FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
SECURITIES AND EXCHANGE BROKERS ASSOCIATION OF IRAN (SEBA)
Hossein Khezli Kharazi
General Secretary
The main target of our organizaton is
to make NDC the central settlement
depository organizaton, applying
leading international experience and
recommendations from foreign experts.
Introduction
The plans of NDC in 2011 was not only to improve
operational sphere, but also to strengthen obtained
achievements by becoming a central institutional
body protecting customer rights, implementing
high standards on corporate governance and
financial transparency in securities sphere and
being an example with its services and experience
in securities market. and division of labor between Customer Service
Department and Operational Department,
organization and use of archive of NDC and
organization of clerical work of General Affairs
Department.
The main target of our organizaton is to make NDC
the central settlement depository organizaton,
applying leading international experience and
recommendations from foreign experts. Starting from February, 2011, securities trading on
BSE has started to go through the newly launched
electronic order routing system integrated between
National Depository Center and Baku Stock
Exchange, adapts the process of the corporate
securities trading and their depository registration
to the international standards level.
Corporate Governance Formation of NDC
2011 was remained in memory as a year of positive
changes in corporate governance and operational
sphere of National Depository Center. All corporate
management organs including new Supervisory
and Executive boards and Internal Audit were
formed during this year. The heads of operation, IT
and finance divisions had been also appointed. As
a result in 2011 NDC full accopmlished corporate
formation of the company.
Legal framework of Internal Audit
The regulation on Internal Audit, performing
functions of control of NDC and methodology
guidelines on organization and performing of
Internal Audit were accepted by Supervision Board.
The regulation and methodology guidelines were
prepared on the basic of current legislation,
charter of NDC and recommendations in corporate
governance sphere prepared by International
Finance Corporation(IFC).
The internal auditor is responcible for internal
control systems efficiency, checking and estimation
of systems providing application and efficiency of
risk management procedures and methodology of
risk assessment, accuracy of financial statements,
implementation of procedures in compliance with
legislation and internal rule of the organization and
also for giving conclusions on audit results and
given recommendations and their implementation.
The 2011-2012 Audit Program was accepted
by Supervision Board of NDC for application of
audit supervision. The program includes reveiw of
operational risks, adherence of ficancial planing
procedures, issues with indepted depositors and
issuer companies, actions of NDC during the
procedure of phasing out of securities of liquidated
companies, risk redusing measures, combination
The electronic order routing system linking NDC
and BSE(Baku Stock Exchange was launched In
the first quarter of 2011.
The newly established system minimizes the
paperwork turnover, simplifies the transactions
registration procedures and makes multiple
intraday trades with the same securities possible
for professional participants of securities market.
Financial budgeting in NDC
The procedures on “ Finance planing and control”
were accepted by General Meeting of Shareholders
of NDC. Thus, implementation of accounting policy,
financial transparency and corporate governance
standards of organization were provided.
The procedures on “ Finance planing and control”
also was took into considiration for plaing of assets
for implementation of development plan of NDC,
performing finanlical planing in compliance with
tax legislation and International Financial Reporting
Standards and sustainable management of cash
and floating assets.
Operational results (for 20/12/2012)
NDC finished 2011 with an operating profit. 30
new contracts with issuers were signed and as a
result additional AZN 1 537 000 were involved in
depository.
Informartion on 216 contracts with issuers was
updated. 4285 transaction with total value AZN 457,
8 mln were registered.
The main advantage of the electronic order routing
system is that it allows the professional participants
involved in trade to remotely connect to the NDC’s
accounts system in order to access the necessary
information on their clients, as well as use it during
the trade at stock exchange. 225 new issues with total value AZN 889 mln were
registered on primary market.
The order routing exchange system has been
realized after the adoption of amendments to the
“Depository Activities” Standards and “Brokerage
Activities in the Securities Market” Rules by the
State Committee for Securities of Azerbaijan
Republic. 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.
In order to decrease system risk and solve
operational problems the technical comeete
consisting of employers of NDC and BSE was
created.
Steps to Improve Information Security
Improving of information security systems providing
protection of the information kept in NDC from
foreign interventions, technical bugs and other
risks is one of the missions of our organization.
The thorough research on transition to İSO 27001
standards was conducted for this purpose.
Also the seminars by our Turkish colleague from
Takasbank were held and roadmap was prepared
and presented.
NCD recorded a profit of AZN 290 550, 78 in 2011
with income AZN 1 252 234,72 and expences AZN
961 683,94.
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
* Please refer to page 109 for the Iran country report.
CONTACT INFORMATION
Contact Name Mr. Amir Yousefianpour E-mail [email protected] Website www.seba.ir
Address Second floor, # 17, Sibouyeh intersection, Shahid Qandi street, Sohrevardi avenue, Tehran
Phone 0098 21 88524145-6 Fax 0098 21 88525988
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