Baku, Azerbaijan, March 7
By Anvar Mammadov – Trend:
Expansion of the privatization process in Azerbaijan will help develop the capital market, expert on capital markets Jafar Ibrahimli told Trend on March 7.
"The expansion of the privatization process and transformation of major state enterprises into open joint-stock companies could be a strong support for development and growth of the capital market could," he said.
Assessing the problems existing on the market, Ibrahimli noted that to date the main problem of Azerbaijan's capital market is that the companies in the market did not adhere to the standards of corporate governance in a timely manner and did not work transparently.
"To attract companies to more transparent management, it is necessary to apply tax and social preferences for exemplary companies, which are transparent and financed through the stock market. Also, it is also necessary to apply various preferences for those who invest in the capital market. Only then, we will be able to achieve the development of the capital market, "the expert said.
Javid Nazarov, the director of the department for supervision over financial markets at Azerbaijan's Financial Market Supervisory Authority (FIMSA), told Trend that the regulator proposes to apply preferences to companies listed on the exchange.
"In the world, various tax preferences are provided to companies that enter the exchange . Furthermore, there are also examples when investors hold securities for a certain period of time and then sell them, they are exempt from income tax on this transaction. We want to apply this experience in Azerbaijan in order to activate the access of enterprises to the listing, "Nazarov said.
