the act may be reclassified under other articles of the Criminal Code of the Russian Federation, for example, fraud or embezzlement . Abuse in the issuance of securities is a crime with a high degree of latency, since the subjects committing such violations are, as a rule, highly educated people who are able to calculate their actions several moves ahead.
Concept of issue and types of securities
To understand the topic, you should understand the basic concepts.
In accordance with the legislation of the Russian Federation, namely the Civil Code, securities are documents that meet the requirements established by law and certify obligations and other rights, the exercise or transfer of which is possible only upon presentation of such documents (documentary securities). This definition is given in Part 1 of Article 142 of the Civil Code of the Russian Federation.
Having analyzed the regulatory sources, we can give their most general classification:
- basic (tied to property rights or assets such as money, goods, etc.) and production (depending on changes in prices for exchange assets on which it is based);
- order and registered (depending on the type of person who has the right to demand execution of the paper);
- emission and non-emission (depending on the order of issue).
In turn, the legislation classifies equity securities as:
- shares (documents confirming the share of ownership of any joint-stock organization and receipt of dividends on them);
- bonds (documents guaranteeing the right of the holder to receive, within a specified period, the nominal price of the bond, as well as a predetermined percentage);
- options (documents confirming the holder’s ability to buy shares at a specified time at a set price).
Interesting! Over the entire existence of the Russian Federation, nine different government bonds have been issued.
