Bank Of Baku

Azerbaijani President approves draft law on Investment Funds

Azerbaijani President approves draft law on Investment Funds
# 22 November 2010 11:41 (UTC +04:00)
According to APA-Economics, the draft law contained 11 chapters, covers types of investment funds, their operating principles, relations wit investors, control mechanisms on funds, investment instruments, licencing and other issues.

According to document, the investment funds may be established as joint-stock investment fund and shared fund. Joint-stock investment fund’s status is legal entity, is established as OJSC and operates based on licence. The capital of this fund is formed by revenues from sales of share.

Shared investment fund has not legal entity status and they are established as open, interval and closed funds. Its capital is formed by revenue from sale of investment fund shares. Note that, a decision on establishment of shared funds is adopted by manager. Thus, the manager owning relevant licence establishes shared investment fund and manages it. The main difference of these funds are that, the buying rules of shares back are conducted on announcement and accounting of current worth of fund’s assets.

According to draft law, the fund’s assets may be contained moneys, securities and real estates.
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