Azerbaijan, Baku, June 11 / Trend I.Khalilova /
The opening of investment funds in Azerbaijan will lead to institutional changes in the stock market and deepen the market's potential, Azerbaijani State Securities Committee Chairman Rufat Aslanli said.
"Investment funds allow new tools to enter a market, which increases stock market supplies," Aslanli said. "Today transactions occur mainly in the state and corporate securities, and the state's share of the securities is 80 percent."
However, more and more corporate transactions are made with each year, he said, stressing that the share of state securities on the stock market has already declined from 90 to 80 percent.
Aslani said investment funds are a key part of enhancing market securities.
"First of all, investment funds must be applied. They institutionalize investment opportunities on any given market. They are major institutional investors, which attract small investments."
These opportunities will encourage companies seeking investments to enter the market, while requiring greater transparency and ensuring that their activities meet international standards.
Aslanli added that the funds will give a major boost to the stock market.
A draft law on investment funds has been submitted to parliament. A similar law was passed in Azerbaijan in 1999, but it no longer meets today's requirements, Aslanli said.
Do you have any feedback? Contact our journalist at: [email protected]