Azerbaijan abolishes fee for issuance of int'l identification codes

Under the program "Development of securities market in Azerbaijan for 2011 - 2020" the National Depository Center (NDC) is preparing to offer the securities market participants clearing services, for which intensive work on the preparation of the material - technical basis and the legal framework is underway, the NDC said on Friday.

"The Center, based on internal capacity, has offered shareholders to render clearing services at zero tariffs. These rates are associated with the proposed new services," the report says.

According to the report, in connection with the use of clearing functions, the registration of REPO transactions has been identified within the lowest level out of possible tariffs, and will be 0.003 percent of the total transaction amount for each transaction.

As part of the changes four existing tariff were improved and three new introduced. In particular, the fee is abolished for the issuance by NDC, acting as the National Numbering Agency, of international identification codes to investment securities, and the decision made to receive to deposit the government securities at no charge.

"Tariffs on deposition of securities of banks and insurance companies are equalized to the level of tariffs applied to other issuers, new tariff regulations are applied to housing certificates for the provision of depository services and registrar," a statement said.

NDC offers other depositories wishing to trade on the stock exchange, but not having an electronic exchange with the Baku Stock Exchange to use the link MDM-BFB. This will be possible through the establishment by NDC of correspondent relations with depositories.

In order to protect the interests of holders of securities NDC also offers issuers a new service, "Restoring the registry of owners of securities."


/Trend/