Azerbaijan's securities market to seriously develop in 10 years

Azerbaijan will develop its securities market in six directions within the State Program "Development of the securities market of the Azerbaijan Republic for 2011-2020" recently approved by the President.

An action plan includes institutional development of securities market; organization and promotion of collective investment schemes and financial intermediation; support to the supply and demand in the securities market; expansion of the use of corporate governance and principles of financial transparency; improving the legal framework in this area; expansion of awareness and training of professional personnel. The official press published the text of the state program and the plan on Tuesday.

Regarding the first direction, it is expected to bring the institutional and legal structure of the stock exchange to international standards, as well as to introduce new trading system that will expand trade opportunities and basic subsidiaries of financial instruments. Mechanisms accounting of securities and registration of rights to them will be simplified during 2011-2013. The country will create a single, centralized depository system for government and corporate securities in 2012-2014.

The State Securities Committee (SSC) jointly with the Central Bank of Azerbaijan (CBA) will carry out measures to automate and optimize procedures for pledging securities in 2012-2014, and an integration of operational and settlement systems of the OTC organized securities market in the clearing system will be ensured in 2013-2016.

The action plan also envisages the organization and promotion of collective investment schemes and financial intermediation, in the frames of which the necessary legal framework will be developed in 2012-2013 governing the activities of investment companies and further their activities and the legal framework in 2011-2013 governing and promoting the activities of asset management companies and investment funds and other collective investment schemes, as well as the activity of custodians in 2012-2014.

The Finance Ministry, CBA and SSC will together work on the formation of predictable, stable primary and a liquid secondary market for the government bonds in 2011-2013. The SSC will adopt measures to promote the activities of the market-maker institutions and create a regulatory legal framework of their activities in 2013-2015.
The SCS in cooperation with the Economic Development Ministry will create an alternative stock exchange trading platform for small and medium entrepreneurs in 2012-2014.

The Finance Ministry tasked to implement measures until 2015 to develop expertise on the financial statements of private and public enterprises and ensure application of the international and national financial reporting standards. In 2016-2018, the committee will take measures aimed at forming the legal framework governing the activities of rating agencies, and promote their activities.

Until 2013, the country is expected to adopt a new law "On securities market" corresponding to international best practice. It is planned to create an optimal system of registration and registration of securities and implementation of international numbering securities (code ISIN) in 2013.

The state program also provides for increasing awareness and training of professional personnel, in connection with which there will be undertaken measures on a regular basis to strengthen the organizational and functional capacity of the SSC, develop the human resource capacity, improve the capacity of training courses at the SSC and organize certification programs on the capital market.


/Trend/