NDC to Implement Securities Settlements

In Azerbaijan clearing activities on securities transactions from the 3rd of September this year will be implemented by the CJSC National Depository Center (NDC) instead of the previously engaged Baku Stock Exchange (BSE). In this regard, since 30 August trade on the BSE has been temporarily suspended.

In the BSE they told Turan that the transition to the new system of securities settlement is provided by the State Program of development of the securities market in Azerbaijan in 2011-2020 and is associated with the creation of the Institute of the Central Depository, as which NDC will act.

Due to the innovation it is expected that the SSC in these days will give the NDC a special permit (license) for clearing activities on the securities market. BSE, in turn, will also refuse of depository activities.

NDC is licensed perpetually for depository activities and the registration of shareholders.

Clearing is a professional activity with definition of the mutual obligations on securities transactions (data collection, validation, verification of information, preparation of accounting documents) , the implementation of settlement and fulfillment of mutual obligations. - 08B-