OTC securities market transactions are growing on an opaque background

For the last two months of 2012 on the OTC market in Azerbaijan is an active process. However, due to the fault of the Baku Stock Exchange (BSE), the objects of these transactions are unknown, making it the market for investors unpredictable and dangerous for the investment.

In Azerbaijan, the central depository (JSC "National Depository Center") and the only Stock Exchange (BSE) will manifest only generalized numbers (the number of transactions, amount) of prisoners over the counter transactions. In contrast to the BSE, the NDC also provides information on the number of transactions of purchase and sale and the aggregate nominal value of transactions. However, in the NDC is no data on the number of securities, which are the subject of trading.

According to BSE in November were recorded transactions for buying and selling over the counter securities 136,522 for a total of 272,700 manat. That is, contracts were entered into for 99.8% of the nominal value of securities. In December, the volume of OTC trades totaled 19,516,800 manats. Traded were 114,946 shares.

NDC data on volume of OTC trades at a bargain price in November-December (21.08 million manat) disagree with exchange rates of about 6%. Although the depositary to provide data on the OTC exchange operations not later than one day after their registration.

Volume of OTC transactions on the invoice amount (21.5 million manat) exceeds the nominal value by 0.6 mln, or 2.8%.

It was learned that at the end of last year, the state of "Azerbaijan Investment Company" ("AIC") sold its 25% interests in two companies participating are created with Group Structure "Azersun Holding". Now, it appears, of the 137 OTC in November-December 2 refer to these transactions.

Ministry of Economic Development, the founder of "AIC", considers that the transaction was successful. However, the NDC and the BSE data suggest that winning "AIC" for the entire investment period in 2007 amounted to only 5% of the investment. Recall that the "AIC" invested to create Masazyr salt plant $ 2.9 million, for the oil and gas terminal in Sangachal $ 9 million, or only 10.2 million manat equivalent to U.S. dollar exchange rate for 2007 (1 manat = 0.8581).

Overall, 20 012 in the NDC were registered OTC transactions for buying and selling securities for a total of $ 83 bn at face value. In 2011, the figure was 51.3 million manat, and in 2011 - 33 million manat. - 08B-