Azerbaijan, Baku, Oct. 8 / Trend A. Akhundov /
Azerbaijan is interested in establishing investment funds, chairman of the State Securities Committee Rufat Aslanli told the media today.
"As a regulator we've established the legal, organisational and technological foundations for investment fund activity," he said. "Although Baku Stock Exchange is a private organisation, it has enthusiastically supported the idea from the very beginning."
He said that making these decisions require a long term investment analysis.
"We are aware of the interest in this area," he said. "When there are specific facts we will announce them."
The Law on Investment Funds was adopted by the Parliament of Azerbaijan in October 22, 2010.
Investment funds may be established in Azerbaijan in the form of joint-stock investment and mutual funds. The law distinguishes three types of mutual funds: open, interval and closed depending on the contractual rights to purchase the unit.
A holder of investment shares is entitled to urge the company to repurchase all or part of its own shares and terminate the contract in an open investment fund.
Such a right in the interval fund is restricted for a period determined by the rules of the investment trust management. That is, holders of shares may require their redemption periodically and for a certain period or interval of time.
Holders of shares of a closed investment fund are not entitled to urge the company to terminate the agreement before its term expires.
The law on Investment Funds also establishes a special administration for licensing these funds.