Wide Sweeping OTC CBA

OTC corporate securities market develops in greenhouse conditions - information about the objects of sale kept secret. In these circumstances, the OTC market is growing rapidly.

In the first quarter of 2013, the National Depository Center (provides custody services to virtually all issuers of corporate securities in Azerbaijan) recorded 103 transactions of purchase and sale in the secondary market, the prisoners outside the stock exchange, for a total amount of 48 155 thousand manats. This is two times more than in the corresponding period of 2012 (23,447 manats), 5 times - than in 2011, 10.8 times - than in 2010.

Note that on the BSE are made mainly targeted transactions on purchase and sale of minority interests, which generally not exceed 0.5-1% of the emissions. The insider trading is mainly with owners of more than 10% share in the capital of companies. Under the law of BSE must disclose that information. However, the market does not disclose this information without any comment. Therefore, the OTC platform has become so attractive place to insiders, using opaque situation, making deals on a huge amount. The situation continues to March 2012 and possibly out of control Financial Monitoring Service under the Central Bank of Azerbaijan. - 08B-

 

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