Violations of Securities Market to Be Fined up to 9,000 manat

The President signed on November 14 an order on the application of the Law of Azerbaijan "On Amendments to the Code of Administrative Offences." The law provides for tougher financial sanctions against violators of the law in the area of ??capital markets and investor rights entered the date of publication in print - 15th November.

Total changes are in 16 articles of the Code. Previously, the maximum penalty for an administrative violation of legislation on the securities market and investors' rights to legal entities and their officers was 300 manats and from now on, this strap increased to 9,000 manats. The State Committee for Securities believe that the increase in the size of sanctions will undoubtedly lead to improved relations between investors and companies, as well as the overall situation in the market.

For example, we note that in case of violation of the rights of investors , and limit them in any form , company officials will be fined in the amount of 400 to 600 manat, and the companies themselves - from 4000 to 6000 manats. Prior to that, the amount of fine for officials ranged from 50 to 90 manat, and for legal entities sanction was not provided. For breach of the statutory rights of shareholders of the amount of fine for officials can reach up to 700 manat, and joint-stock companies - 4,000 manat. Previously, for violating the law on lotteries as fined up to 200 manats, this total will reach 3,000 to 9,000 manat.

During 10 months of 2013 the SSC has received 259 complaints of violations of the rights of investors and shareholders, which is 29 % more than in the comparable period of 2012. 429 complaints related to joint stock companies. During the same period, complaints were made against 333 AD. In January-October against the violators of rights of investors and shareholders were applied 518 sanctions (+43%) for a total of 140.4 thousand manats (+44 %). - 08D-