The President of Azerbaijan signed the new law on the securities market. It envisages drastic changes of the infrastructure of the securities market.
The new securities market law is aimed at better protecting investors’ rights, offering broad access to financial resources and expanding financial services.
It has been worked out in the framework of the implementation of the state programme on the development of the securities market in 2011-2020, approved on 16 May 2011.
Due to the fact that the law will have a
heavy impact on the market infrastructure, it will be fully enforced no earlier than 01 January 2016.
The key provisions of the law are as follows:
- All certificated securities should be transferred into non-certificated by the end of 2015 and will be available only for e-trading;
- The rules of issuance and listing of the state and municipal bonds will be clarified;
- The Central Depository of Azerbaijan will be established on the basis of the National Depository Centre;
- Only licensed participants will be able to conduct professional activities on the financial market. All organisations acting as dealers, brokers and asset managers will be obligated to receive an investment company license;
- Clearing and depositary licenses will decrease. Depositories should transfer all securities kept with them to the Central Depository (the National Depository Centre) by 15 September 2015;
- The dedicated internet portal to place reports of listed issuers will be created.
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