Azerbaijan's NDC to perform depository functions for investment funds without separate license

The National Depository Center (NDC) of Azerbaijan has launched a project to perform depository functions for investment funds, and preliminary operational schemes have been developed at the current stage, Mushvig Ahmadli, an advisor to the NDC Chairman, said at the Financial and Investment Forum held in Baku.

Report quotes Ahmadli as saying the project will be implemented in stages, as it involves integration and information exchange between various information systems.

"The depository, which keeps track of the fund's assets, is a key element of the infrastructure for creating an investment fund. Fund shares are a new investment instrument available to investors. According to the legislation, when a fund is created, a depository must be appointed to keep track of its assets. Despite the growing interest in the formation of investment funds in Azerbaijan, the lack of specialized private depositories remains a major obstacle. This is due to the low profitability of such activities in the current market conditions," said the advisor to the NDC chairman.

Ahmadli added that, taking into account the current situation, the regulatory body has proposed amendments to the legislation that would allow the transfer of depository functions to the National Depository Center.

"Now, the NDC has the authority to carry out depository activities in relation to the assets of investment funds without obtaining a separate license."