The country's market regulator has sketched out new regulations on stock floats, which would effectively limit initial public offerings on foreign markets to 5 percent of the company, a draft order on the new rules showed.

The new regulations, published on the web site of the Federal Service for Financial Markets on Wednesday, are part of a drive by the regulator to channel investment in Russian securities away from foreign markets and onto domestic exchanges, where low liquidity can cause extreme volatility.

Such measures have backfired in the past, however, by causing concern about restrictions on foreign investment in Russia.

Many international funds lack permission to trade on Russian exchanges and can hold only Russian shares that are traded on international exchanges.

Under current regulations, the only companies limited to a maximum foreign float of 5 percent are oil and mining companies. Companies deemed strategic by the government are limited to 25 percent; the rest can float up to 30 percent abroad.

The new rules allow a maximum of 25 percent for companies with a top tier listing at home in Russia. Companies with a lower level listing -- where new stock floats always start out -- can only place 5 percent abroad.