JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
NATIONAL DEPOSITORY CENTER OF AZERBAIJAN
Bakhtiyar Azizov
Chief Executive Office
From this standpoint 2012 was very
significant and fruitful. As per the results
of 2012, the amount of assets stored by the
NDC has exceeded AZN 6 billion.
We are living in truly momentous times marked
by extraordinarily significative processes going
on in the world’s financial system. Under
the influence of the most severe economical
crisis for the last 60 years, we are evidencing
the constitution of the new global financial
architecture and rules of play within it.
While global liquidity shortage and economic
downturn have entered into its new phase,
the economic growth dynamics in Azerbaijan
was not affected to the extent it was in
another countries, which was achieved by
purposeful and balanced reforms and prompt
countercyclical measures undertaken by the
Azerbaijani government, conservative foreign
borrowing policy, maintaining stability of the
national currency and mitigating dependency
upon foreign financial markets. The National
Depository Centre (the NDC) plays a distinctive
and irreplaceable role in preventing importation
of the global economic crisis consequences
and in ensuring investors’ high trust and
confidence in the country’s stock market. At
the initial stage of our development the primary
goal of the organization was to support the
privatization of the state-owned property,
whereas our today’s mission has significantly
extended and includes the transformation of the
country’s securities market infrastructure and its
transition into important functional institution.
From this standpoint 2012 was very significant
and fruitful. As per the results of 2012, the
amount of assets stored by the NDC has
exceeded AZN 6 billion. Also, in order to
increase the quality of provided services NDC
expanded the range of electronic services.
Within the framework of the institutional
development program of capital markets the
continuous discussions have been conducted
with international organizations and experts
in order to strengthen the NDC’s position
as a centralized and reliable depository of
government and corporate stocks and currently
new projects are under development. The
Twinning project “Approximation of the legal
and regulatory framework for the securities
market of Azerbaijan according to the European
Union acquis and capacity building for the
State Committee for Securities” and “Capital
Market Modernization Project” were launched
in 2012. No doubt that accomplishing these
projects will expand the NDC’s horizons.
Operational results 2012
NDC finished 2012 with an operating profit. 30
new contracts with issuers were signed and as
a result additional AZN 1 537 000 were involved
in depository. Information on 216 contracts with
issuers was updated. 4285 transaction with total
value AZN 457, 8 mln were registered.
225 new issues with total value AZN 889 mln
were registered on primary market.
NDC recorded a profit of AZN 196 649 in 2012
with income AZN 1 694 509 and expenses 1 497
860 (Operational expenses - 1 431 034, income
tax expenses - 66 826)
Future outlook
Nowadays the current condition of the stock
market demands infrastructural and systematic
advancement of the Depository. Having
examined the contemporary challenges
coming from the today’s stock market and
analyzed internal capabilities, the NDC has
worked out a strategic vision and prepared the
itemized action plan for the depository system
conversion. The strategic vision of the NDC
aims to achieve the following objectives:
• Becoming a central institutional body
• Applying advanced international standards
on securities transactions
• Applying standards on corporate
governance
• Developing of internal recourses
CONTACT INFORMATION
Contact Name Rasim Mammadov E-mail rasim.mammadov@mdm.az Website www.mdm.az
Address 19, Bul-Bul Avenue, Baku AZ1000 Azerbaijan
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