BSE Updated Listing Rules of Securities

Baku Stock Exchange upgraded "Rules of listing, delisting and admission to trading of securities" that acted since August 2009 and simplified tariffs listing.

It defined three levels of market segment, classified by the listing requirements: basic, standard and alternative. At the same time, the Exchange may grant conditional listing companies for a period of 6 months. During this period, issuers must comply with the requirements of listing segment to provide them. Otherwise, they face delisting. Will operate in parallel and unquoted list Exchange, where will continue to be traded securities of companies that are not made in exchange quotation.

Companies applying to the ground level stock exchange listing must meet certain strict criteria. At this level may qualify only companies established in the form of an open joint stock company. Depending on the amount of the authorized capital (from 2.5 million to over 10 million manat), they have to work with a net profit of 1 to 3 in recent years. After the listing these companies must ensure the free circulation of shares of 5% to 10% of the authorized capital. In this case, the action of free circulation should be distributed among at least 50 shareholders. One of the members of the Supervisory Board should be independent according to the criteria of BSE.

Milder conditions for admission to listing are defined on the standard segment. These are: a stable financial condition, including the achievement of net profit for the last fiscal year, the presence of the authorized capital of not less than 0.5 million manat and 50 shareholders, ensuring the free circulation of at least 5% of the shares.

It should be emphasized that according to the new rules, companies that meet the requirements of the main segment of the stock market cannot be included in the standard segment. The securities of issuers that do not meet the first two criteria are included in the alternate segment. In this segment there are no specific criteria.

Also defined are the requirements on the bonds listing on the exchange segment, and reporting forms by issuers.

Significantly reduced and simplified are tariffs for listing of securities. If previously the cost of services included in the listing was up to 3,000 manat, then from February 1 this year on the main level of the listing the annual fee is 1,000 manat, on the standard level - 500 manat, and on the alternative level - 200 manat.

New listing rules were developed with the participation of experts of the project "Modernization of Capital Market" based on international experience, as well as the features of the local stock market. In BSE believe that they will encourage issuers to exhibiting their securities for listing.

Since 2009, the stock market listing of securities has included only two companies: shares of Demir Bank and bonds of Emba Wood. --08B--

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