Azerbaijan began to apply severe sanctions for violations of the rights of shareholders

Baku/16.12.13/Turan State Securities Committee has started to administrative liability of those who violate the rights of shareholders . Penalties are increased by about 15 times .

In November, the SSC has sanctioned 14 Joint Stock Company totaling 18,400 manat ( AZN 1,300 on average) . New rates penalties came into force on 15 November . Total YTD fined 532 AO violations of the rights of investors , told Turan the SSC . This is 35% more than in the same period last year. The total size of these fines to the state budget amounted to 158.8 thousand manats, which is 52 % higher than in the 11 months of 2012 .

We note that the penalties for violations of the rights of shareholders and the implementation of the intervention of the supervising the securities market of the state body can be applied both in terms of the legal entity ( JSC ) and its officials . SCS hitherto exclusively penalize entities.

Since the beginning of the year the SSC received 285 complaints from investors , which is 27 % more than in the comparable period last year. Complaints related to 448 AD. Number appealed JSC increased by a third .

Securities market in Azerbaijan is regulated by several articles of the Code of Administrative Violations. SCS mainly uses two of them ( Article 220 and 324 ) , which are aimed at preventing violations of shareholders' rights and interference in the work of the supervisory authority . If before November 15th the size penalties for infringement of the rights of shareholders to officials ranged from 70 to 90 manats, that after this date - from 600 to 700 manat. For legal persons, that this sanction previously ranged from 200 to 250 manat increased to 3,000-4,000 manat. Interference with the activities of the SSC by the participants of the securities market , as well as evasion of its decisions and cost requirements are not legal entities 150-200 manat, and to 3000-4000 manat. Officials securities market players expect a fine of not 60-80 manats, but 800-900 manats. In case of failure to provide the documents on the activities they had to carry out to SSC, legal persons may be deprived from 1500 to 2000 manat ( previously AZN 150-200 ) and their officials - 500-600 manats ( previously AZN 20-50 ) .

It is assumed that increasing penalties positive impact on respect for the rights of shareholders as a whole and on the situation on the securities market . Approximately 55 % of respondents of the virtual online survey sehm.az believe that the situation will change for the better. 08B

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