Azerbaijan needs well-thought capital market development strategy - WB
Baku, Azerbaijan, Oct. 6
By Azad Hasanli - Trend:
The adoption of a new law on the securities market in Azerbaijan will create a solid foundation for the capital market development, investor interest protection and safety, Ketut Ariadi Kusuma, the WB chief adviser for the securities market, said during the presentation of the new law in Baku Oct. 6.
However, the adoption of the new law and good infrastructure are insufficient because the most important thing is for this law to work.
"A well-thought market development strategy is necessary," Kusuma said. "The market representatives would be involved in its creation."
"While regulating the capital market, it is necessary to take into account the needs of investors, to choose large, medium or small companies for their involvement to the market and those requiring the issue of shares or bonds most of all," he said.
He said that the relevant thing today may become irrelevant tomorrow, so the market must be able to adapt to the new conditions.
The new law on "Securities market" entered into force on July 14, 2015.
According to the law, the brokerage and dealer companies in Azerbaijan will receive a single perpetual license for the activity of investment companies.
Until now, the activity licenses of the professional stock market participants were given separately and for a period of five years.
The licensed companies have an opportunity to bring their activity into compliance with the new law until January 1, 2016.
Edited by CN