Azerbaijan, Baku, Oct. 27 /Trend, I.Khalilova/
State Securities Committee (SSC) of Azerbaijan has started negotiations with some investors interested in participating in the creation of the first investment fund (IF) in the country, said the chairman of the SSC Rufat Aslanli.
"Today, there are certain circles interested in this. Official proposals have not been made yet, but some talks are already underway," said Aslanli. The great interest in the creation of investment funds is often displayed by local investors, but some foreign companies are also interested.
The Law on Investment Funds was adopted by the Parliament of Azerbaijan on Oct. 22 and submitted to President for approval.
Preparation of a new law was prompted by the fact that the 1999 Law on Investment Funds does not meet today's requirements.
Adoption of this law will expand proposals in the market, as investment funds will stimulate emergence of new tools, volume of operations will expand and better conditions for the participants will be created.
The new edition of the bill envisages a number of innovations in the activities of investment funds. In particular, under current law, investment funds in Azerbaijan can be created only in the form of joint stock companies.
The new edition of the bill defines the exact procedure for licensing of investment funds. Under the bill, licensing will be held in two phases. At the first stage of a person wishing to establish an investment fund will appeal to the SSC to obtain a permit for the reasonability of establishing a fund. The term of consideration of this appeal is 60 days. In the second stage, after the state registration, the created fund as a legal entity must reapply to the State Committee directly for a license. The term of consideration of the application for a license is 30 days.