In Azerbaijan Violation of Rights of Investors Increased Significantly

State Committee on Securities Statistics revealed violations of the rights of investors in Azerbaijan for the first quarter of 2013, according to which the received complaints from 333 joint-stock companies, which is 2.3 times more than in the comparable period of 2012.

For violation of the rights of investors in Azerbaijan, there are symbolic penalties, which stimulate the negative relationship in local corporations.

In January-March, the SSC has received 96 complaints of violations of fundamental rights of the shareholders. The number of complaints compared to the same period last year doubled. Controlling the stock market state agency has imposed administrative fines 60 companies, 35% more than in the same period of 2012. The total amount of fines put 12 thousand manats, or 32% more than in 2012. It is noteworthy that the fines are imposed only to legal entities, not the decision-makers who are directly guilty of violating the rights of investors.

SSC has prepared a bill to increase penalties for violations of the requirements of legislation on the rights of investors and other matters of mutual relations on the securities market. However, the bill on amendments to the Code of Administrative Offences (CAP) are still not enrolled in the parliament, but in the three years of preparation of this document to the CAP was made no less than 100 amendments.

Investors in Azerbaijan are increasingly turning to the courts for protection of their rights. It is much more productive than the complaint to the SSC, the shareholders claim. - 08B -