Licenses of Baku Stock Exchange’s five members suspended
Azerbaijan, Baku, Aug. 25 / Trend A. Akhundov /
At present, the licenses for broker-dealer activity of 5 of 16 Baku Stock Exchange (BSE) members were suspended, BSE told Trend today.
According to BSE, the licenses of Azerbaycan Senaye Bankı, AzerTurkBank, Kapital Partners, Mars İnvestment, Xalq Kapital were suspended for their activity as professional participants on the securities market in the country.
The suspension of the banks' licenses is connected with the fact that in accordance with the legislation, the banks-issuers may not act as professional market participants. This practice is used all over the world. In this regard, after the banks' licenses for broker-dealer activity expire, new permits are given to their subsidiaries.
Thus, there are 14 licenses for brokerage activity, 13 for dealer activity, three for depository, one for clearing, one for professional activity on the stock exchange, and two for keeping the register of securities holders in the Azerbaijani securities market.
Only local organizations can be BSE members. Membership fee at the BSE is 60,000 manat.
BSE has 19 shareholders, taking into account the Istanbul Stock Exchange. The BSE authorized capital is 1.2 million manat.
The official exchange rate is 0.7854 AZN/USD on Aug. 25.