Azerbaijan, Baku, Aug. 1 / Trend E.Ismayilov /
The State Securities Committee (SSC) of Azerbaijan proposes to tighten sanctions against individuals, legal entities and officials for violating the rules of emission and issue of securities, investors' rights.
This is stated in the draft law amending the Code of Administrative Offences, which is submitted to the government of the country and is currently undergoing interagency coordination.
According to the draft, breach or any unlawful restriction of the rights of holders of securities entails a fine of 400 to 800 manat for officials and from 4,000 to 8,000 manat for legal entities. The current version of the Code provides penalties for officials ranging from 50 to 90 manat.
Fine for violation of the rules of the securities individuals is proposed to be increased from 50-70 manat to 300-500 manat, for legal entities - from 150-200 manat to 5,000-8,000 manat. The State Committee also proposes to introduce penalties against the officials in the amount of 800-1,000 manat.
State Committee proposes to introduce penalties for violation of rules for each type of professional activity on securities market separately:
- For violating the brokering rules, penalties for officials are offered ranging from 500 to 800 manats, for legal entities - from 3,000 to 5,000 manat,
- Dealer activity - 500-800 manat for officials, for legal entities - from 3,000 to 5,000 manat,
- Clearing activity - 500-800 manat for officials, for legal entities - from 3,000 to 5,000 manat,
- To keep the register of securities owners - 800-1,000 manat for officials, for legal entities - from 5,000 to 8,000 manat,
- Depository activity - 800-1,000 manat for officials, for legal entities - from 5,000 to 8,000 manat,
- Asset management - 800-1,000 manat for officials, for legal entities - from 8,000 to 10,000 manat,
- Exchange activity - 800-1,000 manat for officials, for legal entities - from 8,000 to 10,000 manat,
- The organization of trading in the securities market - 500 - 800 manat for officials, for legal entities - from 3,000 to 5,000 manat,
For violation of rules and standards for maintaining the register of holders of securities the State Committee proposes to increase fines for officials from 60-70 manat to 300-500 manat, legal entities - from 150-200 manat to 1,500-2,000 manat.
Violation of the rules of transactions in securities, according to the project, is punishable by a fine on officials in size from 400 to 800 manat (now 40-90 manat), for legal entities - from 3,000 to 5,000 manat (150-200 manat).
An article providing for the imposition of a penalty for manipulating the prices of the securities market, the individuals in size from 300 to 500 manat, for officials - from 800 to 1,000 manat for legal entities - from 5000 to 8000 manat is proposed to be included in the Code.
It is proposed to increase the amount of financial penalties for illegal use of proprietary information for individuals from 100-200 manat to 300-500 manat, for officials - from 300-500 manat to 800-1,000 manat.
According to the draft, the refusal or failure to submit the report or provision of misinformation is punishable for officials by a fine in the amount of 500-800 manat (currently 60-80 manat), and from 1,000 to 5,000 manat (currently 200-300 manat) - for legal entities.
It is proposed to increase the penalties for violation of the rules of publication of information by professional participant, issuer, or self-regulatory organizations from 70-90 manat to 500 - 700 manat for officials and from 90-200 manat to 2,000 - 3,000 manat for legal entities.
Violation of rules of documents storage is punishable by a 200 - 300 manat fine (currently 5 - 25 manat) for individuals, from 500 to 700 manat (50-70 manat) - for officials, from 1,000 to 5,000 manat (200-300 manat) for legal entities.
Violation of the rules of mortgage securities involves the imposition of fines on individuals ranging from 200 to 300 manat (currently 5-25 manat), officials - from 500 to 700 manat (25-40 manat) for individuals - from 1,000 to 5,000 manat (150-200 manat).
It is proposed to increase the penalties for violation of the rules of advertising in the securities market at 800 -1000 manat (currently 45-60 manat) for the officials, and 3,000 -5,000 manat (150-200 manat) for legal entities.
According to the draft law, refusal to pay fees on securities is punishable by a fine from 500 to 700 manat (currently 50-70 manat) for officials, from 3,000 to 5,000 manat (150-200 manat) - for legal entities.
It is proposed to increase the penalties for the rights of shareholders up to 500 -800 manat (currently 70-90 manat) for officials and from 3000 to 5000 manat (200-250 manat) for legal entities.
According to the draft law, the violation of the law on lotteries entails the imposition of fines on individuals ranging from 800 to 1,000 manat (currently not available), 2,000-3,000 manat (50-70 manat) for officials, from 8000 to 10000 manat (now 150-200 manat) for legal entities.
Obstruction of audit entails the imposition of fine on officials in the amount of 800 to 1,000 manat (currently 60-80 manat), and 3000 - 5000 manat (150-200 manat) for legal entities.
Failure to submit information by a professional participant of securities market, the issuer or self-regulatory organization is punishable by a fine 500 - 700 manat for officials (currently 20-50 manat) and 1500 to 2000 manat (150-200 manat) for individuals.
The official exchange rate is 0.7855 AZN to $1 on Aug.1.