Conditions for formation of stock exchange index in Azerbaijan announced EXCLUSIVE

Azerbaijan is planned to form stock exchange index, advisor to the Chairman of Management Board of the Financial Markets Supervisory Authority (FIMSA) Rashad Agayev told Report.

"The key point for indexation is existence of sufficient shares. In the international stock exchanges, the indexation happens as a result of grouping on shares of 25, 30, 50, 100 and more issuers. Indices are also referred as indicator of benchmark of the stock exchange. In accordance with the targets in the Strategic Road Map, index of stock exchange in Bak Stock Exchange is planned," Agayev said.

He noted that in order companies to show interest to listing, they should firstly show interest to financing through public offering or bourse.

"The main factor playing role in this issue is that the companies should be aware of possibility of financing and meet listing requirements," he added.

"Traditional financing method is still debt and credit and, therefore, FIMSA organizes events which promote the financing through capital markets. On the other side, Baku Stock Exchange’s new listing rules entered into force in April 2019. We simplified the listing rules for issuers," Agayev said.

He reminded that currently, 3 market segments operate on share and bond listing. According to him, in main and standard market shares of 5 JSCs are in the listing, in the alternative market, shares of more than 900 shareholders are in the listing.

"In the market segment of the bonds, 10 corporate bonds are in the listing, in the alternative market segment, 5 corporate bonds are in the listing," Agayev said.