The State Committee for Securities of Azerbaijan Republic is a governmental agency within the Cabinet of Azerbaijan

Cabinet of Azerbaijan

The Cabinet of Azerbaijan is the chief executive body of the Republic of Azerbaijan.-The Executive Power:The President of the Republic of Azerbaijan is the head of state....

 in charge of regulation of activities in securities market

Securities market

Securities market is an economic institute within which take place sale and purchase transactions of securities between subjects of economy on the base of demand and supply....

, protecting rights and interests of investors, shareholders and other owners of securities in Azerbaijan Republic. The committee is headed by Rufat Aslanli

Rufat Aslanli

Rufat Aslanli Jabrayil oglu , also spelled as Rufat Aslanly is an Azerbaijani politician who serves as the Chairman of State Committee for Securities of Azerbaijan Republic.-Early life:...

.

History

Establishment of secuties market in Azerbaijan dates back to the beginning of the 20th century. In the first decades of the century, banks in Baku

Baku

Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...

 issued promissory notes and interest bearing securities which were used during sale transactions and as a form of IOU

IOU

An IOU or I.O.U. is an acknowledgment of debt. The term may also refer to:*I.O.U. , by jazz fusion guitarist Allan Holdsworth*"I.O.U." , by jazz-funk group Freeez*I.O.U in Western Australia...

s. Usage of promissory notes was widely developed during the existence of Azerbaijan Democratic Republic

Azerbaijan Democratic Republic

The Azerbaijan Democratic Republic was the first successful attempt to establish a democratic and secular republic in the Muslim world . The ADR was founded on May 28, 1918 after the collapse of the Russian Empire that began with the Russian Revolution of 1917 by Azerbaijani National Council in...

. The first shares in the country were issued by the Baku Trade Bank. Among the main shareholders of the bank were the chairman of board of directors, Haji Zeynalabdin Taghiyev

Haji Zeynalabdin Taghiyev

Hajji Zeynalabdin Taghi oglu Taghiyev was an Azeri national industrial magnate and philanthropist.-Early life:...

, Shamsi Asadullayev, Musa Naghiyev, Murtuza Mukhtarov

Murtuza Mukhtarov

Murtuza Mukhtarov was an Azerbaijani Oil industrialist and millionaire.Mukhtarov was born into a poor family in a village of Amirajan near Baku. Mukhtarov managed to become one of the most reputable drilling experts in Baku through his ability and many years of experience. He set up his own...

 and others. After establishment of Soviet rule in Azerbaijan, the usage of notes was banned.
With restoration of independence of Azerbaijan, establishment of securities market was one of the main priorities of the government.
On July 26, 1999 Presidential

President of Azerbaijan

The country of Azerbaijan is a presidential republic, with the President of Azerbaijan as the head of state, and the Prime Minister of Azerbaijan as head of government...

 Decree on "On Providing the Activity of State Committee for Securities under the auspices of the President of Azerbaijan Republic" formally established an agency under the office of President of Azerbaijan

Presidential Apparatus

The Office of Azerbaijan President is the executive administration of President of Azerbaijan. The office is in charge of realization of constitutional responsibilities of the President...

 overseeing organized securities market in the country. Since the inception, the committee has undertaken several important reforms on transparency of processesing the security markets, adopted acts restricting potential risks in the markets to the minimal level, protecting rights of investors to comply with international standards.
On February 15, 2000 the committee supported establishment of Baku Stock Exchange

Baku Stock Exchange

The Baku Stock Exchange is the main stock exchange in Azerbaijan. A member of the Federation of Euro-Asian Stock Exchanges , BSE is organized in the form of closed joint stock company with 18 shareholders...

 (BSE). Baku Stock Exchange is made up from18 big banks and financial institutions, with Istanbul Stock Exchange

Istanbul Stock Exchange

The Istanbul Stock Exchange is the only corporation in Turkey for securities exchange established to provide trading in equities, bonds and bills, revenue-sharing certificates, private sector bonds, foreign securities and real estate certificates as well as international securities. The ISE was...

being among them. The first trading operation at the stock exchange was carried out on September 1, 2000.
On November 19, 2008 Presidential Decree No. 52 established State Committee for Securities.

Structure

The committee is headed by its chairman, first deputy chairman and two deputy chairmen. It consists of Department of Securities Issue and Registration, Department of Regulation of the Debt Market and Registration of Pledge Operations, Department of Regulation of Securities Turnover, Department of Regulation of Securities Infrastructure, Department of Development and Monitoring of the Securities Market, Department of Law Personnel and Recruitment, Department for Personnel Training, General Department, Department of Information and Public Relations, Accounts Department and General Service Department. Main functions of the committee are regulating activities in the securities market, organization and development markets, creating favorable investment conditions; creating and maintaining an environment for healthy and fair competition in the securities market; protecting rights of participants, investors and shareholders, preparation of licensing rules for professional activities in the securities market, etc.

External links

• The National Depository Center of Azerbaijan Republic