Finance

Finance

Azerbaijan intensifies control on access of local companiesâ€™ assets to abroad

27 March 2012 14:36 (UTC +04:00)

APA reports that it has been considered in the Rules on Securities Placement outside Azerbaijan by Domestic Issuers approved by Order #4 of State Securities Committee.

Compared to other rules related to it, new rules regulates placement of securities outside of not only domestic issuers, but also securities, issued with participation of legal entities registered in Azerbaijan.

If up to this day, local companies could place their securities abroad without any permission or through legal entities outside the country, thereupon this operation will demand permission. With the application of new rules, placement of securities abroad will be realized by the participation of Azerbaijani issuers under the permission of the State Committee on Securities.

According to new rules, the requirements for companies intending to place the securities in abroad will be made hard. So for permission, those companies must submit financial statements audited by independent auditors to SCS.

Individuals who receive financial assistance from state budget, as well has an obligation to state budget including debt with state guarantee will have to get permission from Ministry of Finance for external debt.

According to rules, only those companies whose securities were included in BSEâ€™s questionnaire can place the securities in abroad.

Besides, the volume of issuerâ€™s shares in the circulation in abroad must not exceed the 40% of total issues.