NDC demands money for no service rendered

In Sumgayit Administrative - Economic Court a trial began between one of the companies in the northern region of the country and a securities depository. Joint Stock Company does not agree with the financial claims of the National Depository Center (NDC).

JSC SB (fictitious) appealed to the NDC to provide the register of securities holders to organize a general meeting of shareholders. Depositary set in connection with this account. However, the company never agreed to this account, since it included not one-year period, but a few years.

"The demand for cash payments for services not rendered contrary to the law and we do not intend to pay this bill," Turan was told in the company .

According to the approved chairman of the State Securities Committee ( SSC) of the price list of NDC in the case of re -treatment , the issuer must pay a missed period , even if the services of safekeeping and maintaining a register of holders of the Central Bank was not provided .

The cost of services for safekeeping and maintaining a register of holders of the Central Bank is attracted to the par value of the securities and the higher it is, the greater NDC will charge for services. By the issuers located in Baku it is 0.05 % and in other regions - 0.03 % of the share capital. And this amount can not be less than 100 manats (in the regions - 50 manat) and above 10,000 manat (twice in the regions below).

Some issuers believe due to the fact that the NDC is not only a state-owned enterprise (100 % owned by SSC), but virtually the only depository of the Central Bank. The other depository (LLC Corporate Agency Trust) serves solely the International Bank of Azerbaijan. Therefore, the company has no alternative but NDC. - 08B -